Our Dash of SALT Blog provides the most recent developments and changes in state and local tax regulations. Here are the latest updates for Wisconsin.

February 24, 2026

Wisconsin Expands Tax Benefits for Qualified Small Business Stock Gains

Authored by: Brian Meier, MSA and Katie Nguyen, CPA

Wisconsin has revised its 2025 guidance for reporting capital gains to reflect several provisions of the One Big Beautiful Bill Act (OBBBA) related to gain exclusions on the sale of Qualified Small Business Stock (“QSBS”). Under these changes, the state now follows the expanded federal exclusions for gains from qualified small business stock acquired after July 4, 2025: a 50% exclusion for stock held at least 3 years, 75% for stock held at least 4 years, and a full 100% exclusion for stock held 5 years or more. The state also conforms to increased federal thresholds, raising the per issuer exclusion cap from $10 million to $15 million and expanding the aggregate gross asset limit for eligible small businesses from $50 million to $75 million. These updates can materially affect planning for investors realizing large gains from long term holdings in qualifying companies.

If you have questions about state conformity to QSBS, contact Withum’s SALT Team for guidance.

January 28, 2026

Wisconsin Implements Select OBBBA Changes for Capital Gains on Small Business Stock

Authored by: Brandon Spinella and Penny Sweeting, CPA

The Wisconsin Department of Revenue has updated its publication entitled “Reporting Capital Gains and Losses for Wisconsin by Individuals, Estates, and Trusts” for use in preparing 2025 individual income tax returns. Revisions reflect those certain provisions regarding capital gains from the sale of qualified small business stock in section 70432 of P.L. 119-21 (One Big Beautiful Bill Act) will apply for Wisconsin tax purposes. Specifically, provisions increasing the percentage of gains on qualifying small business stock that can be excluded from income (50% for stock held for 3 years, 75% for stock held for 4 years, 100% for stock held for 5 years); increasing the maximum gain per issuer that can be excluded from income (from $10 million to $15 million); and increasing the aggregate gross asset limit a qualifying small business can have (from $50 million to $75 million) will apply.

If you have any questions about Wisconsin’s changes related to the One Big Beautiful Bill Act, please reach out to a member of the Withum SALT Team.

June 20, 2025

Wisconsin Court Clarifies Limits of PL 86-272 Protection for Service-Based Businesses

Authored by: Kiana McGowan, CPA, MBA and Penny Sweeting, CPA

On June 3, 2025, the Wisconsin Court of Appeals ruled in ASAP Cruises, Inc. v. Wisconsin Department of Revenue (No. 2023AP1251), clarifying that Public Law 86-272 applies only to the solicitation of tangible personal property—not services. ASAP Cruises, a Florida-based company, had over 100 agreements with Wisconsin travel agents that used its website to sell vacation packages. The court found that these service-based activities exceeded the narrow protections of PL 86-272. Removing the protection of PL 86-272 allows Wisconsin to impose income taxes on the in-state activities of ASAP. Generally, activities such as selling services or warranties, providing post-sale support, or using customer data online fall outside this federal protection’s scope.

This decision reinforces Wisconsin’s interpretation that service-based activities, particularly those conducted online, do not qualify for PL 86-272 immunity and are, therefore, subject to state income tax. For multistate businesses, especially those operating in the digital or service sectors, this ruling highlights the importance of evaluating their in-state activities. Companies should be aware that similar interpretations may be applied in other states, potentially exposing them to additional tax liabilities.

For more details, please refer to the full ruling of this case here.

If you have questions about state income tax nexus, please reach out to a member of the Withum SALT Team.

June 3, 2025

Wisconsin Sales and Use Taxes on Credit Card Charges

Authored by:Breea Boylan, MSA, CPA and Penny Sweeting, CPA

The April 2025 edition of the Wisconsin Tax Bulletin addressed the sales tax treatment of credit card fees charged by retailers. The charge of an additional fee by retailers to consumers who pay with a credit card is part of the sales price of taxable products or services sold to the consumer. Therefore, if the product or service sold is taxable, the additional fee charged to the consumer for using a credit card is taxable. If the credit card is used to pay for both taxable and nontaxable products or services, the retailer may allocate the credit card fee between the taxable and nontaxable purchases and charge tax on the taxable portion of the credit card fee.

The department contacts retailers not properly charging sales tax on such fees. You may inform the department by emailing a copy of a receipt or invoice that shows sales tax is not charged correctly on credit card fees to [email protected].

If you have questions about Wisconsin taxes, please reach out to a member of the Withum SALT Team.

February 18, 2025

Wisconsin – Updated Guidance on Digital Goods and Computer Software

Authored by:Courtney Easterday,MSA and Ryan Schupp

The Wisconsin Department of Revenue recently updated its guidance on the taxability of digital goods, noting that some prewritten computer software may qualify as a digital good. The Department provided an example of the purchase of prewritten computer software that is accessed through means other than tangible storage media, such as a video game that is accessed online. Furthermore, the state noted that remotely accessed prewritten software is not considered a digital good if the software is used to process the client’s data and if the processing is under the direction and control of the provider.

If you have questions about the taxability of digital goods and services, please contact a member of the Withum SALT Team.

Disclaimer: Please note this is the information that is readily available at this time, it is subject to change so please consult your Withum tax advisor.