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2024 Schedule BD Page 2 of 2
The credit is equal to the following as determined Line 3: Add lines 1 and 2d. This is the total current year
by the WEDC: business development credit. Enter the amount of credit
from line 3 on the appropriate line of Schedule CR. See
1. Up to 10% of the wages the claimant paid to an eligible the following exceptions:
employee in the taxable year.
• If the claimant is a combined group member, enter the
2. Up to 5% of the wages the claimant paid to an eligible amount of credit on Form 6, Part III, line 13 instead of
employee in the taxable year if the eligible employee Schedule CR.
is employed in an economically distressed area as
determined by WEDC. • Tax-option (S) corporations, partnerships, and LLCs
treated as partnerships should prorate the amount of
3. Up to 50% of the claimant's training costs to undertake credit on line 3 among the shareholders, partners, or
activities to enhance an eligible employee's general members based on their ownership interest. Show
knowledge, employability, and flexibility in the the credit for each shareholder on Schedule 5K-1
workplace; to develop skills unique to the claimant's and for each partner or member on Schedule 3K-1.
workplace or equipment; or to develop skills that will Caution: A tax-option (S) corporation or partnership
increase the quality of the claimant's product. that makes an election under sec. 71.07(3y)(c)1.b.
4. Up to 3% of personal property investment and up to or 71.28(3y)(c)1.b., Wis. Stats., to claim the credit at
5% of real property investment in a capital investment the entity level, may not pass through the credit to its
project that involves a total capital investment of at shareholders or partners on Schedules 5K-1 or 3K-1.
least $250,000 or, if less than $250,000, involves a • Fiduciaries who file Form 2 must complete lines 3a
capital investment equal to at least $10,000 per eligible and 3b.
employee employed on the project.
Line 3a: Fiduciaries - prorate the credit from line 3 between
5. A percentage of the wages the claimant paid to an the entity and its beneficiaries in proportion to the income
eligible employee in the taxable year if the position allocable to each. Show the beneficiaries' portion of the
was created or retained in connection with the credit on line 3a. Show the credit for each beneficiary on
claimant's location or retention of the claimant's Schedule 2K-1.
corporate headquarters in Wisconsin and the job duties
associated with the eligible employee's position involve Line 3b: Fiduciaries - Subtract line 3a from line 3. This
the performance of corporate headquarters functions. is the estate's or trust's portion of the credit. Enter the
amount of credit from line 3b on the appropriate line of
6. Up to 15% of the amount invested in workforce housing, Schedule CR.
and up to 15% of the amount invested in establishing
an employee child care program for employees as Required Attachments to Returns
determined by WEDC. You must include the following information with your
Specific Instructions Wisconsin franchise or income tax return:
Line 1: Fill in the eligible amount of business development • Schedule BD
credit certified to you by the WEDC. • A copy of your certification/verification to claim tax
Line 2: If applicable, fill in the entity name, Federal benefits issued by WEDC.
Employer Identification Number (FEIN), and the amount Exception for shareholders, partners, members, and
of business development credit passed through from tax- beneficiaries: If the credit is received from a tax-option
option (S) corporations (from Schedule 5K-1), partnerships (S) corporation, partnership, LLC treated as a partnership,
and LLCs treated as partnerships (from Schedule 3K-1), estate, or trust, include a copy of Schedule 5K-1, 3K-1,
and estates and trusts (from Schedule 2K-1). or 2K-1 with Schedule BD instead of the certification/
verification to claim tax benefits issued by WEDC.
Applicable Laws and Rules Additional Information
This document provides statements or interpretations of For more information, you may:
the following provisions of Wisconsin Statutes in effect as
of June 28, 2024: chs. 71, Wis. Stats. and chs. Tax 1, 2 • E-mail your question to: DORFranchise@wisconsin.gov
and 3 Wis. Adm. Code. • Call (608) 266-2772 [TTY: Call the Wisconsin
Telecommunications Relay System at 711. If no answer,
dial 1-800-947-3529]
• Send a FAX to (608) 267-0834
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