SB197-SSA3,6,523 71.04 (7) (d) Sales, other than sales of tangible personal property, are in this
24state if the income-producing activity is performed in this state. If the
25income-producing activity is performed both in and outside this state the sales shall

1be divided between those states having jurisdiction to tax such business in
2proportion to the direct costs of performance incurred in each such state in rendering
3this service. Services performed in states which do not have jurisdiction to tax the
4business shall be deemed to have been performed in the state to which compensation
5is allocated by sub. s. 71.04 (6) , 2001 stats.
SB197-SSA3, s. 12 6Section 12. 71.04 (8) (b) of the statutes is renumbered 71.04 (8) (b) 1. and
7amended to read:
SB197-SSA3,6,148 71.04 (8) (b) 1. "Public For taxable years beginning before January 1, 2006,
9"public
utility", as used in this section, means any business entity described under
10subd. 2. and
any business entity which owns or operates any plant, equipment,
11property, franchise, or license for the transmission of communications or the
12production, transmission, sale, delivery, or furnishing of electricity, water or steam,
13the rates of charges for goods or services of which have been established or approved
14by a federal, state or local government or governmental agency. " Public
SB197-SSA3,6,20 152. In this section, for taxable years beginning after December 31, 2005, "public
16utility" also means any business entity providing service to the public and engaged
17in the transportation of goods and persons for hire, as defined in s. 194.01 (4),
18regardless of whether or not the entity's rates or charges for services have been
19established or approved by a federal, state or local government or governmental
20agency.
SB197-SSA3, s. 13 21Section 13. 71.04 (8) (c) of the statutes is amended to read:
SB197-SSA3,7,222 71.04 (8) (c) The net business income of railroads, sleeping car companies, car
23line companies, pipeline companies, financial organizations, air carriers, and public
24utilities requiring apportionment shall be apportioned pursuant to rules of the

1department of revenue, but the income taxed is limited to the income derived from
2business transacted and property located within the state.
SB197-SSA3, s. 14 3Section 14. 71.04 (10) of the statutes is amended to read:
SB197-SSA3,7,144 71.04 (10) Department may waive factor. Where, in the case of any nonresident
5individual or nonresident estate or trust engaged in business within in and without
6the
outside this state of Wisconsin and required to apportion its income as provided
7in this section, it shall be shown to the satisfaction of the department of revenue that
8the use of any one of the 3 factors provided under sub. (4) gives an unreasonable or
9inequitable final average ratio because of the fact that such nonresident individual
10or nonresident estate or trust does not employ, to any appreciable extent in its trade
11or business in producing the income taxed, the factors made use of in obtaining such
12ratio, this factor may, with the approval of the department of revenue, be omitted in
13obtaining the final average ratio which is to be applied to the remaining net income.
14This subsection does not apply to taxable years beginning after December 31, 2007.
SB197-SSA3, s. 15 15Section 15. 71.25 (6) of the statutes is renumbered 71.25 (6) (intro.) and
16amended to read:
SB197-SSA3,8,1117 71.25 (6) Allocation and separate accounting and apportionment formula.
18(intro.) Corporations engaged in business within and without the state shall be taxed
19only on such income as is derived from business transacted and property located
20within the state. The amount of such income attributable to Wisconsin may be
21determined by an allocation and separate accounting thereof, when the business of
22such corporation within the state is not an integral part of a unitary business, but
23the department of revenue may permit an allocation and separate accounting in any
24case in which it is satisfied that the use of such method will properly reflect the
25income taxable by this state. In all cases in which allocation and separate accounting

1is not permissible, the determination shall be made in the following manner: for all
2businesses except air carriers, financial organizations, pipeline companies, public
3utilities, railroads, sleeping car companies, car line companies and corporations or
4associations that are subject to a tax on unrelated business income under s. 71.26 (1)
5(a) there shall first be deducted from the total net income of the taxpayer the part
6thereof (less related expenses, if any) that follows the situs of the property or the
7residence of the recipient. The remaining net income shall be apportioned to
8Wisconsin this state by use of an apportionment fraction composed of a sales factor
9under sub. (9) representing 50% of the fraction, a property factor under sub. (7)
10representing 25% of the fraction and a payroll factor under sub. (8) representing 25%
11of the fraction.
the following:
SB197-SSA3, s. 16 12Section 16. 71.25 (6) (a) of the statutes is created to read:
SB197-SSA3,8,1613 71.25 (6) (a) Except as provided in par. (f), for taxable years beginning before
14January 1, 2006, an apportionment fraction composed of a sales factor under sub. (9)
15representing 50% of the fraction, a property factor under sub. (7) representing 25%
16of the fraction, and a payroll factor under sub. (8) representing 25% of the fraction.
SB197-SSA3, s. 17 17Section 17. 71.25 (6) (b) of the statutes is created to read:
SB197-SSA3,8,2218 71.25 (6) (b) Except as provided in par. (f), for taxable years beginning after
19December 31, 2005, and before January 1, 2007, an apportionment fraction
20composed of a sales factor under sub. (9) representing 60% of the fraction, a property
21factor under sub. (7) representing 20% of the fraction, and a payroll factor under sub.
22(8) representing 20% of the fraction.
SB197-SSA3, s. 18 23Section 18. 71.25 (6) (c) of the statutes is created to read:
SB197-SSA3,9,324 71.25 (6) (c) Except as provided in par. (f), for taxable years beginning after
25December 31, 2006, and before January 1, 2008, an apportionment fraction

1composed of a sales factor under sub. (9) representing 80% of the fraction, a property
2factor under sub. (7) representing 10% of the fraction, and a payroll factor under sub.
3(8) representing 10% of the fraction.
SB197-SSA3, s. 19 4Section 19. 71.25 (6) (d) of the statutes is created to read:
SB197-SSA3,9,75 71.25 (6) (d) Except as provided in par. (f), for taxable years beginning after
6December 31, 2007, an apportionment fraction composed of the sales factor under
7sub. (9).
SB197-SSA3, s. 20 8Section 20. 71.25 (6) (e) of the statutes is created to read:
SB197-SSA3,9,159 71.25 (6) (e) Except as provided in par. (f), for taxable years beginning after
10December 31, 2005, and before January 1, 2008, the apportionment fraction for the
11remaining net income of a financial organization shall include a sales factor that
12represents more than 50% of the apportionment fraction, as determined by rule by
13the department. For taxable years beginning after December 31, 2007, the
14apportionment fraction for the remaining net income of a financial organization is
15composed of a sales factor, as determined by rule by the department.
SB197-SSA3, s. 21 16Section 21. 71.25 (6) (f) of the statutes is created to read:
SB197-SSA3,9,2417 71.25 (6) (f) If a taxpayer who is subject to apportionment under this subsection
18has a net gain of 100 employees in this state in any taxable year beginning after the
19effective date of this paragraph .... [revisor inserts date], and before January 1, 2008,
20the taxpayer's remaining net income may, at the taxpayer's option, be apportioned
21to this state by an apportionment fraction composed of the sales factor under sub. (9)
22or, for a financial organization, under par. (e) beginning with the taxable year in
23which the employees are hired, except that if the taxpayer does not retain such
24employees in this state for at least 3 consecutive taxable years, the taxpayer shall

1apportion the taxpayer's remaining net income as provided under pars. (a) to (e), as
2appropriate.
SB197-SSA3, s. 22 3Section 22. 71.25 (6m) of the statutes is created to read:
SB197-SSA3,10,84 71.25 (6m) Apportionment formula computation. (a) 1. For taxable years
5beginning before January 1, 2008, if both the numerator and the denominator of the
6sales factor under sub. (9) related to a taxpayer's remaining net income are zero, the
7sales factor under sub. (9) is eliminated from the apportionment formula to
8determine the taxpayer's remaining net income under sub. (6).
SB197-SSA3,10,129 2. For taxable years beginning after December 31, 2007, if both the numerator
10and the denominator of the sales factor under sub. (9) related to a taxpayer's
11remaining net income are zero, none of the taxpayer's remaining net income is
12apportioned to this state.
SB197-SSA3,10,1713 (b) 1. For taxable years beginning before January 1, 2008, if the numerator of
14the sales factor under sub. (9) related to a taxpayer's remaining net income is a
15negative number and the denominator of the sales factor under sub. (9) related to a
16taxpayer's remaining net income is a positive number, a negative number, or zero,
17the sales factor under sub. (9) is zero.
SB197-SSA3,10,2218 2. For taxable years beginning after December 31, 2007, if the numerator of the
19sales factor under sub. (9) related to a taxpayer's remaining net income is a negative
20number and the denominator of the sales factor under sub. (9) related to a taxpayer's
21remaining net income is a positive number, a negative number, or zero, none of the
22taxpayer's remaining net income is apportioned to this state.
SB197-SSA3,11,223 (c) 1. For taxable years beginning before January 1, 2008, if the numerator of
24the sales factor under sub. (9) related to a taxpayer's remaining net income is a
25positive number and the denominator of the sales factor under sub. (9) related to a

1taxpayer's remaining net income is zero or a negative number, the sales factor under
2sub. (9) is one.
SB197-SSA3,11,73 2. For taxable years beginning after December 31, 2007, if the numerator of the
4sales factor under sub. (9) related to a taxpayer's remaining net income is a positive
5number and the denominator of the sales factor under sub. (9) related to a taxpayer's
6remaining net income is zero or a negative number, all of the taxpayer's remaining
7net income is apportioned to this state.
SB197-SSA3, s. 23 8Section 23. 71.25 (7) (intro.) of the statutes is amended to read:
SB197-SSA3,11,109 71.25 (7) Property factor. (intro.) For purposes of sub. (5) (6) and for taxable
10years beginning before January 1, 2008
:
SB197-SSA3, s. 24 11Section 24. 71.25 (8) (intro.) of the statutes is amended to read:
SB197-SSA3,11,1312 71.25 (8) Payroll factor. (intro.) For purposes of sub. (5) (6) and for taxable
13years beginning before January 1, 2008
:
SB197-SSA3, s. 25 14Section 25. 71.25 (9) (a) of the statutes is amended to read:
SB197-SSA3,11,2515 71.25 (9) (a) The sales factor is a fraction, the numerator of which is the total
16sales of the taxpayer in this state during the tax period, and the denominator of
17which is the total sales of the taxpayer everywhere during the tax period. For sales
18of tangible personal property, the numerator of the sales factor is the sales of the
19taxpayer during the tax period under par. (b) 1. and 2. plus 50% of the sales of the
20taxpayer during the tax period under pars. (b) 2m. and 3. and (c). For purposes of
21determining the numerator of the sales factor for a member of a combined reporting
22group under s. 71.255 (7), "taxpayer" means the member of a combined reporting
23group, as defined in s. 71.255 (1) (c), that transferred title to tangible personal
24property or, for sales other than sales of tangible personal property, that made the
25sale.
SB197-SSA3, s. 26
1Section 26. 71.25 (9) (d) of the statutes is amended to read:
SB197-SSA3,12,92 71.25 (9) (d) Sales, other than sales of tangible personal property, are in this
3state if the income-producing activity is performed in this state. If the
4income-producing activity is performed both in and outside this state the sales shall
5be divided between those states having jurisdiction to tax such business in
6proportion to the direct costs of performance incurred in each such state in rendering
7this service. Services performed in states which do not have jurisdiction to tax the
8business shall be deemed to have been performed in the state to which compensation
9is allocated by sub. s. 71.25 (8) , 2001 stats.
SB197-SSA3, s. 27 10Section 27. 71.25 (10) (b) of the statutes is renumbered 71.25 (10) (b) 1. and
11amended to read:
SB197-SSA3,12,1812 71.25 (10) (b) 1. In this section, for taxable years beginning before January 1,
132006,
"public utility" means any business entity described under subd. 2. and any
14business entity which owns or operates any plant, equipment, property, franchise,
15or license for the transmission of communications or the production, transmission,
16sale, delivery, or furnishing of electricity, water or steam the rates of charges for
17goods or services of which have been established or approved by a federal, state or
18local government or governmental agency. "Public
SB197-SSA3,12,24 192. In this section, for taxable years beginning after December 31, 2005, "public
20utility" also means any business entity providing service to the public and engaged
21in the transportation of goods and persons for hire, as defined in s. 194.01 (4),
22regardless of whether or not the entity's rates or charges for services have been
23established or approved by a federal, state or local government or governmental
24agency.
SB197-SSA3, s. 28 25Section 28. 71.25 (10) (c) of the statutes is amended to read:
SB197-SSA3,13,5
171.25 (10) (c) The net business income of railroads, sleeping car companies, car
2line companies, pipeline companies, financial organizations, air carriers, and public
3utilities requiring apportionment shall be apportioned pursuant to rules of the
4department of revenue, but the income taxed is limited to the income derived from
5business transacted and property located within the state.
SB197-SSA3, s. 29 6Section 29. 71.25 (11) of the statutes is amended to read:
SB197-SSA3,13,177 71.25 (11) Department may waive factor. Where, in the case of any corporation
8engaged in business within in and without the outside this state of Wisconsin and
9required to apportion its income as provided in sub. (6), it shall be shown to the
10satisfaction of the department of revenue that the use of any one of the 3 factors
11provided in sub. (6) gives an unreasonable or inequitable final average ratio because
12of the fact that such corporation does not employ, to any appreciable extent in its
13trade or business in producing the income taxed, the factors made use of in obtaining
14such ratio, this factor may, with the approval of the department of revenue, be
15omitted in obtaining the final average ratio which is to be applied to the remaining
16net income. This subsection does not apply to taxable years beginning after
17December 31, 2007.
SB197-SSA3, s. 30 18Section 30. 71.255 of the statutes is created to read:
SB197-SSA3,13,19 1971.255 Combined reporting. (1) Definitions. In this section:
SB197-SSA3,13,2320 (a) "Brother-sister parent corporation" means a parent corporation that is a
21member of a commonly controlled group, if any members of the commonly controlled
22group are not connected to the parent corporation by stock ownership or interest
23ownership as described in par. (d).
SB197-SSA3,14,3
1(b) "Combined report" means a form prescribed by the department that
2specifies the income of each taxpayer member of a commonly controlled group
3operating as a unitary business.
SB197-SSA3,14,54 (c) "Combined reporting group" means the members of a commonly controlled
5group that are included in a combined report under sub. (2).
SB197-SSA3,14,76 (d) "Commonly controlled group" means any of the following, but does not
7include an insurer that is exempt from taxation under s. 71.45 (1):
SB197-SSA3,14,138 1. A parent corporation and any corporation or chain of corporations that are
9connected to the parent corporation by direct or indirect ownership by the parent
10corporation if the parent corporation owns stock representing more than 50% of the
11voting power of at least one of the connected corporations or if the parent corporation
12or any of the connected corporations owns stock that cumulatively represents more
13than 50% of the voting power of each of the connected corporations.
SB197-SSA3,14,1614 2. Any 2 or more corporations if a common owner directly or indirectly owns
15stock representing more than 50% of the voting power of the corporations or the
16connected corporations.
SB197-SSA3,14,2017 3. A partnership or limited liability company if a parent corporation or any
18corporation connected to the parent corporation by common ownership directly or
19indirectly owns more than a 50% interest in the capital and profits of the partnership
20or limited liability company.
SB197-SSA3,14,2221 4. Any 2 or more corporations if stock representing more than 50% of the voting
22power in each corporation are interests that cannot be separately transferred.
SB197-SSA3,15,223 5. Any 2 or more corporations if stock representing more than 50% of the voting
24power in each corporation is directly owned by, or for the benefit of, family members.
25In this subdivision, "family members" means an individual related by blood,

1marriage, or adoption within the 2nd degree of kinship as computed under s. 852.03
2(2), 1995 stats., or the spouse of such an individual.
SB197-SSA3,15,73 6. A corporation, partnership, or limited liability company if a parent
4corporation or any corporation connected to the parent corporation by common
5ownership does not hold more than a 50% ownership interest in the corporation,
6partnership, or limited liability company but effectively controls the corporation,
7partnership, or limited liability company.
SB197-SSA3,15,88 (e) "Corporation" has the meaning given in s. 71.22 (1) or 71.42 (1).
SB197-SSA3,15,99 (f) "Department" means the department of revenue.
SB197-SSA3,15,1210 (g) "Designated agent" means the taxpayer member of a commonly controlled
11group who files a group return on behalf of the taxpayer members of a combined
12reporting group.
SB197-SSA3,15,1413 (h) "Group return" means a tax return filed on behalf of the taxpayer members
14of a combined reporting group.
SB197-SSA3,15,1715 (i) "Intercompany transaction" means a transaction between corporations,
16partnerships, or limited liability companies that become members of the same
17combined reporting group immediately after the transaction.
SB197-SSA3,15,1918 (im) "Partnership" means any entity considered a partnership under section
197701 of the Internal Revenue Code.
SB197-SSA3,15,2220 (j) "Separate return" means a return filed by a corporation, regardless of
21whether the corporation is a member of a combined reporting group or is required
22to file a tax return under s. 71.24 or 71.44.
SB197-SSA3,15,2523 (k) "Taxpayer member" means a corporation that is subject to tax under s. 71.23
24(1) or (2) or 71.43, that is a member of a combined reporting group, and that files a
25combined report under this section.
SB197-SSA3,16,6
1(L) "Top tier corporation" means a member of a commonly controlled group that
2is not connected with a parent corporation by stock ownership or interest ownership
3as described in par. (d), is a parent corporation, or is a brother-sister parent
4corporation, regardless of whether it is doing business in this state or deriving
5income from sources in this state, and regardless of whether its income and
6apportionment factors are excluded from a combined report filed under this section.
SB197-SSA3,16,157 (m) "Unitary business" includes the business activities or operations of an
8entity that are of mutual benefit to, integrated with, or dependent upon or that
9contribute to activities of at least one other entity, including transactions that serve
10an operational function, as determined by the department. Two or more businesses
11are presumed to be a unitary business if the businesses have unity of ownership,
12operation, and use as indicated by centralized management or a centralized
13executive force; centralized purchasing, advertising, or accounting; intercorporate
14sales or leases; intercorporate services; intercorporate debts; intercorporate use of
15proprietary materials; interlocking directorates; or interlocking corporate officers.
SB197-SSA3,16,24 16(2) Corporations required to use combined reporting. (a) Except as provided
17in par. (b), and subject to sub. (6), a corporation that is subject to the tax imposed
18under s. 71.23 (1) or (2) or 71.43, that is a member of a commonly controlled group,
19and that is engaged, in whole or in part, in a unitary business with one or more
20members of the commonly controlled group shall compute the corporation's income
21attributable to this state by using the income computation under s. 71.26 or 71.45,
22the apportionment formula under s. 71.25 (6) or 71.45, and the tax credits under s.
2371.28 or 71.47 of all of the following that are members of the commonly controlled
24group:
SB197-SSA3,17,5
11. Any corporation organized or incorporated under the laws of the United
2States, any state of the United States, the District of Columbia, the Commonwealth
3of Puerto Rico, any possession of the United States, or any political subdivision of the
4United States, including corporations under sections 931 to 936 of the Internal
5Revenue Code.
SB197-SSA3,17,762. Any domestic international sales corporation under sections 991 to 994 of the
7Internal Revenue Code.
SB197-SSA3,17,983. Any foreign sales corporation under sections 921 to 927 of the Internal
9Revenue Code.
SB197-SSA3,17,11104. Any export trade corporation under sections 970 and 971 of the Internal
11Revenue Code.
SB197-SSA3,17,1612 5. Any corporation regardless of its place of incorporation if the average of its
13property factor under s. 71.25 (7) and its payroll factor under s. 71.25 (8), for property
14and payroll within the United States and computed on an annual basis, is at least
1520% during any part of the taxable year that a corporation is a member of the
16commonly controlled group.
SB197-SSA3,17,2017 6. Any corporation not described in subds. 1. to 5. to the extent of the
18corporation's income within the United States and the corporation's property factor
19under s. 71.25 (7) and payroll factor under s. 71.25 (8) assignable to a location within
20the United States.
SB197-SSA3,18,621 (b) A corporation that is subject to the tax imposed under s. 71.23 (1) or (2) or
2271.43, that is a member of a commonly controlled group, and that is engaged, in whole
23or in part, in a unitary business with one or more members of the commonly
24controlled group may, subject to sub. (6), compute the corporation's income
25attributable to this state by using the income computation under s. 71.26 or 71.45,

1the apportionment formula under s. 71.25 (6) or 71.45, and the tax credits under s.
271.28 or 71.47 of all the members of the commonly controlled group, regardless of the
3country in which any member of the commonly controlled group is organized or
4incorporated or conducts business, if all top tier corporations that are members of the
5commonly controlled group elect under sub. (3) to compute the corporation's income
6as provided under this paragraph.
SB197-SSA3,18,14 7(3) Computation election. (a) A top tier corporation that is a member of a
8commonly controlled group may elect on the commonly controlled group's behalf, and
9in the manner prescribed by the department, to compute the income of each
10corporation that is a member of the commonly controlled group under sub. (2) (b).
11If more than one member of the commonly controlled group is a top tier corporation,
12an election under this subsection is not effective unless all top tier corporations elect
13on the commonly controlled group's behalf, and in the manner prescribed by the
14department, to compute income under sub. (2) (b).
SB197-SSA3,18,2215 (b) A top tier corporation shall file an election made under par. (a) with the
16department before the last day of the taxable year. The top tier corporation shall
17designate a taxable year that corresponds with the taxable year of any taxpayer
18member that is subject to the tax imposed under s. 71.23 (1) or (2) or 71.43. If the
19top tier corporation fails to file the election before the last day of the taxable year
20designated under this paragraph, all members of the commonly controlled group to
21which the top tier corporation belongs, including the top tier corporation, shall
22compute income under sub. (2) (a).
SB197-SSA3,19,823 (c) Except as provided under par. (d), the members of the commonly controlled
24group subject to an election under this subsection shall compute their income under
25sub. (2) (b) for 7 taxable years, beginning with the taxable year designated under par.

1(b). Thereafter, the members of the commonly controlled group shall compute their
2income under sub. (2) (b) for periods of 7 taxable years and until any top tier
3corporation that is a member of the commonly controlled group notifies the
4department, in a manner prescribed by the department, before the last day of the last
5taxable year in any period of 7 taxable years that the top tier corporation is
6terminating the election under this subsection. A termination under this paragraph
7takes effect on the first day of the first taxable year beginning after the top tier
8corporation notifies the department under this paragraph.
SB197-SSA3,19,139 (d) The department may grant a request by a top tier corporation to terminate
10an election under this subsection before the first period of 7 taxable years under par.
11(c) expires, if the top tier corporation shows good cause for granting the request, as
12determined by the department and consistent with section 1502 of the Internal
13Revenue Code.
SB197-SSA3,19,1814 (e) Except as provided in par. (f), if an election by a top tier corporation on behalf
15of the members of a commonly controlled group under this subsection is terminated,
16no top tier corporation may make an election on behalf of the members of the same
17commonly controlled group until 7 taxable years have elapsed from the day that the
18termination of the original election took effect.
SB197-SSA3,19,2319 (f) The department may grant a request by a top tier corporation to make an
20election under this subsection before the period of 7 taxable years under par. (e) have
21elapsed, if the top tier corporation shows good cause for granting the request, as
22determined by the department and consistent with section 1502 of the Internal
23Revenue Code.
SB197-SSA3,20,10 24(4) Accounting period. For purposes of this section, the income under ss. 71.26
25and 71.45, the apportionment factors under ss. 71.25 and 71.45 and the tax credits

1under ss. 71.28 and 71.47 of all corporations that are members of a combined
2reporting group shall be determined by using the same accounting period. If the
3combined reporting group has a common parent corporation, the accounting period
4of the common parent corporation shall be used to determine the income, the
5apportionment factors, and the tax credits of all the corporations that are members
6of the combined reporting group. If the combined reporting group has no common
7parent corporation, the income, the apportionment factors, and the tax credits of the
8combined reporting group shall be determined using the accounting period of the
9member of the combined reporting group that has the most significant operations on
10a recurring basis in this state, as determined by the department.
SB197-SSA3,20,19 11(5) Filing returns. (a) Corporations with the same accounting period.
12Corporations that must file a combined report under this section and that have the
13same accounting period may file a group return, as prescribed by the department,
14that reports the aggregate state franchise or state income tax liability of all of the
15members of the combined reporting group. Corporations that are required to file a
16combined report under this section may file separate returns reporting the
17respective apportionment of the corporation's state franchise or state income tax
18liability as determined under sub. (2), if each corporation filing a separate return
19pays its own apportionment of its state franchise or state income tax liability.
SB197-SSA3,21,820 (b) Corporations with different accounting periods. Corporations that are
21required to file a combined report and that have different accounting periods shall
22file separate returns and shall use the actual figures from the corporations' financial
23records to determine the proper income and income-related computations to convert
24to a common accounting period. Corporations that are required to file a combined
25report may use a proportional method to convert income to a common accounting

1period if the results of the proportional method do not materially misrepresent the
2income apportioned to this state. The apportionment factors under ss. 71.25 and
371.45 and the tax credits under ss. 71.28 and 71.47 shall be computed according to
4the same method used to determine the income under ss. 71.26 and 71.45 for the
5common accounting period. If a corporation performs an interim closing of its
6financial records to determine the income attributable to the common accounting
7period, the actual figures from the interim closing shall be used to convert the
8apportionment factors and tax credits to the common accounting period.
SB197-SSA3,21,259 (c) Designated agent. 1. For corporations that are subject to this section and
10that file a group return under par. (a), the parent corporation of the combined
11reporting group is the sole designated agent for each member of the combined
12reporting group including the parent corporation, if the parent corporation is a
13taxpayer member of the combined reporting group and income of the parent
14corporation is included on the group return. If the parent corporation is not a
15taxpayer member or if the parent corporation's income is not included on the group
16return, the taxpayer members may appoint a taxpayer member to be the designated
17agent. If the parent corporation of the combined reporting group is not eligible to be
18the designated agent and no taxpayer member is appointed to be the designated
19agent, the designated agent is the taxpayer member that has the most significant
20operations in this state on a recurring basis, as determined by the department. The
21designated agent, as determined under this subdivision, remains the designated
22agent until the designated agent is no longer a taxpayer member or until the
23taxpayer members appoint a different designated agent. If the designated agent
24changes, the combined reporting group shall notify the department of such a change,
25in a manner prescribed by the department.
SB197-SSA3,22,23
12. The designated agent shall file the group return under par. (a), shall file for
2any extensions under s. 71.24 (7) or 71.44 (3), shall file amended reports and claims
3for refund or credit, and shall send and receive all correspondence with the
4department regarding a group return. Any notice the department sends to the
5designated agent is considered a notice sent to all members of the combined reporting
6group. Any refund with respect to a group return shall be paid to and in the name
7of the designated agent and shall discharge any liability of the state to any member
8of a combined reporting group regarding the refund. The combined reporting group
9filing a group return under par. (a) shall pay all taxes, including estimated taxes, in
10the designated agent's name. The designated agent shall participate on behalf of the
11members of the combined reporting group in any investigation or hearing requested
12by the department regarding a group return and shall produce all information
13requested by the department regarding a group return. The designated agent may
14execute a power of attorney on behalf of the members of the combined reporting
15group. The designated agent shall execute waivers, closing agreements, and other
16documents regarding a group return filed under par. (a) and any waiver, agreement,
17or document executed by the designated agent shall be considered as executed by all
18members of the combined reporting group. If the department acts in good faith with
19a combined reporting group member that represents itself as the designated agent
20for the combined reporting group but that combined reporting group member is not
21the designated agent, any action taken by the department with that combined
22reporting group member has the same effect as if that combined reporting group
23member were the actual designated agent for the combined reporting group.
SB197-SSA3,23,224 (d) Part-year members. If a corporation becomes a member of a combined
25reporting group or ceases to be a member of a combined reporting group after the

1beginning of a common accounting period, the corporation's income shall be
2apportioned to this state as follows:
SB197-SSA3,23,113 1. If the corporation is required to file 2 or more short period federal returns
4for the common accounting period, the income for the short period that the
5corporation was a member of a combined reporting group shall be determined as
6provided under sub. (2), the corporation shall join in filing a combined report for that
7short period, and the corporation may join in filing a group return for that short
8period. The income for the remaining short period shall be reported on a separate
9return under s. 71.26 or 71.45. If the corporation becomes a member of another
10combined reporting group in the remaining short period, the corporation's income
11shall be determined for the remaining short period as provided under sub. (2).
SB197-SSA3,23,1312 2. If the corporation is not required to file federal short period returns, the
13corporation shall file a separate return. Income shall be determined as follows:
SB197-SSA3,23,1514 a. As provided under sub. (2) for any period that the corporation was a member
15of a combined reporting group.
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