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Instructions for 2024 Schedule CM
Purpose of Schedule CM
Use Schedule CM to claim the community rehabilitation program credit. The credit must be claimed within four years of the
unextended due date of the return.
Who is Eligible to Claim the Credit
Any individual, estate or trust, partnership, limited liability company (LLC), corporation, tax-option (S) corporation, or tax
exempt organization that enters into a contract with a community rehabilitation program to have the program perform work
for the entity may be eligible for the credit.
Partnerships, LLCs treated as partnerships, and tax-option (S) corporations cannot claim the credit; instead, the credit
flows through to the partners, members, or shareholders based on their ownership interests.
Estates and trusts share the credit with their beneficiaries in proportion to the income allocable to each.
Credit is Income
The credit that you compute on Schedule CM is income and must be reported on your Wisconsin franchise or income tax
return in the year computed. This is true even if you cannot use the full amount of a credit computed this year to offset
tax liability for this year and must carry part or all of it forward to future years.
Carryover of Unused Credit
The community rehabilitation program credit is nonrefundable. Any unused credit may be carried forward for 15 years. If
there is a reorganization of a corporation claiming the community rehabilitation program credit, the limitations provided by
Internal Revenue Code sec. 383 may apply to the carryover of any unused community rehabilitation program credit.
Definitions
“Community rehabilitation program” means a nonprofit entity, county, municipality, or state or federal agency that directly
provides, or facilitates the provision of, vocational rehabilitation services to individuals who have disabilities to maximize the
employment opportunities, including career advancement, of such individuals.
“Vocational rehabilitation services” includes education, training, employment, counseling, therapy, placement, and case
management.
“Work” includes production, packaging, assembly, food service, custodial service, clerical service, and other commercial
activities that improve employment opportunities for individuals who have disabilities.
Specific Instructions
Caution: Before completing Part I, you must first have the community rehabilitation program complete Part II. Prior to giving
Schedule CM to the community rehabilitation program, fill in entity name on line 2 and taxable year on line 3 of Part II. No
credit is allowable unless Part II is completed by the community rehabilitation program.
If you are claiming the credit based on payments for work performed by more than one community rehabilitation program,
a separate Schedule CM must be completed for each. Part II must be completed by each community rehabilitation program for
which the credit is being claimed. Complete only lines 1 and 2 of Part I for each additional community rehabilitation program.
The amount from line 2 of each additional Schedule CM should be included on line 3 of your first Schedule CM.
Part I Instructions
Line 1. Enter the amount paid in the taxable year to a community rehabilitation program to perform work for your business.
This is generally the amount from line 6 of Part II if that amount was paid during the taxable year. However, do not enter
more than $500,000 paid for work performed by a community rehabilitation program.
IC-334 (R. 10-24) 1
