Instructions For 2016 Schedules R - Wisconsin Research Credits Page 3
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42016 Schedule R Instructions
wages that were used in computing the federal work op-
Line 12. Check the appropriate box to indicate which re-
portunity tax credit.
search credit you are computing. However, if you
checked the box on line 9 because you did not have
Line 2. Enter the cost of supplies used in the conduct of
qualified research expenses in one or more of the prior
qualified research in Wisconsin. “Supplies” are tangible
three years, skip line 12 and check the appropriate box
property other than land, improvements to land, or de-
on line 13 instead.
preciable property whether or not you take a deprecia-
tion deduction for it.
Do not check more than one box on line 12. If you
qualify to compute more than one research credit,
Line 3. Enter the amount paid for the rental or lease of
complete a separate Schedule R for each credit.
computers used in qualified research in Wisconsin. Re-
duce this amount by the amount that you received for the
Line 13. If you checked the box on line 9 because you
right to use substantially identical property.
did not have qualified research expenses in one or more
of the three prior years, check the box to indicate which
Line 4. Enter 65% of amounts paid under a contract for
credit you are computing.
qualified research performed in Wisconsin by someone
other than your employee. Prepaid contract research ex-
Do not check more than one box on line 13. If you
penses are considered paid in the year the research is
qualify to compute more than one research credit,
actually done.
complete a separate Schedule R for each credit.
Use 75% for payments made to a qualified research con-
Line 15. Fill in the amount of research credit passed
sortium in Wisconsin. A qualified research consortium is
through from tax-option (S) corporations, partnerships,
a tax-exempt organization described in IRC section
LLCs treated as partnerships, estates, or trusts. The
501(c)(3) or (6) that is organized and operated primarily
pass-through credit is shown on Schedule 5K-1 for share-
to conduct scientific research and is not a private foun-
holders of tax-option (S) corporations, Schedule 3K-1 for
dation.
partners and LLC members, and Schedule 2K-1 for ben-
eficiaries of estates or trusts. Fill in the name, federal em-
Line 5. Enter any expenses used in computing the fed-
ployer identification number (FEIN), and amount of credit
eral orphan drug credit that are Wisconsin qualified re-
passed through from the entity. If you were allocated a
search expenses.
credit from more than two pass-through entities, attach a
Line 7. Enter the amount of any wages included on line
schedule showing each entity's name, FEIN, and amount
6 that qualify for the Wisconsin development zones jobs
of the credit. Fill in the total pass-through credit from the
credit. These wages may not be used in determining the
addition schedule on line 15c and attach the schedule to
Wisconsin research credit.
Schedule R.
Line 16a. Fiduciaries – Prorate the credits from line 16
Line 9. On lines 9a through 9c, enter the qualified re-
between the entity and its beneficiaries in proportion to
search expenses for the years indicated. If you did not
the income allocable to each. Show the beneficiaries’
have qualified research expenses in one or more of the
portion of the credit on line 16a. Show the credit for
three prior years, check the box on line 9, do not com-
each beneficiary on Schedule 2K-1.
plete lines 9a through 9e, and enter 0 on line 10.
Line 16b. Subtract line 16a from line 16. This is the es-
For example, if you had qualified research expenses in
tate’s or trust’s portion of the credit.
2015 and 2014, but not 2013, do not average your prior
year's research expenses. You must use the credit per-
Line 17. Enter the research credit from prior taxable
centage from line 13a, 13b, or 13c.
years that was not used to offset your tax liability in those
years and has not expired under the 15 year carryfor-
ward limitation.
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