Instructions for 2024 Schedule MS 

Purpose of Schedule MS       

Use Schedule MS to determine the amount of manufacturer’s sales tax credit carryforward that you may claim on your 
2024 Wisconsin return to offset your franchise or income tax liability. Although the manufacturer’s sales tax credit may not 
be computed for taxable years beginning on or after January 1, 2006, you may be eligible to claim your unused manufac-
turer’s sales tax credit carryforward on your 2024 Wisconsin franchise or income tax return. 

Who Must Complete Schedule MS 

All taxpayers who are eligible to claim a manufacturer’s sales tax credit and who wish to claim the credit must file Schedule 
MS. 

Only taxpayers who had $25,000 or less of total unused manufacturer’s sales tax credit carryforward as of the beginning 
of their 2006 taxable year are eligible to claim the credit. 

 CAUTION: You may not claim a manufacturer’s sales tax credit if your unused manufacturer’s sales tax credit carryfor-
 ward as of the beginning of your 2006 taxable year was more than $25,000. 
                                                                                                                              
Partnerships and limited liability companies (LLCs) treated as partnerships may not file Schedule MS. Instead, their part-
ners or members file Schedule MS based on amounts passed through from the partnership or LLC when the credits were 
first computed. 

Carryover of Unused Credits 

The manufacturer’s sales tax credit is nonrefundable. For corporations, any unused credit for taxable years beginning on 
or after January 1, 1988 may be carried forward for 20 years. For taxpayers other than corporations, any unused credit for 
taxable years beginning on or after January 1, 1998 may be carried forward for 20 years, and any unused credits for taxable 
years beginning before January 1, 1998 may be carried forward for 15 years. Unused tax credits for taxable years beginning 
before January 1, 1998 are now expired and may not be claimed. 
 
If there is a reorganization of a corporation claiming a manufacturer’s sales tax credit, the limitations provided by section 
383 of the Internal Revenue Code may apply to the carryover of any unused credit. 

Note: The manufacturer’s sales tax credit available to offset income for taxable years beginning in 2006 and 2007 was 
limited to 50% of the total carryforward amount. This limitation does not apply to taxable years beginning in or after 2008. 
 
Specific Instructions 

Part I: Unused Manufacturer’s Sales Tax Credits from Pass-Through Entities and Sole Proprietorships 

In the columns provided, fill in the name and federal employer identification number of each pass-through entity from which 
you have unused manufacturer’s sales tax credits. If you have unused manufacturer’s sales tax credits from one or more 
sole proprietorships, fill in the name of each sole proprietorship from which you have unused manufacturer’s sales tax 
credits. 

For corporations, do not enter any amounts in Part I which are attributable to the corporation’s own operations rather than 
from its ownership in a pass-through entity. Use line 2a to report credits attributable to the corporation’s own operations. 

For each pass-through entity, or sole proprietorship, you entered in Part I, fill in the amount of unused manufacturer’s sales 
tax credit attributable to that business as of the beginning of your 2024 taxable year. 

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                                             2024 Schedule MS Instructions 

Part II: Manufacturer’s Sales Tax Credit Carryforward Available for 2024 

You may offset unused manufacturer’s sales tax credits from pass-through entities and sole proprietorships only against 
tax on the income from the business operations in which the fuel and electricity were consumed. If you have unused credits 
from more than one business, you must compute the allowable credit from each business separately. You may not offset 
credits from a business that incurred a loss against the tax owed on income from another business that operated at a profit. 

Column b. Fill in your share of each business’s net income or loss reported on your 2024 franchise or income tax return. 
Enter the amounts in column b in the same order as you listed the names of the businesses in Part I. If column b shows a 
loss from a particular business, enter zero (0) in column e for that business. For shareholders of tax-option (S) corporations, 
the following items are not considered income from the business operations: 
• Salary for services performed. 
• Interest on loans made to the corporation. 
• Taxable dividends paid by the corporation. 
• Rents and royalties from assets leased to the corporation. 

Column c. Enter your tax. Your tax is one of the following: 
• Corporations: Form 4, line 18; Form 4T, line 11; Form 5S, line 4; or Form 6, Part III, line 9. 
• Individuals: Form 1, line 21 or Form 1NPR, line 39. 
• Estates and Trusts: Form 2, line 6c or Form 4T, line 19. 
If the result is zero or less, enter zero (0) in column e for that business. 

Column d. Corporations should skip column d and fill in column e. Individuals, estates, and trusts should fill in the amount 
of their Wisconsin tax liability computed without including any amounts of income, deduction, or expense from the business 
operations in which the fuel and electricity were consumed. You must make a separate computation for each pass-through 
entity or sole proprietorship from which you have unused manufacturer’s sales tax credits. 

If you are an individual or fiduciary, you may determine your recomputed tax liability by completing a second Wisconsin 
return which does not include these income, expense, or deduction items. The amount to enter in column d is the recom-
puted amount from the following lines: 
• Individuals: Form 1, line 21 or Form 1NPR, line 39. 
• Estates and Trusts: Form 2, line 6c or Form 4T, line 19. 

Column e. Corporations enter the portion of the gross franchise or income tax that is attributable to the amount in column 
b. This is the lesser of (1) the net income reported in column b multiplied by 7.9% (.079), or (2) the corporation’s gross tax 
in column c. Individuals, estates, and trusts subtract the amount in column d from the amount in column c for each pass-
through entity or sole proprietorship. 

Column f. Enter the amount of unused credit for each business from Part I. 

Column g. For each pass-through entity or sole proprietorship, enter the smaller of the amount in column e or column f. 

Line 2. If you have more than 9 businesses from which you have unused manufacturer’s sales tax credits, file  a schedule 
with your Schedule MS  showing these same columns for each additional business. Add the amounts from column g on 
this schedule and enter the total on line 2. 
 
Line 2a. Corporations fill in this line to report unused manufacturer’s sales tax credit carryforward attributable to their own 
operations. Do not include any unused credit on line 2a that is attributable to a corporation’s interest in a pass-through 
entity. 

Line 3. Add the amounts in column g and enter the total on line 3. This is the amount of manufacturer’s sales tax credit 
you may claim on your return. Report this amount as follows: 

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                               2024 Schedule MS Instructions 

•  All taxpayers except tax-option (S) corporations and combined group members, enter the credit on the appropriate line 
  of Schedule CR.  
•  Tax-option (S) corporations report this amount on Form 5S, line 5.  
•  If you are a combined group member, do not report the manufacturer’s sales tax credit on Schedule CR. The combined 
  group member separately computes its Schedule MS credit and reports the credit amount on Form 6, Part V, line 1.  

Required Attachments to Return 

Include your completed Schedule MS with your Wisconsin income or franchise tax return.  

Additional Information 

For more information, you may: 
• E-mail your question to: DORFranchise@wisconsin.gov 
• Call (608) 266-2772  
  (Telephone help is also available using TTY equipment. Call the Wisconsin Telecommunications Relay System at 711  
  or, if no answer, (800) 947-3529. These numbers are to be used only when calling with TTY equipment.) 
• Send a FAX to (608) 267-0834 
   
                               Applicable Laws and Rules 
  This document provides statements or interpretations of the following laws and regulations enacted as of October 24, 
  2024:  Chapter 71 Wis. Stats., and Chapter Tax 2, Wis. Adm. Code 

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