ScheduleBD: ScheduleBD (2025)
Wisconsin · Wisconsin DOR · Used for tax years 2025
Wisconsin Schedule BD is used to calculate and claim the refundable business development credit for 2025. It reports credit certified by the Wisconsin Economic Development Corporation (WEDC), credit passed through from other entities, and any credit allocated to estate or trust b
Who files this form
Use Schedule BD to claim Wisconsin’s refundable business development credit. Qualifying taxpayers certified by the Wisconsin Economic Development Corporation (WEDC) may be eligible.
Eligible taxpayers may include individuals, estates, trusts, LLCs, corporations, and tax-exempt organizations. Shareholders, partners, members, and beneficiaries receiving a passed-through credit also use Schedule BD.
Partnerships, LLCs treated as partnerships, and tax-option (S) corporations generally pass the credit through to their owners rather than claim it themselves. The instructions also describe an entity-level election for certain S corporations and partnerships. An entity making that election may not pass through the same credit.
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 received the credit from an S corporation, partnership, LLC treated as a partnership, estate, or trust, include the applicable Schedule 5K-1, 3K-1, or 2K-1 with Schedule BD instead of the WEDC certification/verification.
For passed-through credits, you will need each entity’s name, Federal Employer Identification Number (FEIN), and credit amount. Line 2c provides space for the total of credits listed on an additional schedule.
How to file
File Schedule BD with Wisconsin Form 1, 1NPR, 2, 3, 4, 4T, 5S, or 6, as applicable. Include the required attachments with your return.
- Enter your WEDC-certified credit on line 1.
- Enter any passed-through credits on lines 2a through 2c and total them on line 2d.
- Add lines 1 and 2d on line 3. Generally, transfer this amount to the appropriate line of Schedule CR.
Special rules apply:
- Combined group members enter the credit on Form 6, Part III, line 13 instead of Schedule CR.
- S corporations, partnerships, and LLCs treated as partnerships generally allocate the credit by ownership interest and report it on Schedule 5K-1 or 3K-1. The entity-level election exception prohibits passing through the credit.
- Fiduciaries filing Form 2 complete lines 3a and 3b. Report beneficiaries’ shares on Schedule 2K-1 and transfer the estate’s or trust’s share from line 3b to Schedule CR.
The text does not provide a mailing address or e-filing directions.
Common mistakes
- Read the instructions before completing Schedule BD and round amounts to the nearest dollar.
- Include the required WEDC certification/verification, or the applicable Schedule K-1 for a passed-through credit.
- Do not pass through a credit if an S corporation or partnership has made the entity-level election described in the instructions.
- Do not recklessly or fraudulently claim a false credit. The instructions warn that you may lose eligibility for up to 10 years and may owe a penalty.
Questions people ask
Is the business development credit refundable?
Yes. Schedule BD is used to claim the refundable business development credit.
Do I have to 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.
How can I learn about WEDC certification?
Visit inwisconsin.com or call 1-855-469-4249 for information about becoming certified.
How do estates and trusts divide the credit?
Fiduciaries allocate the 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. Line 3b is the estate’s or trust’s portion.
Where can I ask questions about Schedule BD?
Email DORFranchise@wisconsin.gov or call (608) 266-2772.