Wisconsin Tax Law: What’s New for Business Owners in 2025

The impact of tax law changes can be significant for business owners, and Wisconsin is no exception. As we approach 2025, several updates to Wisconsin tax law will reshape the landscape for businesses operating in the state. Here’s what business owners need to know.

1. Corporate Income Tax Rate Changes
Starting in 2025, Wisconsin will implement a phased reduction in the corporate income tax rate. The new structure will lower the rate from 7.9% to 7.5%. For businesses with taxable income over $1 million, the rate will decrease to 7%, promoting growth and encouraging larger companies to invest further in the state.

2. Sales and Use Tax Adjustments
In 2025, the sales and use tax regulations will see modifications to better align with online sales. Businesses that sell goods or services online will need to comply with the updated regulations, including a streamlined process for collecting and remitting sales taxes, which aims to reduce administrative burdens and ensure fair competition with brick-and-mortar stores.

3. New Tax Incentives for Clean Energy Investments
Wisconsin is placing a stronger emphasis on clean energy initiatives. Business owners investing in renewable energy projects or energy efficiency improvements will qualify for new tax credits. These incentives aim to support the state’s commitment to sustainability and reduce overall energy costs for companies, making it a win-win for both the environment and the bottom line.

4. R&D Tax Credits Expansion
In an effort to stimulate innovation, the state will expand the research and development (R&D) tax credit program. The maximum allowable credit for qualifying activities will increase, allowing businesses engaged in R&D to offset their tax liabilities significantly. This change aims to foster a more vibrant entrepreneurial ecosystem in Wisconsin.

5. Property Tax Assessment Updates
Wisconsin will also revise its property tax assessment methodology. The new framework will focus on market value assessments, aiming to create a more equitable tax structure for business properties. Consequently, businesses should prepare for potential changes in property tax liabilities and engage with local assessors to understand how these updates may impact their operations.

6. Streamlined Filing Processes
To make compliance simpler, Wisconsin will introduce advanced digital platforms and resources for business tax filing. Enhanced electronic filing systems will allow business owners to submit their taxes more efficiently and access state resources with ease, reducing the time spent on administrative tasks.

7. Workforce Development Tax Credits
In alignment with workforce development goals, tax credits will be offered to businesses that actively participate in training and developing their employees. The goal is to encourage companies to invest in their workforce, ensuring they remain competitive in the evolving job market.

Conclusion
As Wisconsin approaches 2025, understanding the upcoming changes in tax law is essential for business owners to adapt and thrive. By staying informed about these updates, businesses can leverage new opportunities, minimize tax liabilities, and continue to contribute to Wisconsin's economic growth.