Wisconsin Qualified Research Sales Tax Exemption
- Sep 27, 2013 | Gail Cole
Updated, 1.24.2014: The Wisconsin Department of Revenue has updated the fact sheet explaining the sales and use tax exemption for qualified research.
Wisconsin allows an exemption from sales and use tax for property "used exclusively and directly in qualified research."
As outlined by a Wisconsin Department of Revenue notice, you are eligible for the exemption if:
- You are engaged in manufacturing in Wisconsin at a building assessed under sec. 70.995, Wis. Stats.;
- You are engaged primarily in biotechnology in Wisconsin; or
- You are a combined group member who is conducting qualified research for another combined group member and that other combined group member is a person described above.
The exemption may be claimed by qualifying corporations, associations, trusts, and just about any other legal entity.
Exempt items include:
- Tangible personal property, including fuel and electricity, and certain other property consumed or destroyed or losing their identities while being used exclusively and directly in qualified research;
- Machinery and specific processing equipment and attachments, accessories, etc, used exclusively and directly in qualified research.
To be used exclusively is defined as: "at least 95% of the total use of the tangible personal property… must be direct use in qualified research or manufacturing."
In order to claim the exemption, a valid Wisconsin sales and use tax exemption certificate must be completed by the purchaser and provided to the seller. A copy of the certificate is available here.
Read a detailed description of the Wisconsin sales and use tax exemption for qualified research after July 2, 2013 here.
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