Instructions for 2023 Schedule CM 
 
 Purpose of Schedule CM 
 
 Use Schedule CM to claim the community rehabilitation program credit. The credit must be claimed within four years of the 
 unextended due date of the return. 
 
 Who is Eligible to Claim the Credit 
 
 Any individual, estate or trust, partnership, limited liability company (LLC), corporation, tax-option (S) corporation, or tax 
 exempt organization that enters into a contract with a community rehabilitation program to have the program perform work 
 for the entity may be eligible for the credit. 
 
 Partnerships, LLCs treated as partnerships, and tax-option  (S)  corporations  cannot  claim  the  credit; instead, the credit 
 flows through to the partners, members, or shareholders based on their ownership interests. 
 
 Estates and trusts share the credit with their beneficiaries in proportion to the income allocable to each. 
 
 Credit is Income 
 
 The credit that you compute on Schedule CM is income and must be reported on your Wisconsin franchise or income tax 
 return in the year computed. This is true even if you cannot use the full amount of a credit computed this  year to offset 
 tax liability for this year and must carry part or all of it forward to future years. 
 
 Carryover of Unused Credit 
 
 The community rehabilitation program credit is nonrefundable. Any  unused  credit  may  be  carried  forward for 15 years. If 
 there is a reorganization of a corporation claiming the community rehabilitation program credit, the limitations provided by 
 Internal Revenue Code sec. 383 may apply to the carryover of any unused community rehabilitation program credit. 

 Definitions 
 
 “Community rehabilitation program” means a nonprofit entity, county, municipality, or state or federal agency that directly 
 provides, or facilitates the provision of, vocational rehabilitation services to individuals who have disabilities to maximize the 
 employment opportunities, including career advancement, of such individuals. 
 
 “Vocational rehabilitation services” includes  education, training, employment, counseling,  therapy, placement, and  case 
 management. 
 
 “Work” includes production, packaging, assembly, food service, custodial service, clerical service, and other commercial 
 activities that improve employment opportunities for individuals who have disabilities. 
 
 Specific Instructions 
 
 Caution: Before completing Part I, you must first have the community rehabilitation program complete Part II. Prior to giving 
 Schedule CM to the community rehabilitation program, fill in entity name on line 2 and taxable year on line 3 of Part II. No 
 credit is allowable unless Part II is completed by the community rehabilitation program. 
 
 If you are claiming the credit based  on payments for work performed by more than one community rehabilitation program, 
 a separate Schedule CM must be completed for each. Part II must be completed by each community rehabilitation program for 
 which the credit is being claimed. Complete only lines 1 and 2 of Part I for each additional community rehabilitation program. 
 The amount from line 2 of each additional Schedule CM should be included on line 3 of your first Schedule CM. 
 
 Part I Instructions 
 
 Line 1. Enter the amount paid in the taxable year to a community rehabilitation program to perform work for your business. 
 This is generally the amount from line 6 of Part II if that amount was paid during the  taxable  year. However, do  not  enter 
 more than $500,000 paid for work performed by a community rehabilitation program.        
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                                     2023 Schedule CM Instructions 
 
 Line 3. If you paid an amount to more than one community rehabilitation program to perform work for your business, fill in 
 the amount from line 2 of any additional Schedules CM. 
 
 Line 4. Enter  the  amount  of  community  rehabilitation program credit  passed through from tax-option (S)  corporations, 
 partnerships, LLCs treated as partnerships,  estates,  or  trusts. The  pass-through  credit  is shown  on  Schedule  5K-1  for 
 shareholders  of  tax-option  (S)  corporations,  Schedule  3K-1  for partners  and  LLC  members, and Schedule  2K-1 for 
 beneficiaries of estates or trusts. 
 
 Line 5. Add lines 2, 3, and 4d.  This is your 2023 credit. 
 
 Line 5a. Fiduciaries  –  Prorate the credit  from line  5 between the entity and its beneficiaries in proportion to the income 
 allocable to each. Show the beneficiaries’ portion of the credit on line 5a. Show the credit for each beneficiary on Schedule 
 2K-1. 
 
 Line 5b. Fiduciaries  – Subtract line 5a from line 5. This  is  the  estate’s  or  trust’s portion  of  the  credit. Enter the amount of 
 credit from line 5b on the appropriate line of Schedule CR. 
 
 •  Tax-option (S) corporations, partnerships, and LLCs treated as partnerships should prorate the amount of credit on line 
    5 among the shareholders, partners, or members based on their ownership interest. Show the credit for each shareholder 
    on Schedule 5K-1 and for each partner or member on Schedule 3K-1. 
 
 •  Fiduciaries who file Form 2 must complete lines 5a and 5b. 
 
 Line 7. Add lines 5 and 6 (lines 5b and 6 if fiduciary). Enter the amount of credit from line 7 on the appropriate line of Schedule 
 CR. See the following exceptions: 
  
 •  If the claimant is a combined group member, enter the amount of credit on Form 6, Part V, line 1 instead of Schedule 
    CR. 
 
 Part II Instructions  
 
 The  community  rehabilitation  program  must  complete  Part II  to  verify  that the  claimant  has  entered  a  contract  with  a 
 community rehabilitation program  and  that the  program  has  received  payment from the claimant for work provided by the 
 program. 
 
 Required Attachments to Return 
 
 • For claimants not receiving the credit passed through from  a partnership, tax-option(S) corporation, limited liability 
   company, estate, or trust:    
    o  You  must  include your completed  Schedule  CM with your Wisconsin franchise or income tax return.  
    o  If you made payments to more than one community rehabilitation program, also include any additional Schedules 
         CM with only lines 1 and 2 of Part I and Part II completed. 
 
 • For claimants receiving the credit passed through from a partnership, tax-option (S) corporation, limited liability company, 
   estate, or trust:  
    o  You are required to submit Wisconsin Schedule CM and a copy of the Wisconsin Schedule 2K-1, Schedule 3K-1, 
         and/or Schedule 5K-1 with your Wisconsin franchise or income tax return.  
    o    If you made payments to more than one community rehabilitation program, also include any additional Schedules 
         CM with only lines 1 and 2 of Part I and Part II completed. 
        
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                                          2023 Schedule CM Instructions 
    
 Additional Information 
 
 Web Resources  

 The Department of Revenue’s web page, available at revenue.wi.gov, has several resources to provide additional information 
 and assistance, including: 

 •  Related forms and their instructions  
 •  Common questions  
 •  Publications on specific tax topics 
 •  The Wisconsin Tax Bulletin  
 •  A home page specifically for combined reporting topics 
 •  Links to the Wisconsin Statutes and Administrative Code 

Contact Information  

If you cannot find the answer to your question in the resources available on the Department of Revenue’s web page, contact 
the department using any of the following methods: 
•   E-mail your question to: DORFranchise@wisconsin.gov 
•   Call (608) 266-2772  
    (Telephone help is also available using TTY equipment. Call the Wisconsin Telecommunications Relay System at 711 
    or, if no answer, (800) 947-3529. These numbers are to be used only when calling with TTY equipment.) 
•   Send a fax to (608) 267-0834 
•   Write to the Audit Bureau, Wisconsin Department of Revenue, Mail Stop 3-107, PO Box 8906, Madison, WI  53708-8906 
 
                                          Applicable Laws and Rules 
   This document provides statements or interpretations of the following laws and regulations enacted as of December 1, 
   2023:  Chapter 71 Wis. Stats., and Chapter Tax 2, Wis. Adm. Code 

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