SB197-SSA3,25,109 (b) Adjust each member's income, as determined under par. (a), as provided
10under s. 71.30.
SB197-SSA3,25,1611 (c) From the amount determined under par. (b), subtract intercompany
12transactions, as provided by rule by the department, such that intercompany
13accounts of assets, liabilities, equities, income, costs, or expenses are excluded from
14the income determination to accurately reflect the income, the apportionment
15factors, and the tax credits in a combined report that is filed under this section. An
16intercompany transaction includes the following:
SB197-SSA3,25,1917 1. Income or gain from sales, exchanges, contributions, or other transfers of
18tangible or intangible property from a member of the combined reporting group to
19another member of the combined reporting group.
SB197-SSA3,25,2120 2. Annual rent paid by a member of the combined reporting group to another
21member of the combined reporting group.
SB197-SSA3,25,2322 3. Annual license fees or royalties paid by a member of the combined reporting
23group to another member of the combined reporting group.
SB197-SSA3,26,3
14. Loans, advances, receivables, and similar items that one member of the
2combined reporting group owes to another member of the combined reporting group,
3including interest income and interest expense related to these items.
SB197-SSA3,26,54 5. Stock or other equity of a member of the combined reporting group that is
5owned or controlled by another member of the combined reporting group.
SB197-SSA3,26,86 6. Except as provided by rule by the department, dividends paid out of earnings
7or profits and paid by a member of the combined reporting group to another member
8of the combined reporting group.
SB197-SSA3,26,109 7. Management or service fees paid by a member of the combined reporting
10group to another member of the combined reporting group.
SB197-SSA3,26,1211 8. Income or expenses allocated or charged by a member of the combined
12reporting group to another member of the combined reporting group.
SB197-SSA3,26,1613 (d) From the amount determined under par. (c) for each member of a combined
14reporting group, subtract nonapportionable income, net of related expenses, and add
15nonapportionable losses, net of related expenses, to determine each member's
16apportionable net income or apportionable net loss.
SB197-SSA3,26,1917 (e) Calculate the apportionment factors under sub. (7) and multiply each
18member's apportionable net income or apportionable net loss, as determined under
19par. (d), by the member's apportionment factor as determined under sub. (7).
SB197-SSA3,26,2120 (f) For each corporation, combine the amounts determined under par. (e) for
21each trade or business.
SB197-SSA3,26,2422 (g) To the amounts determined under par. (f), add each member's
23nonapportionable income attributable to this state and subtract each member's
24nonapportionable losses attributable to this state.
SB197-SSA3,27,2
1(h) If the combined reporting group is not filing a group return, combine the
2amounts determined under par. (g) for all members of the combined reporting group.
SB197-SSA3,27,53 (i) If the combined reporting group is filing a group return, combine the
4amounts determined under par. (g) for all members of the combined reporting group
5that join in filing the group return.
SB197-SSA3,27,76 (j) From the amount determined under par. (h) or (i), as appropriate, subtract
7the combined reporting group's net operating loss as determined under sub. (8).
SB197-SSA3,27,9 8(7) Apportionment factor computation under combined reporting. For the
9purposes of sub. (2), this state's apportionment factors are determined as follows:
SB197-SSA3,27,1210 (a) 1. Determine the numerator and the denominator of the apportionment
11factors as determined under s. 71.25 or 71.45, as appropriate, for each member of the
12combined reporting group, except as provided in subd. 2.
SB197-SSA3,27,2213 2. If a member of a combined reporting group is not subject to the tax imposed
14under s. 71.23 or 71.43 because it does not have sufficient connection to this state as
15a separate entity for income or franchise tax purposes, as determined by the
16department, the numerator of the member's sales factor under s. 71.25 (9) or
17apportionment factor under s. 71.45 (3) is zero. If a member of a combined reporting
18group is a corporation engaged in business wholly within this state, as provided
19under s. 71.25 (4), the numerator and denominator of the member's apportionment
20factors is the same. If a member of a combined reporting group is not subject to an
21income or franchise tax as a separate entity in the state to which a sale is attributed,
22the sale is attributed to this state.
SB197-SSA3,27,2423 (b) Subtract intercompany transactions under sub. (6) (c) from both the
24numerators and the denominators as determined under par. (a).
SB197-SSA3,28,3
1(c) Add the denominators of the apportionment factors for each member of the
2combined reporting group, as determined under par. (b), to arrive at the combined
3denominator.
SB197-SSA3,28,64 (d) Compute each corporation's apportionment factors by dividing the
5corporation's numerator as determined under par. (b) by the combined denominator
6as determined under par. (c).
SB197-SSA3,28,15 7(8) Net business loss carry-over. (a) For taxable years beginning after
8December 31, 2003, any net business loss of a corporation that is a member of a
9combined reporting group as determined under sub. (6) for the taxable year that is
10not offset against the net income of the other members of the combined reporting
11group in the same taxable year may be carried forward as provided under s. 71.26
12(4), except that any net business loss carried forward to a subsequent taxable year
13may be offset against either the net income of the corporation that incurred the net
14business loss or the net income of the combined reporting group of which the
15corporation is a member, in the manner prescribed by rule by the department.
SB197-SSA3,28,1916 (b) A corporation that is a member of a combined reporting group may not carry
17forward a net business loss from a taxable year beginning before January 1, 2004,
18if the corporation was not subject to the tax imposed under s. 71.23 or 71.43 for the
19same taxable year.
SB197-SSA3,29,520 (c) A corporation that is a member of a combined reporting group and that
21incurred a Wisconsin net business loss in a taxable year beginning before January
221, 2004, that has not been offset against the corporation's net income in subsequent
23taxable years, may offset the remaining net business loss against the corporation's
24net income as determined under sub. (6). If the corporation joins in filing a group
25return under sub. (5) and the corporation's remaining net business loss exceeds the

1corporation's net income as determined under sub. (6) for the first taxable year
2beginning after December 31, 2003, that the corporation is subject to this section, the
3corporation may annually offset up to 20% of the remaining net business loss against
4the net income of the other members of the combined reporting group that join in
5filing a group return under sub. (5).
SB197-SSA3,29,15 6(9) Net income or loss for corporations with different accounting periods.
7If a taxpayer member has a different accounting period than the common accounting
8period of the combined reporting group, the combined reporting group shall assign
9the combined report income or loss for the combined reporting group, as determined
10under sub. (6), proportionally to the number of months in the taxpayer member's
11taxable year that are wholly or partly within the combined reporting group's common
12accounting period. The total amount of income or loss assigned to a taxpayer member
13under this subsection for the portions of the common accounting period that are
14included in the taxpayer member's taxable period shall be aggregated or netted to
15determine the taxpayer member's apportionable income.
SB197-SSA3,29,17 16(10) Net tax liability. (a) A corporation that files a separate return under this
17section shall determine its net tax liability as follows:
SB197-SSA3,29,1918 1. Multiply the amount determined under sub. (6) (i) for the corporation by the
19tax rate under s. 71.27 or 71.46, as appropriate.
SB197-SSA3,29,2420 2. From the amount determined under subd. 1., subtract the corporation's tax
21credits under s. 71.28 or 71.47 based on the corporation's expenses. The corporation
22may not offset any of its tax credits, or tax credit carry forwards, against the tax
23liability of any other member of the combined reporting group to which the
24corporation belongs.
SB197-SSA3,30,2
1(b) A combined reporting group that files a group return under this section shall
2determine its net tax liability as follows:
SB197-SSA3,30,43 1. Multiply the amount determined under sub. (6) (i) for the combined reporting
4group by the tax rate under s. 71.27 or 71.46, as appropriate.
SB197-SSA3,30,65 2. From the amount determined under subd. 1., subtract the tax credits under
6ss. 71.28 and 71.47 for all taxpayer members of the combined reporting group.
SB197-SSA3,30,13 7(11) Estimated tax payments. (a) For the first 2 taxable years that a group
8return is filed under this section, estimated taxes under ss. 71.29 and 71.48 may be
9paid on a group basis or on a separate basis. The amount of any separate estimated
10taxes paid in the first 2 taxable years that a group return is filed shall be credited
11against the group's tax liability. The designated agent shall notify the department
12of any estimated taxes paid on a separate basis in the first 2 taxable years that a
13group return is filed.
SB197-SSA3,31,214 (b) If a group return is filed for 2 consecutive taxable years, estimated taxes
15under ss. 71.29 and 71.48 shall be paid on a group basis for each subsequent taxable
16year until such time as separate returns are filed by the corporations that were
17members of a combined reporting group that filed group returns under this section.
18For each taxable year in which combined estimated taxes are paid under this
19subsection, the department shall consider the combined reporting group filing a
20group return to be one taxpayer for purposes of computing interest on the
21underpayment of estimated taxes. If a corporation subject to this section files a
22separate return in a taxable year following a year in which the corporation joined in
23filing a group return, the amount of any estimated tax payments made on a group
24basis for the previous year shall be credited against the tax liability of the corporation

1that files a separate return, as allocated by the designated agent with the
2department's approval.
SB197-SSA3,31,73 (c) If a combined reporting group pays estimated taxes on a group basis for a
4taxable year or for any part of a taxable year, and the members of the combined
5reporting group file separate returns for the taxable year, the designated agent, with
6the department's approval, shall allocate the estimated tax payments among the
7members of the combined reporting group.
SB197-SSA3,31,128 (d) If estimated taxes are paid on a group basis for a taxable year but the group
9does not file a group return for the taxable year and did not file a group return for
10the previous taxable year, the estimated tax shall be credited to the member of the
11combined reporting group that made the estimated tax payment on the group's
12behalf.
SB197-SSA3,31,1513 (e) If a combined reporting group that will file a group return applies for a
14refund of estimated taxes under s. 71.29 (3m), the department shall determine the
15combined reporting group's eligibility for a refund on a group basis.
SB197-SSA3,31,18 16(12) Interest for underpayment of estimated tax. (a) General. The amount
17of interest that is due for an underpayment of estimated taxes under sub. (11) shall
18be computed as follows:
SB197-SSA3,31,2219 1. For the first year in which a combined reporting group files a group return,
20the amount of interest that is due for an underpayment of estimated taxes shall be
21determined by using the aggregate of the tax and income shown on the returns filled
22by the members of the combined reporting group for the previous year.
SB197-SSA3,32,223 2. For any year in which a combined reporting group files a group return, the
24department shall determine if the combined reporting group qualifies for the
25exception to interest under s. 71.29 (7) (b) by using the aggregate of the amount of

1the tax liability and the amount of the net income of all members of the combined
2reporting group.
SB197-SSA3,32,73 3. For any year in which a combined reporting group files a group return, the
4department shall determine if the installment provisions under s. 71.29 (9) or (10)
5apply to the combined reporting group by using the aggregate of the amount of the
6tax liability and the amount of the net income of all members of the combined
7reporting group.
SB197-SSA3,32,148 4. For estimated taxes paid under sub. (11) (c), the amount of interest that is
9due from a member of a combined reporting group for an underpayment of estimated
10taxes paid by the member shall be determined by using the member's separate items
11from the group return filed for the previous year and the member's allocated share
12of the combined estimated tax payments for the current year. The designated agent
13shall report the member's allocated share of the combined estimated tax payments
14for the current year to the department, in the manner prescribed by the department.
SB197-SSA3,32,1815 (b) Entering a group. If a corporation becomes a member of a combined
16reporting group during a common accounting period under sub. (4), the combined
17reporting group shall make the following adjustments to determine the amount of
18interest that is due for an underpayment of estimated taxes:
SB197-SSA3,32,2319 1. If a corporation becomes a member of a combined reporting group at the
20beginning of a common accounting period, the combined reporting group shall
21include with the corresponding items on the group return for the previous common
22accounting period the separate items shown on the corporation's return for the
23previous taxable year.
SB197-SSA3,33,324 2. If a corporation is not a member of a combined reporting group for an entire
25common accounting period, the combined reporting group shall include with the

1corresponding items on the group return for the current taxable year the
2corporation's separate items for that portion of the common accounting period that
3the corporation was not a member of the combined reporting group.
SB197-SSA3,33,94 3. To determine the separate items under subds. 1. and 2., if a corporation is
5a member of a combined reporting group during a portion of a common accounting
6period in which the corporation becomes a member of another combined reporting
7group, the corporation's separate items shall include the separate items that are
8attributed to the corporation by the designated agent of the first combined reporting
9group.
SB197-SSA3,33,1310 (c) Leaving a group. If a corporation leaves a combined reporting group during
11a common accounting period under sub. (4), the combined reporting group shall make
12the following adjustments to determine the amount of interest that is due for an
13underpayment of estimated taxes:
SB197-SSA3,33,1814 1. If a corporation leaves a combined reporting group before the first day of a
15common accounting period, the combined reporting group shall exclude the separate
16items that the designated agent of the combined reporting group attributed to the
17corporation for the preceding common accounting period from the corresponding
18items of the combined reporting group for the preceding common accounting period.
SB197-SSA3,33,2319 2. If a corporation leaves a combined reporting group after the first day of a
20common accounting period, the combined reporting group shall exclude the separate
21items that the designated agent of the combined reporting group attributed to the
22corporation for the common accounting period from the corresponding items of the
23combined reporting group for the current common accounting period.
SB197-SSA3,34,624 3. A corporation that leaves a combined reporting group shall use the separate
25items that the designated agent of the combined reporting group attributed to the

1corporation to determine the amount of interest that is owed for any underpayment
2of estimated taxes under sub. (11) for the first taxable year beginning after the day
3that the corporation leaves the combined reporting group or, for a corporation that
4has a different accounting period than the combined reporting group, for the portion
5of the corporation's separate taxable year that remains after the day that the
6corporation leaves the combined reporting group.
SB197-SSA3,34,22 7(13) Assessment notice. If the department sends a notice of taxes that are
8owed by a combined reporting group to the designated agent of a combined reporting
9group, the notice shall name each corporation that joined in filing the group return
10related to the notice during any part of the period covered by the notice. The
11department's failure to name a corporation on a notice under this subsection shall
12not invalidate the notice as to the unnamed corporation. Any levy, lien, or other
13proceeding to collect the amount of a tax assessment under this section shall name
14the corporation from which the department shall collect the assessment. If a
15corporation that joined in the filing of a group return leaves the combined reporting
16group, the department shall send the corporation a copy of any notice sent to the
17combined reporting group under this subsection if the corporation notifies the
18department that the corporation is no longer a member of the combined reporting
19group and if the corporation requests in writing that the department send notices
20under this subsection to the corporation. The department's failure to comply with
21a corporation's request to receive a notice does not affect the tax liability of the
22corporation.
SB197-SSA3,35,3 23(14) Liability for tax, interest, and penalty. If members of a combined
24reporting group file a group return, the members of the combined reporting group
25shall be jointly and severally liable for any combined tax, interest, or penalty. The

1liability of a member of a combined reporting group for any combined tax, interest,
2or penalty shall not be reduced by an agreement with another member of the
3combined reporting group or by an agreement with another person.
SB197-SSA3,35,9 4(15) Presumptions and burden of proof. A commonly controlled group shall
5be presumed to be engaged in a unitary business and all of the income of the unitary
6business shall be presumed to be apportionable business income under this section.
7A corporation, partnership, or limited liability company has the burden of proving
8that it is not a member of a commonly controlled group that is subject to this section.
9The department shall promulgate rules to implement this subsection.
SB197-SSA3,35,14 10(16) Information. (a) A member of a commonly controlled group shall retain
11any information, and provide such information to the department at the
12department's request, that the department considers necessary to administer this
13section, including all documents submitted to or obtained from the Internal Revenue
14Service or other states regarding income and taxing jurisdiction.
SB197-SSA3,35,1915 (b) A member of a commonly controlled group shall identify, at the department's
16request, the name, job title, and address of the member's principal officers or
17employees who have substantial knowledge of, and access to, documents that specify
18the pricing policies, profit centers, cost centers, and methods of allocating income and
19expenses among cost centers related to the operations of the member.
SB197-SSA3,35,2420 (c) A member of a commonly controlled group shall retain all information
21provided under par. (a) during any period for which the member's tax liability to this
22state is subject to adjustment, including any period in which the state may assess
23additional income or franchise taxes, an appeal of the member's tax assessment is
24pending, or a suit related to the member's tax liability is pending.
SB197-SSA3,36,5
1(17) Corporations not filing. If a corporation that is required to report under
2this section directly or indirectly owns or controls any other corporation, or is directly
3or indirectly owned or controlled by another corporation, the department may
4require that such other corporations join in filing a combined report under this
5section.
SB197-SSA3, s. 31 6Section 31. 71.26 (3) (x) of the statutes is amended to read:
SB197-SSA3,36,117 71.26 (3) (x) Sections 1501 to 1505, 1551, 1552, 1563 and 1564 (relating to
8consolidated returns) are excluded, except to the extent that they pertain to
9intercompany transactions and the carry forward of net business loss under s. 71.255
10and except that they are modified so that more than 50% ownership is substituted
11for at least 80% ownership
.
SB197-SSA3, s. 32 12Section 32. 71.26 (4) of the statutes is amended to read:
SB197-SSA3,37,413 71.26 (4) Net business loss carry-forward. A corporation, except a tax-option
14corporation or an insurer to which s. 71.45 (4) applies, may offset against its
15Wisconsin net business income any Wisconsin net business loss sustained in any of
16the next 15 preceding taxable years, if the corporation was subject to taxation under
17this chapter in the taxable year in which the loss was sustained, to the extent not
18offset by other items of Wisconsin income in the loss year and by Wisconsin net
19business income of any year between the loss year and the taxable year for which an
20offset is claimed. For purposes of this subsection Wisconsin net business income or
21loss shall consist of all the income attributable to the operation of a trade or business
22in this state, less the business expenses allowed as deductions in computing net
23income. The Wisconsin net business income or loss of corporations engaged in
24business within and without the state shall be determined under s. 71.255 or 71.25
25(6) and (10) to (12). Nonapportionable losses having a Wisconsin situs under s. 71.25

1(5) (b) shall be included in Wisconsin net business loss; and nonapportionable income
2having a Wisconsin situs under s. 71.25 (5) (b), whether taxable or exempt, shall be
3included in other items of Wisconsin income and Wisconsin net business income for
4purposes of this subsection.
SB197-SSA3, s. 33 5Section 33. 71.29 (2) of the statutes is amended to read:
SB197-SSA3,37,86 71.29 (2) Who shall pay. Every Except as provided in s. 71.255 (11), every
7corporation subject to tax under s. 71.23 (1) or (2) and every virtually exempt entity
8subject to tax under s. 71.125 or 71.23 (1) or (2) shall pay an estimated tax.
SB197-SSA3, s. 34 9Section 34. 71.44 (1) (a) of the statutes is amended to read:
SB197-SSA3,38,210 71.44 (1) (a) Every Except as provided in par. (e), every corporation, except
11corporations all of whose income is exempt from taxation and except as provided in
12sub. (1m), shall furnish to the department a true and accurate statement, on or before
13March 15 of each year, except that returns for fiscal years ending on some other date
14than December 31 shall be furnished on or before the 15th day of the 3rd month
15following the close of such fiscal year and except that returns for less than a full
16taxable year shall be furnished on or before the date applicable for federal income
17taxes under the internal revenue code, in such manner and form and setting forth
18such facts as the department deems necessary to enforce this chapter. Every
19corporation that is required to furnish a statement under this paragraph and that
20has income that is not taxable under this subchapter shall include with its statement
21a report that identifies each item of its nontaxable income. The statement shall be
22subscribed by the president, vice president, treasurer, assistant treasurer, chief
23accounting officer or any other officer duly authorized so to act. In the case of a return
24made for a corporation by a fiduciary, the fiduciary shall subscribe the return. The
25fact that an individual's name is subscribed on the return shall be prima facie

1evidence that the individual is authorized to subscribe the return on behalf of the
2corporation.
SB197-SSA3, s. 35 3Section 35. 71.44 (1) (e) of the statutes is created to read:
SB197-SSA3,38,64 71.44 (1) (e) A corporation that is a member of a commonly controlled group,
5as defined in s. 71.255 (1) (d), and engaged in a unitary business, as defined in s.
671.255 (1) (m), shall file a tax return under s. 71.255.
SB197-SSA3, s. 36 7Section 36. 71.45 (3) (intro.) of the statutes is amended to read:
SB197-SSA3,38,168 71.45 (3) Apportionment. (intro.) With respect Except as provided in sub. (3d),
9to determine Wisconsin income for purposes of the franchise tax, domestic insurers
10not engaged in the sale of life insurance but which that, in the taxable year, have
11collected received premiums, other than life insurance premiums, written on
12subjects of
for insurance on property or risks resident, located or to be performed
13outside this state, there shall be subtracted from multiply the net income figure
14derived by application of sub. (2) (a) to arrive at Wisconsin income constituting the
15measure of the franchise tax an amount calculated by multiplying such adjusted
16federal taxable income
by the arithmetic average of the following 2 percentages:
SB197-SSA3, s. 37 17Section 37. 71.45 (3) (a) of the statutes is amended to read:
SB197-SSA3,39,818 71.45 (3) (a) The Subject to sub. (3d), the percentage of total determined by
19dividing the sum of direct
premiums written on all property and risks for insurance
20other than life insurance, with respect to all property and risks resident, located, or
21to be performed in this state, and assumed premiums written for reinsurance, other
22than life insurance, with respect to all property and risks resident, located, or to be
23performed in this state, by the sum of direct premiums written for insurance on all
24property and risks, other than life insurance,
wherever located during the taxable
25year, as reflects
, and assumed premiums written on insurance for reinsurance on all

1property and risks
, other than life insurance, where the subject of insurance was
2resident, located or to be performed outside this state
wherever located. In this
3paragraph, "direct premiums" means direct premiums as reported for the taxable
4year on an annual statement that is filed by the insurer with the commissioner of
5insurance under s. 601.42 (1g) (a). In this paragraph, "assumed premiums" means
6assumed reinsurance premiums from domestic insurance companies as reported for
7the taxable year on an annual statement that is filed with the commissioner of
8insurance under s. 601.42 (1g) (a)
.
SB197-SSA3, s. 38 9Section 38. 71.45 (3) (b) of the statutes is renumbered 71.45 (3) (b) 1. and
10amended to read:
SB197-SSA3,39,1511 71.45 (3) (b) 1. The Subject to sub. (3d), the percentage of determined by
12dividing the payroll, exclusive of life insurance payroll, paid in this state in the
13taxable year by
total payroll, exclusive of life insurance payroll, paid everywhere in
14the taxable year as reflects such compensation paid outside this state.
15Compensation
.
SB197-SSA3,39,24 162. Under subd. 1., payroll is paid outside in this state if the individual's service
17is performed entirely outside in this state; or the individual's service is performed
18both within and without in and outside this state, but the service performed within
19outside this state is incidental to the individual's service without in this state; or
20some service is performed without in this state and the base of operations, or if there
21is no base of operations, the place from which the service is directed or controlled is
22without in this state, or the base of operations or the place from which the service is
23directed or controlled is not in any state in which some part of the service is
24performed, but the individual's residence is outside in this state.
SB197-SSA3, s. 39 25Section 39. 71.45 (3d) of the statutes is created to read:
SB197-SSA3,40,7
171.45 (3d) Phase in; domestic insurers. (a) Except as provided in par. (d), for
2taxable years beginning after December 31, 2005, and before January 1, 2007, a
3domestic insurer that is subject to apportionment under sub. (3) and this subsection
4shall multiply the net income figure derived by the application of sub. (2) by an
5apportionment fraction composed of the percentage under sub. (3) (a) representing
660% of the fraction and the percentage under sub. (3) (b) 1. representing 40% of the
7fraction.
SB197-SSA3,40,138 (b) Except as provided in par. (d), for taxable years beginning after December
931, 2006, and before January 1, 2008, a domestic insurer that is subject to
10apportionment under sub. (3) and this subsection shall multiply the net income
11figure derived by the application of sub. (2) by an apportionment fraction composed
12of the percentage under sub. (3) (a) representing 80% of the fraction and the
13percentage under sub. (3) (b) 1. representing 20% of the fraction.
SB197-SSA3,40,1714 (c) Except as provided in par. (d), for taxable years beginning after December
1531, 2007, a domestic insurer that is subject to apportionment under sub. (3) and this
16subsection shall multiply the net income figure derived by the application of sub. (2)
17by the percentage under sub. (3) (a).
SB197-SSA3,41,218 (d) If a taxpayer who is subject to apportionment under sub. (3) has a net gain
19of 100 employees in this state in any taxable year beginning after the effective date
20of this paragraph .... [revisor inserts date], and before January 1, 2008, the
21taxpayer's remaining net income may, at the taxpayer's option, be apportioned to this
22state by an apportionment fraction composed of the percentage under sub. (3) (a)
23beginning with the taxable year in which the employees are hired, except that if the
24taxpayer does not retain such employees in this state for at least 3 consecutive

1taxable years, the taxpayer shall apportion the taxpayer's remaining net income as
2provided under pars. (a) to (c), as appropriate.
SB197-SSA3, s. 40 3Section 40. 71.45 (3e) of the statutes is created to read:
SB197-SSA3,41,84 71.45 (3e) Apportionment formula computation. (a) 1. For taxable years
5beginning before January 1, 2008, if both the numerator and the denominator used
6to determine the percentage under sub. (3) (a) related to a taxpayer's net income are
7zero, the percentage under sub. (3) (a) is eliminated from the apportionment formula
8to determine the taxpayer's income under sub. (3).
SB197-SSA3,41,129 2. For taxable years beginning after December 31, 2007, if both the numerator
10and the denominator used to determine the percentage under sub. (3) (a) related to
11a taxpayer's net income are zero, none of the taxpayer's net income is apportioned
12to this state.
SB197-SSA3,41,1713 (b) 1. For taxable years beginning before January 1, 2008, if the numerator
14used to determine the percentage under sub. (3) (a) related to a taxpayer's net income
15is a negative number and the denominator used to determine the percentage under
16sub. (3) (a) related to a taxpayer's net income is a positive number, a negative number,
17or zero, the percentage under sub. (3) (a) is zero.
SB197-SSA3,41,2218 2. For taxable years beginning after December 31, 2007, if the numerator used
19to determine the percentage under sub. (3) (a) related to a taxpayer's net income is
20a negative number and the denominator used to determine the percentage under
21sub. (3) (a) related to a taxpayer's net income is a positive number, a negative number,
22or zero, none of the taxpayer's net income is apportioned to this state.
SB197-SSA3,42,223 (c) 1. For taxable years beginning before January 1, 2008, if the numerator used
24to determine the percentage under sub. (3) (a) related to a taxpayer's net income is
25a positive number and the denominator used to determine the percentage under sub.

1(3) (a) related to a taxpayer's net income is zero or a negative number, the percentage
2under sub. (3) (a) is one.
SB197-SSA3,42,73 2. For taxable years beginning after December 31, 2007, if the numerator used
4to determine the percentage under sub. (3) (a) related to a taxpayer's net income is
5a positive number and the denominator used to determine the percentage under sub.
6(3) (a) related to a taxpayer's net income is zero or a negative number, all of the
7taxpayer's net income is apportioned to this state.
SB197-SSA3, s. 41 8Section 41. 71.45 (3m) of the statutes is amended to read:
SB197-SSA3,42,169 71.45 (3m) Arithmetic average. The Except as provided in sub. (3d), the
10arithmetic average of the 2 percentages referred to in sub. (3) shall be applied to the
11net income figure arrived at by the successive application of sub. (2) (a) and (b) with
12respect to Wisconsin insurers to which sub. (2) (a) and (b) applies and which have
13collected received premiums, other than life insurance premiums, written upon for
14insurance, other than life insurance, where the subject of such insurance was on
15property or risks
resident, located or to be performed outside this state, to arrive at
16Wisconsin income constituting the measure of the franchise tax.
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