Wisconsin Updates Guidance For Qualified Research Exemption

Wednesday, February 25th, 2015

 
 
A scientists working with a micoscope.
Share
Link
Wisconsin
Manufacturing

The Wisconsin Department of Revenue released updated guidance on its qualified research exemption.

Wisconsin exempts sales of certain items used in "qualified research." To use the exemption, a person must (1) be engaged in manufacturing in Wisconsin, (2) be engaged primarily in biotechnology in Wisconsin, or (3) be doing qualified research for a combined group member that does (1) or (2).

The exemption applies to sales of two kinds of property. First, the exemption applies to sales of machinery and equipment used exclusively and directly in qualified research. It applies to attachments, parts, and accessories as well. Second, the exemption applies to sales of tangible personal property that is consumed or destroyed or loses its identity while being used exclusively and directly in qualified research.

To be "qualified research," a research activity must meet five criteria. First, the research must be in connection with the taxpayer's trade or business. Second, it must be research and development in the in the experimental or laboratory sense. Third, it must be undertaken to discover information that is technological in nature. Fourth, it must be intended to be useful in the development of a new or improved business component of the taxpayer. Fifth, it must be part of a process of experimentation related to a new or improved function, performance, or quality. It does not include research related to existing business components, marketing or efficiency research, or the development of computer software to be used by the taxpayer.

http://www.dor.state.wi.us/pubs/pb131.pdf


About TTR

Transaction (buying or selling things), Tax (the tax on this activity), Resources (our people, our website, our support services) - TTR, Inc.

TTR has a website that companies subscribe to and use daily. This website provides a list of everything that can be bought or sold in the U.S. It provides simple answers to whether buying or selling these items is taxable (subject to a sales tax or other tax), and it provides all the legal authority to support these tax answers.

TTR likes to keep things simple and fun, which is why it has great people who provide help to clients on any support questions they have about transaction tax issues.

Please visit TTR on the web at www.ttrus.com or call 866.578.8193.

Georgia Exempts Supplies Used in Plying the High Seas

Friday, February 23rd, 2018 -The Georgia Department of Revenue recently released a ruling that consumable supplies used by a marine transpo...

Certain Purchases from Pawnbrokers Not Taxable in...

Thursday, February 22nd, 2018 -Certain Purchases from Pawnbrokers Not Taxable in California The California Department of Tax and Fee ...

Colorado Waives Penalties for Notice and Reporting...

Monday, February 19th, 2018 -The Colorado Department of Revenue (DOR) released a publication stating that it has agreed to waive penalties ...

Maryland Sales Tax Holiday for Energy Efficient...

Friday, February 16th, 2018 -The Maryland sales tax holiday for energy efficient appliances runs from Saturday, February 17, 2018, at 12:01...

Dental Prostheses Exempt in Michigan

Wednesday, February 14th, 2018 -The Michigan Department of Treasury recently released a publication describing the retroactive exemption for d...

Taxability of Amusement Devices and Video Games in...

Monday, February 12th, 2018 -The Wisconsin Department of Revenue has released guidance addressing the taxability of video games and amuseme...