Instructions for 2024 Schedule ES 
                                         
Purpose of Schedule ES 
 
Use Schedule ES to claim the non-refundable employee college savings account contribution tax credit. 
 
Who is Eligible to Claim the Credit 
 
A sole proprietor, partner of a partnership, a member of a limited liability company (LLC),  a corporation, or a 
shareholder of a tax-option (S) corporation that is an employer and contributes to an employee's college savings 
account is eligible for the credit.  Estate and trusts are not eligible to compute the credit. 
 
Partnerships, limited liability companies, and tax−option corporations may not claim the credit, but the eligibility 
and amount of the credit are based on the amount they paid into a college savings account owned by the employee 
in the taxable year the contribution is made. A partnership, limited liability company, or tax−option corporation 
computes the amount of credit that each of its partners, members, or shareholders may claim and provides that 
information to them. Partners, members of limited liability companies, and shareholders of tax−option corporations 
may claim the credit in proportion to their ownership interests. 
 
Definitions 
 
• “Claimant” means an individual who files a claim under this subsection and who is a sole proprietor, partner 
  of a partnership, member of a limited liability company, or shareholder of a tax−option corporation that is an 
  employer and that contributes to an employee’s college savings account under par. (b). 
• “College savings account” means a college savings account, as described in sec. 224.50, Wis. Stats. 
• “Employee” has the meaning given in sec. 71.63 (2), Wis. Stats.     
• “Employer” means a person for whom an individual performs or performed any service as an employee of that 
  person and who is required to furnish a W-2 form to the employee for federal income tax purposes. 
 
Credit Computation 
 
The credit may be computed for each employee of the employer equal to the amount the employer paid into a 
college savings account owned by the employee in the taxable year in which the contribution is made.   
 
The  maximum  credit  per  employee  is  equal  to  50  percent  of  the  amount  the  employer  contributed  to  the 
employee’s college savings account, not to exceed a maximum credit of $800.. 
 
A credit may be claimed only if, for federal income tax purposes, the compensation of the employee is reported, 
or required to be reported, on a W-2 form issued by the claimant.    
 
The credit must be claimed within four years of the unextended due date of your return. 
 
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                                    2024 Schedule ES Instructions 
                                            
Complete the following worksheet (separately for each employee) that you made contributions to a college savings 
account owned by the employee: 

  1  Enter contributions made in 2024 to your employees' college savings account, 
  1 _______________.00 
  2  Multiply line 1 by %50 (.50)2 _______________.00 
  3  Enter        the    smaller of line 2            or           $800. This     is   the             allowable 
  credit…………………………………………………………… ……..……….3 _______________.00 
   
Enter the total from line 3 of all worksheets on Schedule ES, line 2. 
 
Credit is Income 
 
The credit you compute on Schedule ES is income and must be reported on your Wisconsin franchise or income 
tax return in the year the credit was computed. This is true even if you cannot use the full amount of the credit 
computed this year to offset tax liability for this year and must carry part or all of it forward to future years.   
 
Carryforward of Unused Credits 
 
The employee college savings account contribution credit is nonrefundable. Any unused credit may be carried 
forward for up to 15 years.  
 
If there is a reorganization of a corporation claiming the credit, the limitations provided by Internal Revenue Code 
(IRC) section 383 may apply to the carryover of any unused credit. 
 
Specific Instructions 
 
Line 1:  Enter the number of employees that you made eligible college savings account contribution credits for 
during the taxable year. 
 
Line 2:  Enter the total credit computed for all employees from the total of all worksheets above.   
 
Line 3:  If applicable, fill in the entity name, Federal Employer Identification Number (FEIN), and the amount of 
employee  college  savings  account  contribution  credit  passed  through  from  tax-option  (S)  corporations  (from 
Schedule 5K-1) and partnerships and LLCs treated as partnerships (from Schedule 3K-1). 
 
Line 4:  Add lines 2 and 3d.  This is the 2024 employee college savings account contribution credit.   
 
Line 5:  Enter the amount of employee college savings account contribution credit that was not previously used 
and has not expired. Include Schedule CF with your tax return.  
 
Line 6:  Add lines 4 and 5.  This is the available employee college savings account contribution credit.  Enter the 
amount of credit from line 6 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. 
• Tax-option (S) corporations, partnerships, and LLCs treated as partnerships should prorate the amount of 
  credit on line 4 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.   
 
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                                2024 Schedule ES Instructions 
                                             
Required Attachments to Returns 
 
• For claimants not receiving the credit passed through from a partnership, tax-option(S) corporation, or limited 
  liability company:  
  o  The only documentation you are required to include with your tax return is Wisconsin Schedule ES.  
 
• For claimants receiving the credit passed through from a partnership, tax-option (S) corporation, or limited 
  liability company:  
  o  Submit Wisconsin Schedule ES and,  
  o  A copy of the Wisconsin Schedule 3K-1 and/or Schedule 5K-1.  
 
Additional Information 
 
For more information, you may: 
 
• E-mail your question to: DORFranchise@wisconsin.gov 
• Call (608) 266-2772 [TTY: Call the Wisconsin Telecommunications Relay System at 711. If no answer, dial 
  1-800-947-3529] 
• Send a FAX to (608) 267-0834 

                                Applicable Laws and Rules 
  This  document  provides  statements  or  interpretations  of  the  following  laws  and  regulations  enacted  as  of 
  November 8, 2024:  Chapter 71 Wis. Stats. 

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