ScheduleBD: ScheduleBD (2024)
Wisconsin · Wisconsin DOR · Used for tax years 2024
Wisconsin Schedule BD is used to calculate and claim the refundable business development credit. It reports credit amounts certified by the Wisconsin Economic Development Corporation (WEDC), credits passed through from other entities, and any amounts allocated to estate or trust
Who files this form
Use 2024 Schedule BD to claim Wisconsin’s refundable business development credit. Qualifying taxpayers certified by the Wisconsin Economic Development Corporation (WEDC) may be eligible, including individuals, estates, trusts, LLCs, corporations, and tax-exempt organizations.
Partnerships, LLCs treated as partnerships, and tax-option (S) corporations generally pass the credit through to their partners, members, or shareholders. The instructions also address certain elections to claim the credit at the entity level.
Shareholders, partners, members, and beneficiaries receiving a passed-through credit also use Schedule BD.
What you'll need
Include these with your Wisconsin franchise or income tax return:
- Completed Schedule BD.
- A copy of your WEDC certification/verification to claim tax benefits.
If you receive the credit through another entity, include the applicable Schedule 5K-1, 3K-1, or 2K-1 with Schedule BD instead of the WEDC certification/verification.
For passed-through credits, have each entity’s name, Federal Employer Identification Number (FEIN), and credit amount available. Use an additional schedule for pass-through credits beyond the entries on lines 2a and 2b.
How to file
File Schedule BD with Wisconsin Form 1, 1NPR, 2, 3, 4, 4T, 5S, or 6, as applicable, and include the required attachments.
- Enter the WEDC-certified credit on line 1.
- Enter passed-through credits on lines 2a through 2c, and total them on line 2d.
- Add lines 1 and 2d on line 3.
- Generally, enter the line 3 credit on the appropriate line of Schedule CR. Combined group members instead enter it on Form 6, Part III, line 13.
Pass-through entities generally allocate the credit by ownership interest and report it on Schedule 5K-1 or 3K-1. Fiduciaries filing Form 2 must complete lines 3a and 3b.
The supplied text does not specify a mailing address or electronic filing method.
Common mistakes
- Skipping the instructions or rounding requirement. Read the instructions before completing Schedule BD and round amounts to the nearest dollar.
- Claiming a false credit. Reckless or fraudulent claims may result in a penalty and ineligibility to claim the credit for up to 10 years.
- Passing through a credit after electing to claim it at the entity level. A tax-option (S) corporation or partnership making the election described in the instructions may not also pass that credit through on Schedules 5K-1 or 3K-1.
Questions people ask
Is the business development credit refundable?
Yes. Schedule BD is used to claim the refundable business development credit.
Must I report the credit as income?
Yes. The credit computed on Schedule BD is income and must be reported on your Wisconsin franchise or income tax return in the year computed.
Where can I learn about WEDC certification?
Visit inwisconsin.com or call 1-855-469-4249 for information about becoming certified.
How does an estate or trust divide the credit with beneficiaries?
Prorate the line 3 credit between the entity and its beneficiaries in proportion to the income allocable to each. Enter the beneficiaries’ portion on line 3a and report each beneficiary’s credit on Schedule 2K-1. Subtract line 3a from line 3 to get the estate’s or trust’s portion on line 3b, then enter that amount on Schedule CR.