Instructions for 2023 Schedule MA-M 

Purpose of Schedule MA-M 
 
Use Schedule MA-M to claim the manufacturing credit. The credit is available for taxable years beginning after December 
31, 2012. 
 
Who is Eligible For the Credit 

Any individual, estate, trust, partnership, limited liability company (LLC), corporation, tax-option (S) corporation, or tax-
exempt organization may be eligible for the credit. 
 
In order to be eligible to compute the credit, a claimant must generate receipts from the lease, rental, license, sale, 
exchange, or other disposition from the following:  
 
•  Tangible personal  property manufactured  in whole  or in part by the claimant on property that  is assessed as 
 manufacturing under sec. 70.995, Wis. Stats.  
 
Partnerships, LLCs treated as partnerships, and tax-option (S) corporations cannot claim the credit; the credit computed 
by those entities 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. 
 
The credit must be claimed within four years of the unextended due date of your return. 
 
Manufacturing Assessments 
 
Manufacturing  assessments  are  performed  by  the  Department  of  Revenue's  Manufacturing  Bureau.  Generally, 
applicants must request certification by March 1 of the prior calendar year in order to be certified for the current calendar 
year;  however, if the applicant is approved by DOR to be classified as a manufacturer, but is not eligible to be listed on 
the manufacturing roll until January 1 of the following year, the applicant may claim the credit in the year in which the 
manufacturing classification is approved.    
 
To find out  if  the  property is assessed as manufacturing, visit the department's online manufacturing assessment 
roll lookup at:  https://ww2.revenue.wi.gov/RETRWebRolls/application. 
 
For answers to additional manufacturing assessment questions, contact the regional office located on the following page: 
slfdoc.pdf (wi.gov)  
 
For potential manufacturers, complete the following questionnaire:  revenue.wi.gov/DORForms/pa-780.xlsx 
 
Contact information for the Department of Revenue's Manufacturing Bureau can be found at:    
revenue.wi.gov/contact/slfbmta.html 
 
Credit is Income 
 
The credit that you compute on Schedule MA-M is income and must be reported on your Wisconsin franchise or income 
tax return in the year after the year in which the credit was computed. The credit must be included in Wisconsin income 
to the extent it was not included in federal adjusted gross income or federal taxable income. This is required even if you 
are not able to fully utilize the credit in the current taxable year. 

 IC-116 (R. 11-23)                                   1 

                                          2023 Schedule MA-M Instructions 

Example: You computed a manufacturing credit for 2023. The amount of the credit must be included on your 2024 
Wisconsin income or franchise tax return to the extent it is not included in your 2024 federal adjusted gross income or 
federal taxable income.  
 
Carryforward of Unused Credits 
  
The manufacturing credit is nonrefundable. Any unused credit may be carried forward for up to 15 years. 
 
If there is  a reorganization of  a corporation claiming the  manufacturing  credit, the limitations  provided  by Internal 
Revenue Code (IRC) section 383 may apply to the carryover of any unused credit.  
 
Specific Instructions  
 
Note: If you have qualified production activities income from both manufacturing and agricultural activities, you must 
complete a separate Schedule MA-M and MA-A to compute the credit separately for each activity. 

Answer questions A through D if you must complete lines 1-15g of Schedule MA-M. 
 
For questions A and B, if you have multiple lines of personal and real property, attach additional account and parcel 
numbers on a separate schedule. As an alternative to including a separate schedule detailing the parcel numbers, you 
may also include a copy of the assessment notices received from the Department of Revenue. 
 
Part I Instructions 
 
Line 1: Fill in the amount of your production gross receipts.  
 
"Production gross  receipts" means the gross  receipts from the  lease, rental,  license, sale, exchange, or other 
disposition of "qualified production property". 
 
"Qualified production property" is tangible personal property manufactured in whole or in part by the claimant on 
property that is assessed as manufacturing property under sec. 70.995, Wis. Stats.  
 
Qualified production gross receipts do not include gross receipts income from:  
•  Film production 
•  Producing, transmitting, or distributing electricity, natural gas, or potable water 
•  Constructing real property 
•  Engineering or architectural services performed with respect to constructing real property 
•  The sale of food and beverages prepared by the claimant at a retail establishment 
•  The lease, rental, license, sale, exchange, or other disposition of land 
•  Forgiveness of original Paycheck Protection Program (PPP) loan proceeds, forgiveness of subsequent PPP loan 
  proceeds, emergency grants of economic injury disaster loans (EIDL) and targeted EIDL advances, or any other 
  government grant or loan program. 
 
Below are two examples that illustrate how production gross receipts are computed when  manufacturing occurs 
separately in separate states and when manufacturing occurs and is transferred between states: 

Example 1:  A taxpayer manufactures products in Minnesota and Wisconsin entirely separate from each other, and the 
products never transfer between states.   
 
Production gross receipts only include receipts from sales of products manufactured in Wisconsin. 
 
IC-116 (R. 11-23)                               2                                                        

                                             2023 Schedule MA-M Instructions 

Example 2:  A taxpayer begins manufacturing qualified production property in Illinois and finishes the manufacturing at 
its plant in Wisconsin.   
 
Production gross receipts include sales of all products manufactured in Wisconsin, in whole or in part, even though 
part of the product is manufactured in Illinois. 
 
Line 2: Fill in the cost of goods sold that is allocable to your production gross receipts. 
 
Cost of goods sold  expenses paid  with the original  forgivable  Paycheck Protection Program (PPP) loan  proceeds, 
subsequent forgivable PPP loan proceeds, emergency grants of economic injury disaster loans (EIDL) and targeted 
EIDL advances, subsidies for certain loan payments, grants for shuttered venue operators, grants issued by the state of 
Wisconsin related to the  COVID-19 pandemic  authorized under  42 USC  801, and  grants issued by the Wisconsin 
Economic Development Corporation under the ethnic minority emergency grant program are deducted in determining 
qualified production activities income.   
 
Line 3: Fill in the direct costs allocable to production gross receipts. 
 
"Direct costs" includes all ordinary and necessary expenses paid or incurred during the taxable year in carrying on the 
trade or business that are deductible as business expenses under the Internal Revenue Code and identified as direct 
costs in your managerial or cost accounting records. This includes depreciation expense computed under the IRC in 
effect for Wisconsin that are classified as direct costs.  
 
There are no specific examples of direct costs provided in the statutes because not every business operation will account 
for direct and indirect costs in the same manner.  Because of this variability, the determination of direct costs relies, in 
part, on the taxpayer's accounting records.  
 
In general, direct costs are those costs that directly benefit one specific project or good that is being produced.  Examples 
of direct costs may include production employee wages, supplies consumed directly in the production process, and costs 
of consultants used in producing the finished product. 
 
Direct costs paid with the original forgivable Paycheck Protection Program (PPP) loan proceeds, subsequent forgivable 
PPP loan proceeds, emergency grants of economic injury disaster loans (EIDL) and targeted EIDL advances, subsidies 
for certain loan payments, grants for shuttered venue operators, grants issued by the state of Wisconsin related to the 
COVID-19 pandemic  authorized under 42 USC 801, and grants issued by the Wisconsin Economic Development 
Corporation  under the ethnic minority  emergency grant  program  are deducted  in  determining qualified production 
activities income.   
 
Line 6: Fill in your indirect costs. 
 
"Indirect costs" includes all ordinary and necessary expenses (not just those allocable to production gross receipts) 
paid or incurred during the taxable year in carrying on the trade or business that are deductible as business expenses 
under the Internal Revenue Code, other than cost of goods sold and direct costs, and identified as indirect costs in your  
managerial or cost accounting records.  This includes depreciation  expenses  computed  under the IRC  in  effect for 
Wisconsin that are classified as indirect costs. Like direct costs, there are no specific examples of indirect costs provided 
in  the statutes because  not  every  business operation  will  account for  direct and indirect costs in  the  same 
manner.   Because of this variability, the determination of  indirect costs relies, in part,  on the taxpayer's accounting 
records.  
 
In general, indirect costs are costs that benefit more than one specific project or good that is being produced and cannot 
be easily traced to a single project or good being produced. Examples of indirect costs may include building rent, legal 
expenses, business insurance, advertising expenses, accounting and administrative salaries, office supplies, and certain 
utilities.  
 
Indirect costs paid with the original forgivable Paycheck Protection Program (PPP) loan proceeds, subsequent forgivable 
PPP loan proceeds, emergency grants of economic injury disaster loans (EIDL) and targeted EIDL advances, subsidies 
for certain loan payments, grants for shuttered venue operators, grants issued by the state of Wisconsin related to the 
COVID-19 pandemic  authorized  under 42 USC 801, and grants issued by the Wisconsin Economic Development 
Corporation  under the ethnic minority  emergency grant  program  are deducted  in determining  qualified production 
activities income.   
 
IC-116 (R. 11-23)                                          3                                 

                                           2023 Schedule MA-M Instructions 

Line 8: Fill in all gross receipts of the business.  
 
"Gross receipts" is all gross income from whatever source, except for those items specifically excluded under the Internal 
Revenue Code as adopted by Wisconsin  and  otherwise excluded  under Wisconsin  law. Include  gross sales, gross 
dividends, gross interest income, gross rents, gross royalties, the gross sales price from the disposition of capital assets 
and business assets, gross income from pass-through entities, and all other gross receipts that are included in income 
before apportionment. 
 
Gross receipts do not include forgiveness of original Paycheck Protection Program (PPP) loan proceeds, subsequent 
forgivable PPP loan proceeds, emergency grants of economic injury disaster loans (EIDL) and targeted EIDL advances, 
subsidies for certain loan payments, grants for shuttered venue operators, grants issued by the state of Wisconsin related 
to the COVID-19 pandemic authorized under 42 USC 801, and grants issued by the Wisconsin Economic Development 
Corporation under the ethnic minority emergency grant program. 
 
Note: For individuals, do not include gross receipts or income from sources not related to the business.  For example, 
do not include your spouse's wages earned from an employer, and do not include rental income from an apartment 
building reported on federal Schedule E. 
 
Line 9: Divide the amount on line 7 by the amount on line 8 and multiply that amount by 100. Fill in the result on line 9. 
Carry your decimal to four places, rounding off the fourth position.   
 
Manufacturing Property Factor 
 
Below are two examples that illustrate how production gross receipts are computed when  manufacturing occurs 
separately in separate states and when manufacturing is occurs and is transferred between states: 
 
Example 1:  A taxpayer manufactures products in Minnesota and Wisconsin entirely separate from each other, and the 
products never transfer between states.  
 
The numerator of the manufacturing property factor includes Wisconsin real and personal property that was used to 
manufacture qualified production property. 
 
The denominator of the manufacturing property factor includes Wisconsin real and personal property that was used 
to manufacture qualified production property 
 
The manufacturing property factor does not include any of the Minnesota property because qualified production property 
was not produced in Minnesota. 
 
Example 2: A taxpayer begins manufacturing qualified production property in Illinois and finishes the manufacturing at 
its plant in Wisconsin.   
 
The numerator of the manufacturing property factor includes Wisconsin real and personal property that was used to 
manufacture qualified production property. 
 
The denominator of the manufacturing property factor includes both the Illinois and Wisconsin real and personal 
property that were used to manufacture qualified production property. 
 
The manufacturing property denominator includes the Illinois property because the product was manufactured, in part, 
in Wisconsin, so it is considered qualified production property. 
 
Line 12a: If all of the manufacturing activity occurred in Wisconsin (i.e. products were not first manufactured outside of 
Wisconsin and transferred to Wisconsin for final manufacturing) on property that was assessed as manufacturing under 
sec. 70.995, Wis. Stats., check the box, skip lines 12b and 13, and enter 100.0000 on line 14.  There is no requirement 
to complete the manufacturing property factor on lines 12b and 13 because you are certifying that all manufacturing 
activity took place in Wisconsin. 
 
IC-116 (R. 11-23)                                    4                                             

                                              2023 Schedule MA-M Instructions 

Line 12b: Fill in the average value of your real and personal property and improvements assessed as manufacturing 
property under sec. 70.995, Wis. Stats., owned or rented and used in Wisconsin during the taxable year to manufacture 
qualified production property. 
 
Property owned by the claimant is valued at its original cost and property rented by the claimant is valued at an amount 
equal to the annual rent paid, less any annual rent received from sub-rentals, multiplied by eight (8). 
 
The average value of property is determined by averaging the values at the beginning and ending of the taxable year, 
except that the Secretary of Revenue may require the averaging of monthly values during the taxable year, if such 
averaging is reasonably required to properly reflect the average value of the property. 
 
The amount to enter on line 12b of Schedule MA-M does not come from the assessed value of the manufacturing 
property on the property tax bills.  Instead, the property value is based on the original cost of the property provided on a 
real estate closing statement, purchase invoices, or similar document.    
 
Line 13: Fill in the average value of all of your real and personal property owned or rented during the taxable year and 
used to manufacture qualified production property.    
 
If you are manufacturing  qualified production property in another state and finishing the manufacturing process in 
Wisconsin, the average value of the other states real and personal property that was used to manufacture the qualified 
production property is included on line 13.    
 
The amount to enter on line 13 of Schedule MA-M does not come from the assessed value of the manufacturing property 
on the property tax bills.  Instead, the property value is based on the original cost of the property provided on a real 
estate closing statement, purchase invoices, or similar document.  
 
Line 14: Divide the amount on line 12b by the amount on line 13 and multiply that amount by 100. Fill in the result on 
line 14. Carry your decimal to four places, rounding off the fourth position. 
 
Line 15a: Multiply line 11 by the decimal amount on line 14.  
 
•   If you are a corporation that is required to file its Wisconsin franchise or income tax return on Form 4 or Form 4T,  
    complete lines 15b and 15d.  
•   If you are a corporation required to file Form 6, complete lines 15c and 15d.   
•   Individuals, partnerships, tax-option (S) corporations, and fiduciaries may skip to line 15e after completing line 15a. 
 
Line 15b: If you are a single entity Form 4 or Form 4T filer, fill in the amount from line 11 of Form 4 or line 10 of Form 
4T. 
 
Line 15c: If you are a combined group member filing Form 6,  fill in on line 15c  the Wisconsin net income as computed 
in the instructions for Form 6, Part III as follows: 

      Share of combined unitary income (line 2+3) 
+    Income from separate entity items (line 4) 
-     Net capital loss adjustment (line 5) 
-     Net business loss carryforward (line 7) 
      Wisconsin net income 
 
Line 15d: Corporations filing Form 4 or Form 4T should enter the smaller of lines 15a or 15b. Corporations filing Form 
6 should enter the smaller of lines 15a or 15c. 
 
Line 15e: Individuals, partnerships, tax-option (S) corporations, and fiduciaries should enter the amount from line 15a. 
 
Line 15f - Individuals and fiduciaries: The amount of eligible qualified production activities income that may be claimed 
in computing the manufacturing credit is required to be reduced by the amount of qualified production activities income 
taxed by another state upon which the Wisconsin credit for taxes paid to another state is claimed.   
 
IC-116 (R. 11-23)                                     5                                                                   

                                             2023 Schedule MA-M Instructions 

Enter the amount of eligible qualified production activities income that was taxed by another state and used to claim the 
Wisconsin credit for tax paid to another state.  Do not include partnership or tax-option (S) corporation income on 
this line; it will be accounted for on line 17.   
 
Line 17: Fill in the amount of manufacturing credit passed through from tax-option (S) corporations, partnerships, LLCs 
treated as partnerships, estates, or trusts. The pass-through credit is shown on Schedule 5K-1 for shareholders of tax-
option (S) corporations, Schedule 3K-1 for partners and LLC members, and Schedule 2K-1 for beneficiaries of estates 
or trusts. Fill in the name, federal employer identification number (FEIN), and amount of credit passed through from the 
entity. If you were allocated a credit from more than one pass-through entity, attach a schedule showing each entity's 
name, FEIN, and amount of credit. Fill in the total pass-through credit on line 17. Attach the schedule to Schedule MA-
M.  
 
Limitation when Credit for Tax Paid to Other States is Claimed 
 
The amount of eligible qualified production activities income that may be claimed in computing the manufacturing credit 
is required to be reduced by the amount of qualified production activities income taxed by another state upon which the 
Wisconsin credit for taxes paid to another state is claimed.   
 
When an individual or fiduciary receives the manufacturing credit from a partnership, tax-option (S) corporation, or estate 
or trust, and  the  Wisconsin credit for tax paid to another state is claimed on the same  eligible qualified  production 
activities income, the individual or fiduciary will need to reduce the eligible qualified production activities income by the 
amount used to compute the credit for tax paid to another state.  
 
The partnership, tax-option (S) corporation, and estate or trust is required to inform the partners, shareholders, and 
beneficiaries of their share of the qualified production activities income that is taxable in another state at either the pass-
through level or partner/shareholder/beneficiary level. This information should be provided as an attached statement to 
the Schedules 2K-1, 3K-1, and 5K-1. 
 
Manufacturing Credit Limitation Computation 
 
1. Share of total eligible qualified production activities income             1. ________________ 
2. Share of eligible qualified production activities income upon which the 
    credit for tax paid to another state is claimed                           2. ________________ 
3. Subtract line 2 from line 1                                                3. ________________ 
4. Multiply line 3 by 0.075 (7.5%). This is the manufacturing credit before 
    business income limitation in Part II                                     4. ________________ 
 
Line 18a: Fiduciaries – Prorate the credit from line 18 between the entity and its beneficiaries in proportion to the income 
allocable to each. Show the beneficiaries’ portion of the credit on line 18a. Show the credit for each beneficiary on 
Schedule 2K-1. 
 
Line 18b: Subtract line 18a from line 18. This is the estate’s or trust’s portion of the credit.   
 
Line 19: Enter the amount of manufacturing credit that was not previously used and has not expired. Include Schedule 
CF with your tax return. 
 
Line 21:  Individuals  and  fiduciaries  only:  Complete the  business income limitation table  in Part II. See Part II 
instructions for details on completing the table. The credit, including any credits carried over, may be offset only against 
the amount of the tax imposed upon or measured by the business operations of the claimant on which the credit is 
computed: 
•  For shareholders of a tax-option corporation, the credit may be offset only against the tax imposed on the 
 shareholder's prorated share of the tax-option corporation's income.   
•  For partners of a partnership, the credit may be offset only against the tax imposed on the partner's distributive share 
 of partnership income.  
•  For members of a limited liability company, the credit may be offset only against the tax imposed on the member's 
 distributive share of the limited liability company's income.       

IC-116 (R. 11-23)                                       6                                                                       

                                  2023 Schedule MA-M Instructions 

Line 22: Individuals and fiduciaries should enter the smaller of lines 20 or 21.  All other types of taxpayers should enter 
the amount from line 20. Include Schedule CF with your tax return if the credit was not used in full. 
 
Enter the amount of credit from line 22 on the appropriate line of Schedule CR. See the following exceptions:  
 
• Combined group members – Enter the amount of credit on Form 6, Part V, line 1 instead of Schedule CR. 
 
• Tax-option (S) corporations, partnerships, and LLCs treated as partnerships – Prorate the amount of credit on line 22 
  among the shareholders,  partners, or  members based on  their ownership  interest. Show the credit for each 
  shareholder on Schedule 5K-1 and for each partner or member on Schedule 3K-1. 
 
Part II Instructions 
 
Business Income Limit Computation 

The business income limitation applies to individuals and fiduciaries only. This includes individuals who are a partner in 
a partnership, shareholder in a tax-option (S) corporation, and/or a member of a limited liability company not taxed as a 
corporation.   

Corporations, partnerships, and tax-option (S) corporations should not complete Part II. 

Column b: Enter your tax. Your tax is one of the following: 
 
• Individuals: Form 1, line 12 or Form 1NPR, line 38 multiplied by line 32  
• Estates and Trusts: Form 2, line 6c or Form 4T, line 19.  
Column c:  
 
Individuals, estates, and trusts should fill in the amount of their Wisconsin tax liability computed without regard to any 
amounts of income, deduction, or expense from the business operations in which the credit was computed. You must 
make a separate computation for each pass-through entity or sole proprietorship from which you computed a credit. 
 
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 c is the 
recomputed amount from the following lines: 

• Individuals: Form 1, line 12 or Form 1NPR, line 38 multiplied by line 32. 
• Estates and Trusts: Form 2, line 6c or Form 4T, line 19. 
  
Column d:  

Individuals, estates, and trusts subtract the amount in column c from the amount in column b for each pass-through 
entity or sole proprietorship. 

Column e: 
 
Enter the amount of credit computed that is attributable to the activities of the business that generated the credit. For 
example, if the total credit computed on line 20 is $5,000, but is from multiple businesses, and Business A's portion of 
the credit is $1,000, enter $1,000 in column e for Business A. 
 
 Required Attachments to Return 
 
IC-116 (R. 11-23)                           7                                                                      

                                  2023 Schedule MA-M Instructions 

• For claimants not receiving the credit passed through from a partnership, tax-option(S) corporation, limited liability 
  company, estate, or trust:  The only documentation you are required to include with your tax return is Wisconsin 
  Schedule MA-M. 
• For claimants receiving the credit passed  through from  a partnership, tax-option (S) corporation,  limited liability 
  company,  estate, or trust: You  are required  to  include  Wisconsin  Schedule MA-M  and a  copy  of the Wisconsin 
  Schedule 2K-1, Schedule 3K-1, and/or Schedule 5K-1. 
 
Additional Information 
 
For more information, you may contact any Department of Revenue office or: 

• Refer to the  manufacturing and agriculture credit common questions at:  revenue.wi.gov/Pages/FAQS/ise-
  manufagr.aspx 
• E-mail your question to: DORFranchise@wisconsin.gov. 
• Call (608) 266-2772  
   
                                  Applicable Laws and Rules 
 This document provides statements or interpretations of the following laws and regulations enacted as of December 
 1, 2023:  Chapter 71 Wis. Stats. 

IC-116 (R. 11-23)                                     8