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2024 Schedule EC Page 2 of 2
Caution interest. Show the credit for each shareholder on
Schedule 5K-1 and for each partner or member
• The credit you compute on Schedule EC is income
on Schedule 3K-1. Caution: A tax-option (S)
and must be reported on your Wisconsin franchise
corporation or partnership that makes an election
or income tax return in the year computed.
to claim the credit at the entity level may not pass
• The enterprise zone jobs credit is not allowable for through the credit to its shareholders or partners
expenditures which are included in the basis for on Schedules 5K-1 or 3K-1.
another Wisconsin income or franchise tax credit,
• Fiduciaries who file Form 2 must complete lines 3a
such as the research expense credit.
and 3b.
• If you recklessly or fraudulently claim a false credit,
Line 3a: Fiduciaries – Prorate the credit from line 3
you may be ineligible to claim it for up to 10 years
between the entity and its beneficiaries in proportion to
and you may owe a penalty. See pages 24 and 25
the income allocable to each. Show the beneficiaries’
of Wisconsin Tax Bulletin #180 for further details.
portion of the credit on line 3a. Show the credit for
Specific Instructions each beneficiary on Schedule 2K-1.
Line 1: Fill in the total amount of enterprise zone jobs Line 3b: Fiduciaries – Subtract line 3a from line 3.
credit certified to you by the WEDC, as computed This is the estate’s or trust’s portion of the credit. Enter
by the WEDC. the amount of credit from line 3b on the appropriate
line of Schedule CR.
Line 2: If applicable, fill in the entity name, Federal
Employer Identification Number (FEIN), and the Required Attachments to Return
amount of enterprise zone jobs credit passed
You must include the following information with your
through from tax-option (S) corporations (from
Wisconsin franchise or income tax return:
Schedule 5K-1), partnerships and LLCs treated as
• Schedule EC
partnerships (from Schedule 3K-1), and estates and
trusts (from Schedule 2K-1). • A copy of your certification to claim tax benefits
issued by WEDC.
Line 3: Add lines 1 and 2d. This is the total current
year enterprise zone jobs credit. Enter the amount • Verification of expenses from WEDC.
of credit from line 3 on the appropriate line of
Exception for shareholders, partners, members,
Schedule CR. See the following exceptions:
and beneficiaries: If the credit is received from a
• If the claimant is a combined group member, enter tax-option (S) corporation, partnership, LLC treated
the amount of credit on Form 6, Part III, line 13 as a partnership, estate, or trust, include a copy of
instead of Schedule CR. Schedule 5K-1, 3K-1, or 2K-1 with Schedule EC
instead of the certification to claim tax benefits and
• Tax-option (S) corporations, partnerships, and
verification of expenses.
LLCs treated as partnerships should prorate the
amount of credit on line 3 among the shareholders, Additional Information
partners, or members based on their ownership
For more information, you may:
Applicable Laws and Rules • E-mail your question to
DORFranchise@wisconsin.gov
This document provides statements or interpretations
of the following provisions of Wisconsin Statutes in • Call (608) 266-2772 [TTY: Call the Wisconsin
effect as of the revisionDRAFTdate: chs. 71, Wis. Stats. and Telecommunications09-03-2024Relay System at 711. If no
chs. Tax 1, 2 and 3 Wis. Adm. Code.
answer, dial 1-800-947-3529]
• Send a FAX to (608) 267-0834
• Write to the Audit Bureau, Wisconsin Department of
Revenue, Mail Stop 3-107, PO Box 8906, Madison,
WI 53708-8906.
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