Instructions for 1998 Schedule DC
Items to Note
Who Is Eligible to Claim the Credit
For taxable years beginning on or after January 1, 1998, the
Any individual, estate, trust, partnership, limited liability com-
following changes apply:
pany (LLC), corporation, or tax-exempt organization that is
conducting business in a development zone and has been
•
The jobs credit, sales tax credit, investment credit,
certified by the Department of Commerce may be eligible for
research credit, location credit, day care credit, and
the credit.
environmental remediation credit have been discontin-
ued. Instead, persons doing business in development
Partnerships, LLCs treated as partnerships, and tax-option
zones, development opportunity zones, or enterprise
(S) corporations cannot claim the credit, but the credit
development zones may be eligible for the new Wiscon-
attributable to the entity’s business operations passes
sin development zones credit. This new credit is based
through to the partners, members, or shareholders.
on certain expenditures for environmental remediation
and for job creation or retention.
How to Claim the Credit
•
Generally, unused jobs, sales tax, investment, research,
You claim the credit by completing Schedule DC and entering
location, day care, and environmental remediation
the amounts on the Wisconsin franchise or income tax return
credits computed in taxable years that begin before
that you file. You must attach Schedule DC to your tax return.
January 1, 1998, may be carried forward to years that
In addition, you must attach a copy of your certification to
begin on or after January 1, 1998.
claim tax benefits and the verification of your expenses,
which you obtain from the Department of Commerce. Share-
holders of tax-option (S) corporations, partners of partner-
Purpose of Schedule DC
ships, members of LLCs treated as partnerships, and
Use Schedule DC to claim the special tax credit that may be
beneficiaries of estates and trusts attach a copy of Schedule
available for persons doing business in Wisconsin develop-
5K-1, 3K-1, or 2K-1, as appropriate, to Schedule DC instead
ment, development opportunity, or enterprise development
of the certification to claim tax benefits and verification of
zones. The tax credit is nonrefundable, but may be carried
expenses.
forward for up to 15 taxable years.
Individuals (including tax-option (S) corporation shareholders,
The Wisconsin Department of Commerce administers the
partners, members of LLCs treated as partnerships, and
development zones programs. To participate in one of these
beneficiaries of estates or trusts) should see the Wisconsin
programs, businesses must first be certified by the Depart-
Form 1 or Form 1NPR instructions for special instructions for
ment of Commerce.
claiming the credit.
The designation of a geographical area as a development
Estates or trusts share the credit among themselves and their
zone is dependent upon the degree of unemployment,
beneficiaries in proportion to the income allocable to each.
average income level, average property value, number of job
See the Wisconsin Form 2 instructions for special instructions
layoffs, and other criteria within the area. Once an area is
for claiming the credit. In addition, the estate or trust must
designated as a development zone, persons conducting
complete Schedules 2K-1 showing the credit for each
business in the zone may be eligible to claim the tax credit.
beneficiary.
The designation of a geographical area as an enterprise
Partnerships and LLCs treated as partnerships should
development zone is dependent upon the degree of unem-
complete the appropriate lines of Schedule 3K on Form 3 and
ployment, average income level, property values, number of
Schedules 3K-1 so that the partners or LLC members may
job layoffs, and other criteria within the area. Once an area is
claim their share of the credit.
designated as an enterprise development zone, the person
conducting business in the zone may be eligible to claim the
Corporations (other than tax-option (S) corporations) should
tax credit.
complete the appropriate line on the Wisconsin corporate
franchise or income tax return, Form 4, 4I, or 5.
For more information regarding eligibility in the Wisconsin
development zones programs, call (608) 266-3751 or write to
Tax-option (S) corporations should complete the appropriate
the Division of Community Development, Wisconsin Depart-
line of Schedule 5K on Form 5S and Schedules 5K-1 so that
ment of Commerce, P.O. Box 7970, Madison, WI 53707-
the shareholders may claim their share of the credit.
7970.
IC-132
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