Amendment SA2-SSA1-SB55

SB55-SSA1-SA2,293,24 (c) A member of a commonly controlled group shall retain all information provided under par. (a) during any period for which the member's tax liability to this state is subject to adjustment, including any period in which the state may assess additional income or franchise taxes, an appeal of the member's tax assessment is pending, or a suit related to the member's tax liability is pending.".

SB55-SSA1-SA2,294,1 929. Page 768, line 17: delete lines 17 to 19.

SB55-SSA1-SA2,294,2 930. Page 768, line 24: delete "and (5)" and substitute "(5), and (9t)".

SB55-SSA1-SA2,294,3 931. Page 769, line 1: delete "(1ds) and, and (3g)" and substitute "(1ds), and".

SB55-SSA1-SA2,294,4 932. Page 793, line 5: after that line insert:

SB55-SSA1-SA2,294,5 " Section 2175dn. 71.26 (3) (L) of the statutes is amended to read:

SB55-SSA1-SA2,294,22 71.26 (3) (L) Section 265 is excluded and replaced by the rule that any amount otherwise deductible under this chapter that is directly or indirectly related to income wholly exempt from taxes imposed by this chapter or to losses from the sale or other disposition of assets the gain from which would be exempt under this paragraph if the assets were sold or otherwise disposed of at a gain is not deductible. In this paragraph, "wholly exempt income", for corporations subject to franchise or income taxes, includes amounts received from affiliated or subsidiary corporations for interest, dividends or capital gains that, because of the degree of common ownership, control or management between the payor and payee, are not subject to taxes under this chapter. In this paragraph, "wholly exempt income", for corporations subject to income taxation under this chapter, also includes interest on obligations of the United States. In this paragraph, "wholly exempt income" does not include income excludable, not recognized, exempt or deductible under specific provisions of this chapter. If any expense or amount otherwise deductible is indirectly related both to wholly exempt income or loss and to other income or loss, a reasonable proportion of the expense or amount shall be allocated to each type of income or loss, in light of all the facts and circumstances.".

SB55-SSA1-SA2,294,23 933. Page 793, line 5: after that line insert:

SB55-SSA1-SA2,294,24 " Section 2175f. 71.26 (3) (e) 1. of the statutes is amended to read:

SB55-SSA1-SA2,295,8 71.26 (3) (e) 1. So that payments for wages, salaries, commissions, and bonuses of employees and officers may be deducted only if the name, address , and amount paid to each resident of this state to whom compensation of $600 or more has been paid during the taxable year is reported or if the department of revenue is satisfied that failure to report has resulted in no revenue loss to this state. A deduction for wages, salaries, commissions, and bonuses paid to an employee or officer shall not exceed an amount equal to the wages, salaries, commissions, and bonuses paid to the corporation's lowest paid full-time employee multiplied by 25.".

SB55-SSA1-SA2,295,9 934. Page 793, line 22: after that line insert:

SB55-SSA1-SA2,295,10 " Section 2176dm. 71.26 (3) (x) of the statutes is amended to read:

SB55-SSA1-SA2,295,14 71.26 (3) (x) Sections 1501 to 1505, 1551, 1552, 1563 and 1564 (relating to consolidated returns) are excluded, except to the extent that they pertain to intercompany transactions and the carry forward of net business loss under s. 71.255.

SB55-SSA1-SA2, s. 2176dp Section 2176dp. 71.26 (4) of the statutes is amended to read:

SB55-SSA1-SA2,296,8 71.26 (4) Net business loss carry-forward. A corporation, except a tax-option corporation or an insurer to which s. 71.45 (4) applies, may offset against its Wisconsin net business income any Wisconsin net business loss sustained in any of the next 15 preceding taxable years, if the corporation was subject to taxation under this chapter in the taxable year in which the loss was sustained, to the extent not offset by other items of Wisconsin income in the loss year and by Wisconsin net business income of any year between the loss year and the taxable year for which an offset is claimed. For purposes of this subsection Wisconsin net business income or loss shall consist of all the income attributable to the operation of a trade or business in this state, less the business expenses allowed as deductions in computing net income. The Wisconsin net business income or loss of corporations engaged in business within and without the state shall be determined under s. 71.255 or 71.25 (6) and (10) to (12). Nonapportionable losses having a Wisconsin situs under s. 71.25 (5) (b) shall be included in Wisconsin net business loss; and nonapportionable income having a Wisconsin situs under s. 71.25 (5) (b), whether taxable or exempt, shall be included in other items of Wisconsin income and Wisconsin net business income for purposes of this subsection.".

SB55-SSA1-SA2,296,9 935. Page 793, line 22: after that line insert:

SB55-SSA1-SA2,296,10 " Section 2176m. 71.28 (1di) (b) 1. of the statutes is amended to read:

SB55-SSA1-SA2,296,18 71.28 (1di) (b) 1. Except as provided in subd. 2., the credit, including any credits carried over, may be offset only against the amount of the tax otherwise due under this chapter attributable to income from the business operations of the claimant in the development zone; except that a claimant in a development zone under s. 560.795 (1) (e) may offset the credit, including any credits carried over, against the amount of the tax otherwise due under this chapter attributable to all of the claimant's income; and against the tax attributable to income from directly related business operations of the claimant.

SB55-SSA1-SA2, s. 2176p Section 2176p. 71.28 (1di) (b) 3. of the statutes is amended to read:

SB55-SSA1-SA2,297,12 71.28 (1di) (b) 3. Partnerships, limited liability companies and tax-option corporations may not claim the credit under this subsection, but the eligibility for, and amount of, that credit shall be determined on the basis of their economic activity, not that of their shareholders, partners or members. The corporation, partnership or limited liability company shall compute the amount of the credit that may be claimed by each of its shareholders, partners or members and shall provide that information to each of its shareholders, partners or members. Partners, members of limited liability companies and shareholders of tax-option corporations may claim the credit based on the partnership's, company's or corporation's activities in proportion to their ownership interest and may offset it against the tax attributable to their income from the partnership's, company's or corporation's business operations in the development zone; except that partners, members, and shareholders in a development zone under s. 560.795 (1) (e) may offset the credit against the amount of the tax attributable to their income from all of the partnership's, company's, or corporation's business operations; and against the tax attributable to their income from the partnership's, company's or corporation's directly related business operations.".

SB55-SSA1-SA2,297,13 936. Page 794, line 5: after "(e)" insert "and (f)".

SB55-SSA1-SA2,297,14 937. Page 796, line 5: after that line insert:

SB55-SSA1-SA2,297,22 "(hm) Credits claimed under this subsection, including any credits carried over, may be offset only against the amount of the tax otherwise due under this subchapter attributable to income from the business operations of the claimant in the development zone; except that a claimant in a development zone under s. 560.795 (1) (e) may offset credits, including any credits carried over, against the amount of the tax otherwise due under this subchapter attributable to all of the claimant's income; and against the tax attributable to income from directly related business operations of the claimant.".

SB55-SSA1-SA2,298,2 938. Page 796, line 17: after "zone" insert "; except that partners, members, and shareholders in a development zone under s. 560.795 (1) (e) may offset the credit against the amount of the tax attributable to their income from all of the partnership's, company's, or corporation's business operations;".

SB55-SSA1-SA2,298,3 939. Page 797, line 24: after that line insert:

SB55-SSA1-SA2,298,4 " Section 2178k. 71.28 (1dx) (b) (intro.) of the statutes is amended to read:

SB55-SSA1-SA2,298,10 71.28 (1dx) (b) Credit. (intro.) Except as provided in pars. (be) and (bg) and in s. 73.03 (35), and subject to s. 560.785, for any taxable year for which the person is entitled under s. 560.795 (3) to claim tax benefits or certified under s. 560.765 (3) or 560.797 (4), any person may claim as a credit against taxes imposed on the person's income from the person's business activities in a development zone under this subchapter the following amounts:

SB55-SSA1-SA2, s. 2178m Section 2178m. 71.28 (1dx) (be) of the statutes is created to read:

SB55-SSA1-SA2,298,16 71.28 (1dx) (be) Offset. A claimant in a development zone under s. 560.795 (1) (e) may offset any credits claimed under this subsection, including any credits carried over, against the amount of the tax otherwise due under this subchapter attributable to all of the claimant's income and against the tax attributable to income from directly related business operations of the claimant.

SB55-SSA1-SA2, s. 2178p Section 2178p. 71.28 (1dx) (bg) of the statutes is created to read:

SB55-SSA1-SA2,299,7 71.28 (1dx) (bg) Other entities. For claimants in a development zone under s. 560.795 (1) (e), partnerships, limited liability companies, and tax-option corporations may not claim the credit under this subsection, but the eligibility for, and amount of, that credit shall be determined on the basis of their economic activity, not that of their shareholders, partners, or members. The corporation, partnership, or company shall compute the amount of the credit that may be claimed by each of its shareholders, partners, or members and shall provide that information to each of its shareholders, partners, or members. Partners, members of limited liability companies, and shareholders of tax-option corporations may claim the credit based on the partnership's, company's, or corporation's activities in proportion to their ownership interest and may offset it against the tax attributable to their income from all of the partnership's, company's, or corporation's business operations and against the tax attributable to their income from the partnership's, company's, or corporation's directly related business operations.".

SB55-SSA1-SA2,299,9 940. Page 797, line 25: delete the material beginning with that line and ending on page 798, line 22.

SB55-SSA1-SA2,299,10 941. Page 798, line 22: after that line insert:

SB55-SSA1-SA2,299,11 " Section 2179m. 71.29 (2) of the statutes is amended to read:

SB55-SSA1-SA2,299,14 71.29 (2) Who shall pay. Every Except as provided in s. 71.255 (11), every corporation subject to tax under s. 71.23 (1) or (2) and every virtually exempt entity subject to tax under s. 71.125 or 71.23 (1) or (2) shall pay an estimated tax.".

SB55-SSA1-SA2,299,15 942. Page 798, line 22: after that line insert:

SB55-SSA1-SA2,299,16 " Section 2179d. 71.28 (9t) of the statutes is created to read:

SB55-SSA1-SA2,299,18 71.28 (9t) Artistic endowment credit. (a) Definition. In this subsection, "claimant" means a person who files a claim under this subsection.

SB55-SSA1-SA2,299,23 (b) Filing claims. For taxable years beginning after December 31, 2002, subject to the limitations provided in this subsection, a claimant may claim as a credit against the tax imposed under s. 71.23, up to the amount of those taxes, an amount equal to 25% of the amount contributed to the artistic endowment fund under s. 25.78, up to a maximum $500 contribution in a taxable year.

SB55-SSA1-SA2,300,4 (c) Limitations and conditions. 1. No new claim may be filed under this subsection for a taxable year that begins after December 31 of the year in which the department determines that the total amount of revenues received by the endowment fund equals $50,150,000.

SB55-SSA1-SA2,300,6 2. No credit may be allowed under this subsection unless it is claimed within the time period under s. 71.75 (2).

SB55-SSA1-SA2,300,8 (d) Administration. Subsection (4) (e) and (g), as it applies to the credit under sub. (4), applies to the credit under this subsection.

SB55-SSA1-SA2, s. 2179h Section 2179h. 71.30 (3) (bm) of the statutes is created to read:

SB55-SSA1-SA2,300,10 71.30 (3) (bm) Artistic endowment credit under s. 71.28 (9t).".

SB55-SSA1-SA2,300,11 943. Page 799, line 1: delete lines 1 and 2.

SB55-SSA1-SA2,300,12 944. Page 799, line 5: delete "(1dx) and, (3)," and substitute "(1dx), and (3)".

SB55-SSA1-SA2,300,13 945. Page 799, line 6: delete "and (3g)".

SB55-SSA1-SA2,300,14 946. Page 821, line 17: after that line insert:

SB55-SSA1-SA2,300,15 " Section 2184d. 71.44 (1) (e) of the statutes is created to read:

SB55-SSA1-SA2,300,18 71.44 (1) (e) A corporation that is a member of a commonly controlled group, as defined in s. 71.255 (1) (d), and engaged in a unitary business, as defined in s. 71.255 (1) (m), shall file a tax return under s. 71.255.".

SB55-SSA1-SA2,300,20 947. Page 822, line 7: delete the material beginning with that line and ending with page 826, line 6.

SB55-SSA1-SA2,300,21 948. Page 826, line 16: after that line insert:

SB55-SSA1-SA2,300,22 " Section 2190m. 71.46 (3) of the statutes is repealed.".

SB55-SSA1-SA2,300,23 949. Page 826, line 16: after that line insert:

SB55-SSA1-SA2,300,24 " Section 2190m. 71.47 (1di) (b) 1. of the statutes is amended to read:

SB55-SSA1-SA2,301,8 71.47 (1di) (b) 1. Except as provided in subd. 2., the credit, including any credits carried over, may be offset only against the amount of the tax otherwise due under this chapter attributable to income from the business operations of the claimant in the development zone; except that a claimant in a development zone under s. 560.795 (1) (e) may offset the credit, including any credits carried over, against the amount of the tax otherwise due under this chapter attributable to all of the claimant's income; and against the tax attributable to income from directly related business operations of the claimant.

SB55-SSA1-SA2, s. 2190p Section 2190p. 71.47 (1di) (b) 3. of the statutes is amended to read:

SB55-SSA1-SA2,301,25 71.47 (1di) (b) 3. Partnerships, limited liability companies and tax-option corporations may not claim the credit under this subsection, but the eligibility for, and amount of, that credit shall be determined on the basis of their economic activity, not that of their shareholders, partners or members. The corporation, partnership or limited liability company shall compute the amount of the credit that may be claimed by each of its shareholders, partners or members and shall provide that information to each of its shareholders, partners or members. Partners, members of limited liability companies and shareholders of tax-option corporations may claim the credit based on the partnership's, company's or corporation's activities in proportion to their ownership interest and may offset it against the tax attributable to their income from the partnership's, company's or corporation's business operations in the development zone; except that a claimant in a development zone under s. 560.795 (1) (e) may offset the credit, including any credits carried over, against the amount of the tax otherwise due under this chapter attributable to all of the claimant's income; and against the tax attributable to their income from the partnership's, company's or corporation's directly related business operations.".

SB55-SSA1-SA2,302,1 950. Page 826, line 24: after "(e)" insert "and (f)".

SB55-SSA1-SA2,302,2 951. Page 828, line 24: after that line insert:

SB55-SSA1-SA2,302,10 "(hm) Credits claimed under this subsection, including any credits carried over, may be offset only against the amount of the tax otherwise due under this subchapter attributable to income from the business operations of the claimant in the development zone; except that a claimant in a development zone under s. 560.795 (1) (e) may offset credits, including any credits carried over, against the amount of the tax otherwise due under this subchapter attributable to all of the claimant's income; and against the tax attributable to income from directly related business operations of the claimant.".

SB55-SSA1-SA2,302,14 952. Page 829, line 12: after "zone" insert "; except that partners, members, and shareholders in a development zone under s. 560.795 (1) (e) may offset the credit against the amount of the tax attributable to their income from all of the partnership's, company's, or corporation's business operations;".

SB55-SSA1-SA2,302,15 953. Page 830, line 19: after that line insert:

SB55-SSA1-SA2,302,16 " Section 2192k. 71.47 (1dx) (b) (intro.) of the statutes is amended to read:

SB55-SSA1-SA2,302,22 71.47 (1dx) (b) Credit. (intro.) Except or provided in pars. (be) and (bg) and in s. 73.03 (35), and subject to s. 560.785, for any taxable year for which the person is entitled under s. 560.795 (3) to claim tax benefits or certified under s. 560.765 (3) or 560.797 (4), any person may claim as a credit against taxes imposed on the person's income from the person's business activities in a development zone under this subchapter the following amounts:

SB55-SSA1-SA2, s. 2192m Section 2192m. 71.47 (1dx) (be) of the statutes is created to read:

SB55-SSA1-SA2,303,5 71.47 (1dx) (be) Offset. A claimant in a development zone under s. 560.795 (1) (e) may offset any credits claimed under this subsection, including any credits carried over, against the amount of the tax otherwise due under this subchapter attributable to all of the claimant's income and against the tax attributable to income from directly related business operations of the claimant.

SB55-SSA1-SA2, s. 2192p Section 2192p. 71.47 (1dx) (bg) of the statutes is created to read:

SB55-SSA1-SA2,303,20 71.47 (1dx) (bg) Other entities. For claimants in a development zone under s. 560.795 (1) (e), partnerships, limited liability companies, and tax-option corporations may not claim the credit under this subsection, but the eligibility for, and amount of, that credit shall be determined on the basis of their economic activity, not that of their shareholders, partners, or members. The corporation, partnership, or company shall compute the amount of the credit that may be claimed by each of its shareholders, partners, or members and shall provide that information to each of its shareholders, partners, or members. Partners, members of limited liability companies, and shareholders of tax-option corporations may claim the credit based on the partnership's, company's, or corporation's activities in proportion to their ownership interest and may offset it against the tax attributable to their income from all of the partnership's, company's, or corporation's business operations and against the tax attributable to their income from the partnership's, company's, or corporation's directly related business operations.".

SB55-SSA1-SA2,303,22 954. Page 830, line 20: delete the material beginning with that line and ending with page 831, line 18.

SB55-SSA1-SA2,303,23 955. Page 831, line 18: after that line insert:

SB55-SSA1-SA2,303,24 " Section 2193m. 71.48 of the statutes is amended to read:

SB55-SSA1-SA2,304,3 71.48 Payments of estimated taxes. Sections Except as provided in s. 71.255 (11), ss. 71.29 and 71.84 (2) shall apply to insurers subject to taxation under this chapter.".

SB55-SSA1-SA2,304,4 956. Page 831, line 18: after that line insert:

SB55-SSA1-SA2,304,5 " Section 2193d. 71.47 (9t) of the statutes is created to read:

SB55-SSA1-SA2,304,7 71.47 (9t) Artistic endowment credit. (a) Definition. In this subsection, "claimant" means a person who files a claim under this subsection.

SB55-SSA1-SA2,304,12 (b) Filing claims. For taxable years beginning after December 31, 2002, subject to the limitations provided in this subsection, a claimant may claim as a credit against the tax imposed under s. 71.43, up to the amount of those taxes, an amount equal to 25% of the amount contributed to the artistic endowment fund under s. 25.78, up to a maximum $500 contribution in a taxable year.

SB55-SSA1-SA2,304,16 (c) Limitations and conditions. 1. No new claim may be filed under this subsection for a taxable year that begins after December 31 of the year in which the department determines that the total amount of revenues received by the endowment fund equals $50,150,000.

SB55-SSA1-SA2,304,18 2. No credit may be allowed under this subsection unless it is claimed within the time period under s. 71.75 (2).

SB55-SSA1-SA2,304,20 (d) Administration. Section 71.28 (4) (e) and (g), as it applies to the credit under s. 71.28 (4), applies to the credit under this subsection.

SB55-SSA1-SA2, s. 2193h Section 2193h. 71.49 (1) (bm) of the statutes is created to read:

SB55-SSA1-SA2,304,22 71.49 (1) (bm) Artistic endowment credit under s. 71.47 (9t).".

SB55-SSA1-SA2,304,23 957. Page 831, line 22: delete lines 22 and 23.

SB55-SSA1-SA2,304,24 958. Page 831, line 23: after that line insert:

SB55-SSA1-SA2,305,1 " Section 2199m. 71.84 (2) (a) of the statutes is amended to read:

SB55-SSA1-SA2,305,12 71.84 (2) (a) Except as provided in s. 71.29 (7), in the case of any underpayment of estimated tax under s. 71.255, 71.29 or 71.48 there shall be added to the aggregate tax for the taxable year interest at the rate of 12% per year on the amount of the underpayment for the period of the underpayment. For corporations, except as provided in par. (b), "period of the underpayment" means the time period from the due date of the instalment until either the 15th day of the 3rd month beginning after the end of the taxable year or the date of payment, whichever is earlier. If 90% of the tax shown on the return is not paid by the 15th day of the 3rd month following the close of the taxable year, the difference between that amount and the estimated taxes paid, along with any interest due, shall accrue delinquent interest under s. 71.91 (1) (a).".

SB55-SSA1-SA2,305,13 959. Page 832, line 6: delete "(b)".

SB55-SSA1-SA2,305,14 960. Page 832, line 8: delete lines 8 to 11 and substitute:

SB55-SSA1-SA2,305,16 "72.01 (11m) "Federal credit" means the federal estate tax credit in effect on December 31, 2000.".