Vehicle Battery and Engine Research Tax Credits

A corporation involved in qualified research is eligible for a tax credit equal to 11.5% of the qualified research expenses that the corporation incurs in Wisconsin during the taxable year. Qualified research includes, but is not limited to, automotive batteries for use in hybrid electric vehicles that improve the efficiency of electricity use, and research related to designing internal combustion engines for vehicles, including expenses related to designing vehicles that are powered by such engines and improving production processes for such engines and vehicles. For the purpose of the tax credit, internal combustion engines include fuel cell, electric, and hybrid electric vehicles. Corporations may claim an additional tax credit equal to 5% of the amount paid or incurred during the taxable year to construct and equip new facilities or expand existing facilities used in Wisconsin for qualified research. For more information see the Wisconsin Department of Revenue Research Credits website.

(Reference 71.28(4)(ab)(2), 71.28(4)(ad), and 71.28(5)(ad))