ScheduleEC: ScheduleEC (2024)
Wisconsin · Wisconsin DOR · Used for tax years 2024
Wisconsin Schedule EC is used to compute and claim the 2024 enterprise zone jobs credit. It reports credit certified by the Wisconsin Economic Development Corporation (WEDC), credits passed through from other entities, and any credit allocated by an estate or trust to its benefic
Who files this form
Use Schedule EC to compute and claim the 2024 Wisconsin enterprise zone jobs credit. The credit is available to qualifying taxpayers doing business in a Wisconsin enterprise zone designated by the Wisconsin Economic Development Corporation (WEDC). Businesses must first be certified by WEDC.
- Individuals, estates, trusts, partnerships, LLCs, corporations, and tax-exempt organizations conducting business in an enterprise zone and certified by WEDC may be eligible to compute the credit.
- Individuals and corporations may claim the credit.
- 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 an entity-level election: an S corporation or partnership making that election may not pass through the credit.
- Fiduciaries filing Form 2 must allocate the credit between the estate or trust and its beneficiaries.
What you'll need
Include these items with your Wisconsin franchise or income tax return:
- Schedule EC.
- A copy of your WEDC certification to claim tax benefits.
- Verification of expenses from WEDC.
If you received the credit through an S corporation, partnership, LLC treated as a partnership, estate, or trust, include Schedule 5K-1, 3K-1, or 2K-1 with Schedule EC instead of the WEDC certification and expense verification. You will need the entity's name, Federal Employer Identification Number (FEIN), and credit amount to complete line 2.
How to file
File Schedule EC with Wisconsin Form 1, 1NPR, 2, 3, 4, 4T, 5S, or 6, as applicable, and include the required attachments.
- Enter the credit certified to you by WEDC 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, enter this credit on the appropriate line of Schedule CR. Combined group members use Form 6, Part III, line 13 instead.
- For credits passed through by an S corporation, partnership, or LLC treated as a partnership, allocate the credit based on ownership interest and report each owner's share on Schedule 5K-1 or 3K-1. Do not pass through a credit claimed under an entity-level election.
- Fiduciaries filing Form 2 complete lines 3a and 3b, report beneficiaries' shares on Schedule 2K-1, and enter the estate's or trust's share from line 3b on Schedule CR.
The text does not provide a filing mailing address or e-filing directions.
Common mistakes
- Leaving the credit out of income. The credit computed on Schedule EC is income and must be reported on your Wisconsin franchise or income tax return in the year computed.
- Using the same expenses for another credit. The enterprise zone jobs credit is not allowed for expenditures included in the basis for another Wisconsin income or franchise tax credit, such as the research expense credit.
- Passing through a credit claimed at the entity level. An S corporation or partnership making an entity-level election may not pass that credit through on Schedules 5K-1 or 3K-1.
- Claiming a false credit recklessly or fraudulently. You may become ineligible to claim the credit for up to 10 years and may owe a penalty.
- Not rounding amounts. The form directs you to round amounts to the nearest dollar.
Questions people ask
What is the credit based on?
The credit computation is based on job creation, job retention, capital investment, training, and supply chain purchases.
Where do I get information about WEDC certification?
Visit inwisconsin.com or call 1-855-469-4249 for information about becoming certified.
What if I receive the credit from another entity?
Report the entity's name, FEIN, and passed-through credit amount on line 2. Include the applicable Schedule 5K-1, 3K-1, or 2K-1 with Schedule EC instead of WEDC certification and expense verification.
How do estates and trusts divide the credit?
Fiduciaries prorate the credit between the entity and its beneficiaries in proportion to the income allocable to each. The beneficiaries' portion goes on line 3a, and the estate's or trust's remaining portion goes on line 3b.
Where can I ask questions about Schedule EC?
Email DORFranchise@wisconsin.gov or call (608) 266-2772.