AB100-SA47,7,13
171.06 (2s) (d) For taxable years beginning after December 31, 2000, and before
2January 1, 2006,
with respect to nonresident individuals, including individuals
3changing their domicile into or from this state, the tax brackets under subs. (1p) and
4(2) (g) and (h) shall be multiplied by a fraction, the numerator of which is Wisconsin
5adjusted gross income and the denominator of which is federal adjusted gross
6income. In this paragraph, for married persons filing separately "adjusted gross
7income" means the separate adjusted gross income of each spouse, and for married
8persons filing jointly "adjusted gross income" means the total adjusted gross income
9of both spouses. If an individual and that individual's spouse are not both domiciled
10in this state during the entire taxable year, the tax brackets under subs. (1p) and (2)
11(g) and (h) on a joint return shall be multiplied by a fraction, the numerator of which
12is their joint Wisconsin adjusted gross income and the denominator of which is their
13joint federal adjusted gross income.
AB100-SA47, s. 1202o 14Section 1202o. 71.06 (2s) (e) of the statutes is created to read:
AB100-SA47,8,215 71.06 (2s) (e) For taxable years beginning after December 31, 2005, with
16respect to nonresident individuals, including individuals changing their domicile
17into or from this state, the tax brackets under subs. (1q) and (2) (i) and (j) shall be
18multiplied by a fraction, the numerator of which is Wisconsin adjusted gross income
19and the denominator of which is federal adjusted gross income. In this paragraph,
20for married persons filing separately "adjusted gross income" means the separate
21adjusted gross income of each spouse, and for married persons filing jointly "adjusted
22gross income" means the total adjusted gross income of both spouses. If an individual
23and that individual's spouse are not both domiciled in this state during the entire
24taxable year, the tax brackets under subs. (1q) and (2) (i) and (j) on a joint return shall
25be multiplied by a fraction, the numerator of which is their joint Wisconsin adjusted

1gross income and the denominator of which is their joint federal adjusted gross
2income.".
AB100-SA47,8,3 34. Page 588, line 3: after that line insert:
AB100-SA47,8,4 4" Section 1318e. 71.125 of the statutes is amended to read:
AB100-SA47,8,9 571.125 Imposition of tax. (1) Except as provided in sub. (2), the tax imposed
6by this chapter on individuals and the rates under s. 71.06 (1), (1m), (1n), (1p), (1q),
7and (2) shall apply to the Wisconsin taxable income of estates or trusts, except
8nuclear decommissioning trust or reserve funds, and that tax shall be paid by the
9fiduciary.
AB100-SA47,8,14 10(2) Each electing small business trust, as defined in section 1361 (e) (1) of the
11Internal Revenue Code, is subject to tax at the highest rate under s. 71.06 (1), (1m),
12(1n) or, (1p), or (1q), whichever taxable year is applicable, on its income as computed
13under section 641 of the Internal Revenue Code, as modified by s. 71.05 (6) to (12),
14(19), and (20).
AB100-SA47, s. 1318s 15Section 1318s. 71.17 (6) of the statutes is amended to read:
AB100-SA47,8,1916 71.17 (6) Funeral trusts. If a qualified funeral trust makes the election under
17section 685 of the Internal Revenue Code for federal income tax purposes, that
18election applies for purposes of this chapter and each trust shall compute its own tax
19and shall apply the rates under s. 71.06 (1), (1m), (1n) or , (1p), or (1q).".
AB100-SA47,8,20 205. Page 614, line 11: after that line insert:
AB100-SA47,8,21 21" Section 1343g. 71.25 (9) (a) of the statutes is amended to read:
AB100-SA47,9,822 71.25 (9) (a) The sales factor is a fraction, the numerator of which is the total
23sales of the taxpayer in this state during the tax period, and the denominator of
24which is the total sales of the taxpayer everywhere during the tax period. For sales

1of tangible personal property, the numerator of the sales factor is the sales of the
2taxpayer during the tax period under par. (b) 1. and 2. plus 50% of the sales of the
3taxpayer during the tax period under pars. (b) 2m. and 3. and (c). For purposes of
4determining the numerator of the sales factor for a member of a combined reporting
5group under s. 71.255 (7), "taxpayer" means the member of a combined reporting
6group, as defined in s. 71.255 (1) (c), that transferred title to tangible personal
7property or, for sales other than sales of tangible personal property, that made the
8sale.
".
AB100-SA47,9,9 96. Page 616, line 12: after that line insert:
AB100-SA47,9,10 10" Section 1349e. 71.255 of the statutes is created to read:
AB100-SA47,9,11 1171.255 Combined reporting. (1) Definitions. In this section:
AB100-SA47,9,1512 (a) "Brother-sister parent corporation" means a parent corporation that is a
13member of a commonly controlled group, if any members of the commonly controlled
14group are not connected to the parent corporation by stock ownership or interest
15ownership as described in par. (d).
AB100-SA47,9,1816 (b) "Combined report" means a form prescribed by the department that
17specifies the income of each taxpayer member of a commonly controlled group
18operating as a unitary business.
AB100-SA47,9,2019 (c) "Combined reporting group" means the members of a commonly controlled
20group that are included in a combined report under sub. (2).
AB100-SA47,9,2221 (d) "Commonly controlled group" means any of the following, but does not
22include an insurer that is exempt from taxation under s. 71.45 (1):
AB100-SA47,9,2423 1. A parent corporation and any corporation or chain of corporations that are
24connected to the parent corporation by direct or indirect ownership by the parent

1corporation if the parent corporation owns stock representing more than 50 percent
2of the voting power of at least one of the connected corporations or if the parent
3corporation or any of the connected corporations own stock that cumulatively
4represents more than 50 percent of the voting power of each of the connected
5corporations.
AB100-SA47,10,86 2. Any 2 or more corporations if a common owner directly or indirectly owns
7stock representing more than 50 percent of the voting power of the corporations or
8the connected corporations.
AB100-SA47,10,129 3. A partnership or limited liability company if a parent corporation or any
10corporation connected to the parent corporation by common ownership directly or
11indirectly owns more than a 50 percent interest in the capital and profits of the
12partnership or limited liability company.
AB100-SA47,10,1413 4. Any 2 or more corporations if stock representing more than 50 percent of the
14voting power in each corporation is interest that cannot be separately transferred.
AB100-SA47,10,1915 5. Any 2 or more corporations if stock representing more than 50 percent of the
16voting power in each corporation is directly owned by, or for the benefit of, family
17members. In this subdivision, "family member" means an individual related by
18blood, marriage, or adoption within the 2nd degree of kinship as computed under s.
19852.03 (2), 1995 stats., or the spouse of such an individual.
AB100-SA47,10,2420 6. A corporation, partnership, or limited liability company if a parent
21corporation or any corporation connected to the parent corporation by common
22ownership does not hold more than a 50 percent ownership interest in the
23corporation, partnership, or limited liability company but effectively controls the
24corporation, partnership, or limited liability company.
AB100-SA47,10,2525 (e) "Corporation" has the meaning given in s. 71.22 (1) or 71.42 (1).
AB100-SA47,11,1
1(f) "Department" means the department of revenue.
AB100-SA47,11,42 (g) "Designated agent" means the taxpayer member of a commonly controlled
3group that files a group return on behalf of the taxpayer members of a combined
4reporting group.
AB100-SA47,11,65 (h) "Group return" means a tax return filed on behalf of the taxpayer members
6of a combined reporting group.
AB100-SA47,11,97 (i) "Intercompany transaction" means a transaction between corporations,
8partnerships, or limited liability companies that become members of the same
9combined reporting group immediately after the transaction.
AB100-SA47,11,1110 (im) "Partnership" means any entity considered a partnership under section
117701 of the Internal Revenue Code.
AB100-SA47,11,1412 (j) "Separate return" means a return filed by a corporation, regardless of
13whether the corporation is a member of a combined reporting group or is required
14to file a tax return under s. 71.24 or 71.44.
AB100-SA47,11,1715 (k) "Taxpayer member" means a corporation that is subject to tax under s. 71.23
16(1) or (2) or 71.43, that is a member of a combined reporting group, and that files a
17combined report under this section.
AB100-SA47,11,2318 (L) "Top-tier corporation" means a member of a commonly controlled group
19that is not connected with a parent corporation by stock ownership or interest
20ownership as described in par. (d), is a parent corporation, or is a brother-sister
21parent corporation, regardless of whether it is doing business in this state or deriving
22income from sources in this state, and regardless of whether its income and
23apportionment factors are excluded from a combined report filed under this section.
AB100-SA47,12,724 (m) "Unitary business" includes the business activities or operations of an
25entity that are of mutual benefit to, integrated with, or dependent upon or that

1contribute to activities of at least one other entity, including transactions that serve
2an operational function, as determined by the department. Two or more businesses
3are presumed to be a unitary business if the businesses have unity of ownership,
4operation, and use as indicated by centralized management or a centralized
5executive force; centralized purchasing, advertising, or accounting; intercorporate
6sales or leases; intercorporate services; intercorporate debts; intercorporate use of
7proprietary materials; interlocking directorates; or interlocking corporate officers.
AB100-SA47,12,16 8(2) Corporations required to use combined reporting. (a) Except as provided
9in par. (b), and subject to sub. (6), a corporation that is subject to the tax imposed
10under s. 71.23 (1) or (2) or 71.43, that is a member of a commonly controlled group,
11and that is engaged, in whole or in part, in a unitary business with one or more
12members of the commonly controlled group shall compute the corporation's income
13attributable to this state by using the income computation under s. 71.26 or 71.45,
14the apportionment formula under s. 71.25 (6) or 71.45, and the tax credits under s.
1571.28 or 71.47 of all of the following that are members of the commonly controlled
16group:
AB100-SA47,12,2117 1. Any corporation organized or incorporated under the laws of the United
18States, any state of the United States, the District of Columbia, the Commonwealth
19of Puerto Rico, any possession of the United States, or any political subdivision of the
20United States, including corporations under sections 931 to 936 of the Internal
21Revenue Code.
AB100-SA47,12,23222. Any domestic international sales corporation under sections 991 to 994 of the
23Internal Revenue Code.
AB100-SA47,12,25243. Any foreign sales corporation under sections 921 to 927 of the Internal
25Revenue Code.
AB100-SA47,13,2
14. Any export trade corporation under sections 970 and 971 of the Internal
2Revenue Code.
AB100-SA47,13,73 5. Any corporation, regardless of its place of incorporation if the average of its
4property factor under s. 71.25 (7) and its payroll factor under s. 71.25 (8), for property
5and payroll within the United States and computed on an annual basis, is at least
620 percent during any part of the taxable year that a corporation is a member of the
7commonly controlled group.
AB100-SA47,13,118 6. Any corporation not described in subds. 1. to 5. to the extent of the
9corporation's income within the United States and the corporation's property factor
10under s. 71.25 (7) and payroll factor under s. 71.25 (8) assignable to a location within
11the United States.
AB100-SA47,13,2212 (b) A corporation that is subject to the tax imposed under s. 71.23 (1) or (2) or
1371.43, that is a member of a commonly controlled group, and that is engaged, in whole
14or in part, in a unitary business with one or more members of the commonly
15controlled group may, subject to sub. (6), compute the corporation's income
16attributable to this state by using the income computation under s. 71.26 or 71.45,
17the apportionment formula under s. 71.25 (6) or 71.45, and the tax credits under s.
1871.28 or 71.47 of all the members of the commonly controlled group, regardless of the
19country in which any member of the commonly controlled group is organized or
20incorporated or conducts business, if all top-tier corporations that are members of
21the commonly controlled group elect under sub. (3) to compute the corporation's
22income as provided under this paragraph.
AB100-SA47,14,5 23(3) Computation election. (a) A top-tier corporation that is a member of a
24commonly controlled group may elect on the commonly controlled group's behalf, and
25in the manner prescribed by the department, to compute the income of each

1corporation that is a member of the commonly controlled group under sub. (2) (b).
2If more than one member of the commonly controlled group is a top-tier corporation,
3an election under this subsection is not effective unless all top-tier corporations elect
4on the commonly controlled group's behalf, and in the manner prescribed by the
5department, to compute income under sub. (2) (b).
AB100-SA47,14,136 (b) A top-tier corporation shall file an election made under par. (a) with the
7department before the last day of the taxable year. The top-tier corporation shall
8designate a taxable year that corresponds with the taxable year of any taxpayer
9member that is subject to the tax imposed under s. 71.23 (1) or (2) or 71.43. If the
10top-tier corporation fails to file the election before the last day of the taxable year
11designated under this paragraph, all members of the commonly controlled group to
12which the top-tier corporation belongs, including the top-tier corporation, shall
13compute income under sub. (2) (a).
AB100-SA47,14,2414 (c) Except as provided under par. (d), the members of the commonly controlled
15group subject to an election under this subsection shall compute their income under
16sub. (2) (b) for 7 taxable years, beginning with the taxable year designated under par.
17(b). Thereafter, the members of the commonly controlled group shall compute their
18income under sub. (2) (b) for periods of 7 taxable years and until any top-tier
19corporation that is a member of the commonly controlled group notifies the
20department, in a manner prescribed by the department, before the last day of the last
21taxable year in any period of 7 taxable years that the top-tier corporation is
22terminating the election under this subsection. A termination under this paragraph
23takes effect on the first day of the first taxable year beginning after the top-tier
24corporation notifies the department under this paragraph.
AB100-SA47,15,5
1(d) The department may grant a request by a top-tier corporation to terminate
2an election under this subsection before the first period of 7 taxable years under par.
3(c) expires, if the top-tier corporation shows good cause for granting the request, as
4determined by the department and consistent with section 1502 of the Internal
5Revenue Code.
AB100-SA47,15,106 (e) Except as provided in par. (f), if an election by a top-tier corporation on
7behalf of the members of a commonly controlled group under this subsection is
8terminated, no top-tier corporation may make an election on behalf of the members
9of the same commonly controlled group until 7 taxable years have elapsed from the
10day that the termination of the original election took effect.
AB100-SA47,15,1511 (f) The department may grant a request by a top-tier corporation to make an
12election under this subsection before the period of 7 taxable years under par. (e) have
13elapsed, if the top-tier corporation shows good cause for granting the request, as
14determined by the department and consistent with section 1502 of the Internal
15Revenue Code.
AB100-SA47,16,2 16(4) Accounting period. For purposes of this section, the income under ss. 71.26
17and 71.45, the apportionment factors under ss. 71.25 and 71.45, and the tax credits
18under ss. 71.28 and 71.47 of all corporations that are members of a combined
19reporting group shall be determined by using the same accounting period. If the
20combined reporting group has a common parent corporation, the accounting period
21of the common parent corporation shall be used to determine the income, the
22apportionment factors, and the tax credits of all the corporations that are members
23of the combined reporting group. If the combined reporting group has no common
24parent corporation, the income, the apportionment factors, and the tax credits of the
25combined reporting group shall be determined using the accounting period of the

1member of the combined reporting group that has the most significant operations on
2a recurring basis in this state, as determined by the department.
AB100-SA47,16,11 3(5) Filing returns. (a) Corporations with the same accounting period.
4Corporations that must file a combined report under this section and that have the
5same accounting period may file a group return, as prescribed by the department,
6that reports the aggregate state franchise or state income tax liability of all of the
7members of the combined reporting group. Corporations that are required to file a
8combined report under this section may file separate returns reporting the
9respective apportionment of the corporation's state franchise or state income tax
10liability as determined under sub. (2), if each corporation filing a separate return
11pays its own apportionment of its state franchise or state income tax liability.
AB100-SA47,16,2512 (b) Corporations with different accounting periods. Corporations that are
13required to file a combined report and that have different accounting periods shall
14file separate returns and shall use the actual figures from the corporations' financial
15records to determine the proper income and income-related computations to convert
16to a common accounting period. Corporations that are required to file a combined
17report may use a proportional method to convert income to a common accounting
18period if the results of the proportional method do not materially misrepresent the
19income apportioned to this state. The apportionment factors under ss. 71.25 and
2071.45 and the tax credits under ss. 71.28 and 71.47 shall be computed according to
21the same method used to determine the income under ss. 71.26 and 71.45 for the
22common accounting period. If a corporation performs an interim closing of its
23financial records to determine the income attributable to the common accounting
24period, the actual figures from the interim closing shall be used to convert the
25apportionment factors and tax credits to the common accounting period.
AB100-SA47,17,17
1(c) Designated agent. 1. For corporations that are subject to this section and
2that file a group return under par. (a), the parent corporation of the combined
3reporting group is the sole designated agent for each member of the combined
4reporting group including the parent corporation, if the parent corporation is a
5taxpayer member of the combined reporting group and income of the parent
6corporation is included on the group return. If the parent corporation is not a
7taxpayer member or if the parent corporation's income is not included on the group
8return, the taxpayer members may appoint a taxpayer member to be the designated
9agent. If the parent corporation of the combined reporting group is not eligible to be
10the designated agent and no taxpayer member is appointed to be the designated
11agent, the designated agent is the taxpayer member that has the most significant
12operations in this state on a recurring basis, as determined by the department. The
13designated agent, as determined under this subdivision, remains the designated
14agent until the designated agent is no longer a taxpayer member or until the
15taxpayer members appoint a different designated agent. If the designated agent
16changes, the combined reporting group shall notify the department of such a change,
17in a manner prescribed by the department.
AB100-SA47,18,1518 2. The designated agent shall file the group return under par. (a), shall file for
19any extensions under s. 71.24 (7) or 71.44 (3), shall file amended reports and claims
20for refund or credit, and shall send and receive all correspondence with the
21department regarding a group return. Any notice the department sends to the
22designated agent is considered a notice sent to all members of the combined reporting
23group. Any refund with respect to a group return shall be paid to and in the name
24of the designated agent and shall discharge any liability of the state to any member
25of a combined reporting group regarding the refund. The combined reporting group

1filing a group return under par. (a) shall pay all taxes, including estimated taxes, in
2the designated agent's name. The designated agent shall participate on behalf of the
3members of the combined reporting group in any investigation or hearing requested
4by the department regarding a group return and shall produce all information
5requested by the department regarding a group return. The designated agent may
6execute a power of attorney on behalf of the members of the combined reporting
7group. The designated agent shall execute waivers, closing agreements, and other
8documents regarding a group return filed under par. (a) and any waiver, agreement,
9or document executed by the designated agent shall be considered as executed by all
10members of the combined reporting group. If the department acts in good faith with
11a combined reporting group member that represents itself as the designated agent
12for the combined reporting group but that combined reporting group member is not
13the designated agent, any action taken by the department with that combined
14reporting group member has the same effect as if that combined reporting group
15member were the actual designated agent for the combined reporting group.
AB100-SA47,18,1916 (d) Part-year members. If a corporation becomes a member of a combined
17reporting group or ceases to be a member of a combined reporting group after the
18beginning of a common accounting period, the corporation's income shall be
19apportioned to this state as follows:
AB100-SA47,19,320 1. If the corporation is required to file 2 or more short-period federal returns
21for the common accounting period, the income for the short period in which the
22corporation was a member of a combined reporting group shall be determined as
23provided under sub. (2), the corporation shall join in filing a combined report for that
24short period, and the corporation may join in filing a group return for that short
25period. The income for the remaining short period shall be reported on a separate

1return under s. 71.26 or 71.45. If the corporation becomes a member of another
2combined reporting group in the remaining short period, the corporation's income
3shall be determined for the remaining short period as provided under sub. (2).
AB100-SA47,19,54 2. If the corporation is not required to file federal short-period returns, the
5corporation shall file a separate return. Income shall be determined as follows:
AB100-SA47,19,76 a. As provided under sub. (2) for any period that the corporation was a member
7of a combined reporting group.
AB100-SA47,19,98 b. As a separate entity under s. 71.26 or 71.45 for any period that the
9corporation was not a member of a combined reporting group.
AB100-SA47,19,1310 (e) Amended group return. The election to file a group return under this section
11applies to an amended group return that includes the same corporations that joined
12in the filing of the original group return. Under this section, an amended group
13return shall be filed as follows:
AB100-SA47,19,2214 1. If an election to file a group return that is in effect for a taxable year is
15revoked for the taxable year because the combined reporting group that filed the
16group return is not subject to sub. (2), as determined by the department, the
17designated agent for the combined reporting group may not file an amended group
18return. The designated agent and each corporation that joined in filing the group
19return shall file a separate amended return. To compute the tax due on a separate
20amended return, a corporation that files a separate amended return shall consider
21all of the payments, credits, or other amounts, including refunds, that the designated
22agent allocated to the corporation.
AB100-SA47,20,223 2. If a change in tax liability under this section is the result of the removal of
24a corporation from a combined reporting group because the corporation was not
25eligible to be a member of the combined reporting group for the taxable year, as

1determined by the department, the designated agent shall file an amended group
2return and the ineligible corporation shall file a separate amended return.
AB100-SA47,20,83 3. If a corporation erroneously fails to join in the filing of a group return, the
4designated agent shall file an amended group return that includes the corporation.
5If a corporation that erroneously fails to join in the filing of a group return has filed
6a separate return, the corporation shall file an amended separate return that shows
7no net income, overpayment, or underpayment, and shows that the corporation has
8joined in the filing of a group return.
AB100-SA47,20,10 9(6) Income computation under combined reporting. For the purposes of sub.
10(2), income attributable to this state shall be determined as follows:
AB100-SA47,20,2511 (a) Determine the net income of each member of a combined reporting group
12under s. 71.26 or 71.45, as appropriate, before deducting net business losses. A
13member of a combined reporting group may determine its net loss or net income
14under a method of accounting or an election authorized under s. 71.26 (3) (y), 71.30
15(1), 71.45 (2) (a) 13., or 71.49 (2), as appropriate, regardless of the accounting method
16used to determine the net loss or net income of other members of the combined
17reporting group. After a member establishes an accounting method, or makes any
18election under this section, the member's net loss or net income shall be consistently
19determined in the combined report of all members of the combined reporting group
20and in the group return filed by the taxpayer members or in the separate return filed
21by the members. If a corporation is engaged in 2 or more trades or businesses that
22are required to use different apportionment formulas under s. 71.25 or 71.45, the net
23income for each trade or business shall be computed separately. A unitary business
24with operations in a foreign country shall compute its net loss or net income as
25provided by rule by the department.
AB100-SA47,21,2
1(b) Adjust each member's income, as determined under par. (a), as provided
2under s. 71.30.
AB100-SA47,21,83 (c) From the amount determined under par. (b), subtract intercompany
4transactions, as provided by rule by the department, such that intercompany
5accounts of assets, liabilities, equities, income, costs, or expenses are excluded from
6the income determination to accurately reflect the income, the apportionment
7factors, and the tax credits in a combined report that is filed under this section. An
8intercompany transaction includes the following:
AB100-SA47,21,119 1. Income or gain from sales, exchanges, contributions, or other transfers of
10tangible or intangible property from a member of the combined reporting group to
11another member of the combined reporting group.
AB100-SA47,21,1312 2. Annual rent paid by a member of the combined reporting group to another
13member of the combined reporting group.
AB100-SA47,21,1514 3. Annual license fees or royalties paid by a member of the combined reporting
15group to another member of the combined reporting group.
AB100-SA47,21,1816 4. Loans, advances, receivables, and similar items that one member of the
17combined reporting group owes to another member of the combined reporting group,
18including interest income and interest expense related to these items.
AB100-SA47,21,2019 5. Stock or other equity of a member of the combined reporting group that is
20owned or controlled by another member of the combined reporting group.
AB100-SA47,21,2321 6. Except as provided by rule by the department, dividends paid out of earnings
22or profits and paid by a member of the combined reporting group to another member
23of the combined reporting group.
AB100-SA47,21,2524 7. Management or service fees paid by a member of the combined reporting
25group to another member of the combined reporting group.
AB100-SA47,22,2
18. Income or expenses allocated or charged by a member of the combined
2reporting group to another member of the combined reporting group.
AB100-SA47,22,63 (d) From the amount determined under par. (c) for each member of a combined
4reporting group, subtract nonapportionable income, net of related expenses, and add
5nonapportionable losses, net of related expenses, to determine each member's
6apportionable net income or apportionable net loss.
AB100-SA47,22,97 (e) Calculate the apportionment factors under sub. (7) and multiply each
8member's apportionable net income or apportionable net loss, as determined under
9par. (d), by the member's apportionment factor as determined under sub. (7).
AB100-SA47,22,1110 (f) For each corporation, combine the amounts determined under par. (e) for
11each trade or business.
AB100-SA47,22,1412 (g) To the amounts determined under par. (f), add each member's
13nonapportionable income attributable to this state and subtract each member's
14nonapportionable losses attributable to this state.
AB100-SA47,22,1615 (h) If the combined reporting group is not filing a group return, combine the
16amounts determined under par. (g) for all members of the combined reporting group.
AB100-SA47,22,1917 (i) If the combined reporting group is filing a group return, combine the
18amounts determined under par. (g) for all members of the combined reporting group
19that join in filing the group return.
AB100-SA47,22,2120 (j) From the amount determined under par. (h) or (i), as appropriate, subtract
21the combined reporting group's net operating loss as determined under sub. (8).
AB100-SA47,22,23 22(7) Apportionment factor computation under combined reporting. For the
23purposes of sub. (2), this state's apportionment factors are determined as follows:
AB100-SA47,23,3
1(a) 1. Determine the numerator and the denominator of the apportionment
2factors as determined under s. 71.25 or 71.45, as appropriate, for each member of the
3combined reporting group, except as provided in subd. 2.
AB100-SA47,23,134 2. If a member of a combined reporting group is not subject to the tax imposed
5under s. 71.23 or 71.43 because it does not have sufficient connection to this state as
6a separate entity for income or franchise tax purposes, as determined by the
7department, the numerator of the member's sales factor under s. 71.25 (9) or
8apportionment factor under s. 71.45 (3) is zero. If a member of a combined reporting
9group is a corporation engaged in business wholly within this state, as provided
10under s. 71.25 (4), the numerator and denominator of the member's apportionment
11factors are the same. If a member of a combined reporting group is not subject to an
12income or franchise tax as a separate entity in the state to which a sale is attributed,
13the sale is attributed to this state.
AB100-SA47,23,1514 (b) Subtract intercompany transactions under sub. (6) (c) from both the
15numerators and the denominators as determined under par. (a).
AB100-SA47,23,1816 (c) Add the denominators of the apportionment factors for each member of the
17combined reporting group, as determined under par. (b), to arrive at the combined
18denominator.
AB100-SA47,23,2119 (d) Compute each corporation's apportionment factors by dividing the
20corporation's numerator as determined under par. (b) by the combined denominator
21as determined under par. (c).
AB100-SA47,24,5 22(8) Net business loss carry-over. (a) For taxable years beginning after
23December 31, 2005, any net business loss of a corporation that is a member of a
24combined reporting group as determined under sub. (6) for the taxable year that is
25not offset against the net income of the other members of the combined reporting

1group in the same taxable year may be carried forward as provided under s. 71.26
2(4), except that any net business loss carried forward to a subsequent taxable year
3may be offset against either the net income of the corporation that incurred the net
4business loss or the net income of the combined reporting group of which the
5corporation is a member, in the manner prescribed by rule by the department.
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