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SB62,63,1816 (k) "Intangible expenses" has the meaning given in s. 71.22 (3g) for corporations
17taxable under this subchapter and the meaning given in s. 71.42 (1sg) for
18corporations taxable under subch. VII.
SB62,63,2119 (L) "Interest expenses" has the meaning given in s. 71.22 (3m) for corporations
20taxable under this subchapter and the meaning given in s. 71.42 (1t) for corporations
21taxable under subch. VII.
SB62,64,222 (m) "Pass-through entity" means a general or limited partnership, an
23organization of any kind treated as a partnership for tax purposes under this
24chapter, a tax-option corporation, a real estate investment trust, a regulated

1investment company, a real estate mortgage investment conduit, a financial asset
2securitization investment trust, a trust, or an estate.
SB62,65,43 (n) "Unitary business" means a single economic enterprise that is made up
4either of separate parts of a single business entity, of multiple business entities that
5are related under section 267 or 1563 of the Internal Revenue Code, or of a commonly
6controlled group of business entities that are sufficiently interdependent,
7integrated, and interrelated through their activities so as to provide a synergy and
8mutual benefit that produces a sharing or exchange of value among them and a
9significant flow of value to the separate parts. Two or more business entities are
10presumed to be a unitary business if the businesses have unity of ownership,
11operation, and use as indicated by a centralized management or a centralized
12executive force; centralized purchasing, advertising, or accounting; intercorporate
13sales or leases; intercorporate services, including administrative, employee benefits,
14human resources, legal, financial, and cash management services; intercorporate
15debts; intercorporate use of proprietary materials; interlocking directorates; or
16interlocking corporate officers. In no event and under no circumstances shall the
17preceding sentence be construed as exclusive of any and all other factors indicative
18of a unitary business. For purposes of this section, the term "unitary business" shall
19be broadly construed, to the extent permitted by the U.S. Constitution. The members
20of a combined group shall be jointly and severally liable for costs, penalties, interests,
21and taxes associated with the combined report. Any business conducted by a
22pass-through entity that is owned directly or indirectly by a corporation shall be
23treated as conducted by the corporation, to the extent of the corporation's distributive
24share of the pass-through entity's income, regardless of the percentage of the
25corporation's ownership interest. A business conducted directly or indirectly by one

1corporation is unitary with that portion of a business conducted by another
2corporation through its direct or indirect interest in a pass-through entity if there
3is a synergy and exchange and flow of value between the 2 parts of the business and
4the 2 corporations are members of the same commonly controlled group.
SB62,65,12 5(2) Corporations required to use combined reporting. (a) A corporation, not
6including a corporation of which all its income is exempt from taxation under s. 71.26
7(1), engaged in a unitary business with one or more other corporations shall report
8its share of income from that unitary business in the amount determined by a
9combined report filed by a designated agent of the unitary business, as determined
10under sub. (7). The combined report shall include the income, determined under sub.
11(3), and apportionment factor or factors determined under sub. (5), of every
12corporation engaged in the unitary business, except as provided in pars. (b) to (f).
SB62,65,1713 (b) A foreign corporation that is a combined group member shall include in the
14combined report income that is derived only from sources within the United States
15as provided in sections 861 to 865 of the Internal Revenue Code. The foreign
16corporation shall include in the combined report its apportionment factor or factors
17related only to that income.
SB62,65,2318 (c) Except as provided in par. (d), if 80 percent or more of a corporation's
19worldwide income is active foreign business income, as defined in section 861 (c) (1)
20(B) of the Internal Revenue Code, the income and apportionment factor or factors of
21the corporation shall not be included in the combined report, but the corporation
22shall compute and allocate or apportion its income from the unitary business
23separately.
SB62,66,224 (d) The combined report of the unitary business of which a consolidated foreign
25operating corporation is a member shall include, and the separate return filed by the

1consolidated foreign operating corporation shall exclude, the following amounts, to
2the extent that they are attributable to the unitary business:
SB62,66,83 1. An income amount equal to the interest expenses and intangible expenses
4that are paid, accrued, or incurred by any combined group member to or for the
5benefit of the consolidated foreign operating corporation, except to the extent such
6amounts constitute income to the consolidated foreign operating corporation from
7sources outside the United States under sections 861 to 865 of the Internal Revenue
8Code.
SB62,66,189 2. To the extent that the amounts were not included under subd. 1., interest
10income and income generated from intangible property received or accrued by the
11consolidated foreign operating corporation, except to the extent such amounts
12constitute income from sources outside the United States under sections 861 to 865
13of the Internal Revenue Code. For purposes of this subdivision, income generated
14from intangible property includes income related to the direct or indirect acquisition,
15use, maintenance, management, ownership, sale, exchange, or any other disposition
16of intangible property; income from factoring transactions or discounting
17transactions; royalty, patent, technical, and copyright fees; licensing fees; and other
18similar income.
SB62,66,2319 3. Dividends paid or accrued by a real estate investment trust to the
20consolidated foreign operating corporation, if the real estate investment trust is not
21a qualified real estate investment trust as defined in s. 71.22 (9ad) and the dividend
22income is from sources within the United States under sections 861 to 865 of the
23Internal Revenue Code.
SB62,66,2524 4. Income of the consolidated foreign operating corporation that is equal to
25gains derived from the sale of real or personal property located in the United States.
SB62,67,2
15. The apportionment factor or factors attributable to the income described in
2subds 1. to 4.
SB62,67,53 (e) Except for the amounts in par. (d), a consolidated foreign operating
4corporation shall compute and allocate or apportion its income from the unitary
5business separately.
SB62,67,116 (f) 1. The department may require that a combined report include the income
7and associated apportionment factor or factors of any person who is not otherwise
8included in a combined group under this subsection, but who is a member of a unitary
9business, in order to reflect proper apportionment of income of the entire unitary
10business. The department may require that a combined report include the income
11and associated apportionment factor or factors of persons that are not corporations.
SB62,67,2112 2. If the department determines that the reported income or loss of a member
13of a combined group engaged in a unitary business with any person not otherwise
14included in the combined group under this subsection represents an avoidance or
15evasion of tax by the person or the combined group member, the department may
16require all or any part of the income or loss and associated apportionment factor or
17factors of the person be included in or excluded from the combined report for the
18unitary business or may require the use of a different apportionment factor or
19factors. The department may require that a combined report include or exclude the
20income or loss and associated apportionment factor or factors of persons that are not
21corporations.
SB62,68,222 3. The authority granted under this paragraph is in addition to, and not a
23limitation of or dependent on, the provisions in this chapter enacted to prevent tax
24avoidance or evasion or to clearly reflect the income of any person. Any
25determination by the department under this paragraph is presumed correct and the

1person challenging the determination has the burden of proving by clear and
2convincing evidence that the determination is incorrect.
SB62,68,4 3(3) Components of income subject to tax. Each member is responsible for tax
4based on its taxable income or loss apportioned or allocated to this state, including:
SB62,68,105 (a) Its share of any business income apportionable to this state of each of the
6combined groups of which it is a member, as determined under subs. (4) and (5). For
7financial organizations, as defined in ss. 71.04 (8) (a) and 71.25 (10) (a), business
8income includes interest, dividends, and receipts from investments of any kind. For
9purposes of this section, a financial organization shall treat the expenses associated
10with an investment as business expenses.
SB62,68,1311 (b) Its share of any business income apportionable to this state of a distinct
12business activity conducted within and outside the state wholly by the member, as
13determined under s. 71.25 or 71.45.
SB62,68,1514 (c) Its income from a business conducted wholly by the member entirely within
15the state.
SB62,68,1716 (d) Its income sourced to this state from the sale or exchange of capital assets,
17and from involuntary conversions, as determined under sub. (4) (i).
SB62,68,1818 (e) Its nonbusiness income or loss allocable to this state.
SB62,68,2119 (f) Its income that is realized from the purchase and subsequent sale or
20redemption of lottery prizes, if the winning tickets were originally bought in this
21state.
SB62,68,2422 (g) Its income or loss allocated or apportioned in an earlier year, required to be
23taken into account as state source income or loss during the taxable year, other than
24a net business loss carry-forward.
SB62,68,2525 (h) Its net business loss carry-forward, as determined under sub. (6).
SB62,69,8
1(4) Business income of the combined group. (a) The business income of a
2combined group is the sum of the income of each member of the combined group as
3determined under the Internal Revenue Code, as modified under s. 71.26 or 71.45,
4and except as provided under pars. (b) to (j). If a unitary business includes income
5from a pass-through entity, the pass-through entity income to be included in the
6total income of the combined group shall be the member of the combined group's
7direct and indirect distributive share of the pass-through entity's unitary business
8income.
SB62,69,159 (b) 1. Subtract any apportionable income of a distinct business activity
10conducted within and outside the state wholly by the member, income from a
11business conducted wholly by the member entirely within this state, the member's
12nonbusiness income, the member's income realized from the purchase and
13subsequent sale or redemption of lottery prizes if the winning tickets were originally
14bought in this state, and its income allocated or apportioned in an earlier year
15required to be taken into account as state source income during the taxable year.
SB62,69,2116 2. Add any apportionable expense or loss of a distinct business activity
17conducted within and outside the state wholly by the member, expense or loss from
18a business conducted wholly by the member entirely within this state, the member's
19nonbusiness expense or loss, its loss allocated or apportioned in an earlier year
20required to be taken into account as state source loss during the taxable year, and
21its net business loss carry-forward, except as provided in par. (e).
SB62,70,222 (c) For combined group members that are consolidated foreign operating
23corporations, include only the income described in sub. (2) (d) 2. to 4. A combined
24group may deduct expenses properly attributable to a consolidated foreign operating

1corporation's income described in sub. (2) (d) 2. to 4., subject to ss. 71.30 (2) and (2m)
2and 71.80 (1) (b) and (1m).
SB62,70,63 (d) The modifications provided under ss. 71.26 (2) (a) 7., 8., and 9. and 71.45
4(2) (a) 16., 17., and 18. shall not apply with respect to interest expenses or intangible
5expenses paid, accrued, or incurred by a combined group member to or for the benefit
6of a consolidated foreign operating corporation.
SB62,70,87 (e) Subtract any pre-apportionment net business loss carry-forward
8deduction, as provided in sub. (6) (b).
SB62,70,169 (f) Except as provided in sub. (2) (d) 3. and except if the modification under s.
1071.26 (3) (j) applies, dividends paid by one combined group member to another shall
11be, to the extent that the dividends are paid out of the earnings and profits of the
12unitary business included in the combined report, whether in the current taxable
13year or in a prior taxable year, subtracted from the income of the recipient. This
14paragraph does not apply to dividends received from members of the unitary
15business that were not part of the combined group during the calendar year
16preceding the receipt of the dividends.
SB62,70,2317 (g) Except as otherwise provided by rule, business income or loss from an
18intercompany transaction between members of the same combined group shall be
19deferred as provided under U.S. Treasury Regulation 1.1502-13. Upon the
20occurrence of any of the following events, deferred business income or loss resulting
21from an intercompany transaction between members of a combined group shall be
22included in the income of the seller and shall be apportioned as business income or
23loss recognized immediately before the event:
SB62,70,2524 1. The object of the deferred intercompany transaction is resold by the buyer
25to an entity that is not a member of the combined group.
SB62,71,3
12. The object of the deferred intercompany transaction is resold by the buyer
2to an entity that is a member of the combined group for use outside the unitary
3business in which the buyer and seller are engaged.
SB62,71,64 3. The object of the deferred intercompany transaction is converted by the
5buyer or is otherwise transferred to a use outside the unitary business in which the
6buyer and seller are engaged.
SB62,71,87 4. The buyer and seller are no longer members of the same combined group,
8regardless of whether the members are in the same unitary business.
SB62,71,199 (h) A charitable expense incurred by a member of a combined group shall, to
10the extent allowable as a deduction under section 170 of the Internal Revenue Code,
11be subtracted first from the business income of the combined group, subject to the
12income limitations of that section as applied to the entire business income of the
13combined group, and any remaining amount shall then be treated as a nonbusiness
14expense allocable to the member that incurred the expense, subject to the income
15limitations of that section applied to the nonbusiness income of that specific member.
16Any charitable deduction disallowed under this paragraph, but allowed as a
17carryover deduction in a subsequent year, shall be treated as originally incurred in
18the subsequent year by the same member and this paragraph shall apply in the
19subsequent year in determining the allowable deduction in that year.
SB62,71,2320 (i) Gain or loss from the sale or exchange of capital assets, property described
21by section 1231 (a) (3) of the Internal Revenue Code, and property subject to an
22involuntary conversion, shall be removed from the total separate net income of each
23member of a combined group and shall be apportioned and allocated as follows:
SB62,72,424 1. For short-term capital gains or losses, long-term capital gains or losses,
25gains or losses under section 1231 of the Internal Revenue Code, and involuntary

1conversions, all combined group members' business gains and losses shall be
2combined within each class, and each class of net business gain or loss separately
3apportioned to each member using the member's apportionment factor or factors
4determined under sub. (5).
SB62,72,115 2. Each member shall then net its apportioned business gain or loss for all
6classes, including any such apportioned business gain and loss from other combined
7groups, against the member's nonbusiness gain and loss for all classes allocated to
8this state, as provided under sections 1222 and 1231 of the Internal Revenue Code,
9without regard to any of the member's gains or losses from the sale or exchange of
10capital assets, property described under section 1231 of the Internal Revenue Code,
11and involuntary conversions that are nonbusiness items allocated to another state.
SB62,72,1512 3. Any state source income or loss, if the loss is not subject to the limitations
13of section 1211 of the Internal Revenue Code, of a member that results from the
14application of subds. 1. and 2. shall then be applied to all other state source income
15or loss of that member.
SB62,72,1916 4. Any state source loss of a member that is subject to the limitations of section
171211 of the Internal Revenue Code shall be carried forward or carried back by that
18member and shall be treated as state source short-term capital loss incurred by that
19member for the year for which the carry-forward or carry-back applies.
SB62,72,2320 (j) Any expense of one member of the combined group that is directly or
21indirectly attributable to the nonbusiness or exempt income of another member of
22the unitary business shall be allocated to that other member of the unitary business
23as corresponding nonbusiness or exempt expense, as appropriate.
SB62,73,6 24(5) Member's share of business income of the combined group. (a) For
25purposes of this subsection, each member of a combined group is doing business in

1this state if any member of the combined group is doing business in this state and
2that business relates to the combined group's unitary business. Except as provided
3in par. (b), a taxpayer's share of the business income apportionable to this state of
4each combined group of which it is a member shall be the product of the business
5income of the combined group as determined under sub. (4) and the taxpayer's
6modified sales factor from the combined group, determined as follows:
SB62,73,127 1. For a member that is subject to apportionment under s. 71.25 (9), the
8numerator of the modified sales factor includes the member's sales associated with
9the combined group's unitary business in this state. Sales under s. 71.25 (9) (b) 2m.
10and 3. and (c) shall be included in the numerator of the modified sales factor if no
11member of the combined group is within the jurisdiction of the destination state for
12income or franchise tax purposes.
SB62,73,1613 2. For a member that is subject to apportionment using a receipts factor under
14the department's rules pursuant to s. 71.25 (10), the numerator of the modified sales
15factor includes the member's Wisconsin receipts associated with the combined
16group's unitary business in this state, as provided by such rules.
SB62,73,1917 3. For a member that is subject to apportionment under s. 71.45 (3), the
18numerator of the modified sales factor includes the member's premiums that are
19associated with the combined group's unitary business in this state.
SB62,73,2420 4. The denominator of the modified sales factor shall include the denominator
21of the sales factor for each combined group member described in subd. 1., the
22denominator of the receipts factor for each combined group member described in
23subd. 2., and the denominator of the premiums factor for each combined group
24member described in subd. 3.
SB62,74,7
15. For a member that is required under the department's rules to use an
2apportionment factor or factors other than the sales factor, receipts factor, or
3premiums factor, the numerator of the modified sales factor for such member is its
4Wisconsin apportionment percentage on a separate entity basis based on the rules
5prescribed by the department, multiplied by the member's total sales, as defined in
6s. 71.25 (9) (e) and (f). The denominator of the modified sales factor for such member
7is the member's total sales as defined in s. 71.25 (9) (e) and (f).
SB62,74,148 6. The numerator and denominator, described in subds. 1. to 5., shall include
9the sales, receipts, or premiums of pass-through entities that are owned directly or
10indirectly by a corporation in proportion to a ratio the numerator of which is the
11amount of the corporation's distributive share of the pass-through entity's unitary
12business income included in the income of the combined group under sub. (4) and the
13denominator of which is the amount of the pass-through entity's total unitary
14business income.
SB62,74,1615 7. The modified sales factor shall exclude transactions between members of the
16same combined group.
SB62,74,2117 8. For purposes of determining the numerator of the modified sales factor or
18any apportionment factor or factors determined under par. (b), a taxpayer is
19considered to be within the jurisdiction for income or franchise tax purposes of any
20state in which any member of its combined group is within the jurisdiction for income
21or franchise tax purposes.
SB62,75,922 (b) If 2 or more members of a combined group would in the absence of this
23section be required to use differing apportionment formulas from one another, and
24if the business income of the combined group derived from business transacted in
25this state of that combined group cannot be ascertained with reasonable certainty

1by use of the modified sales factor as provided in par. (a), the combined group may
2petition the department to use a different apportionment computation for the
3combined report. This paragraph does not apply if less than 30 percent of the
4business income of the combined group would in the absence of this section be
5required to be apportioned using a factor or factors other than a single sales factor,
6a single receipts factor, or a single premiums factor. The department shall deny the
7petition if the taxpayer cannot show, by clear and convincing evidence, that the
8apportionment methods described in this subsection do not clearly reflect the income
9of the unitary business attributable to this state.
SB62,75,19 10(6) Credits, net business losses, and post-apportionment deductions. (a)
11Except as provided in par. (b), no tax credit, Wisconsin net business loss
12carry-forward, or other post-apportionment deduction earned by one member of the
13combined group, but not fully used by or allowed to that member, may be used in
14whole or in part by another member of the combined group or applied in whole or in
15part against the total income of the combined group. A member of a combined group
16may use a carry-forward of a credit, Wisconsin net business loss carry-forward, or
17other post-apportionment deduction otherwise allowable under s. 71.26 or 71.45,
18that was incurred by that same member in a taxable year beginning before the
19effective date of this paragraph .... [LRB inserts date].
SB62,76,220 (b) A combined group member's share of a Wisconsin net business loss
21computed on a combined report for a taxable year beginning on or after the effective
22date of this paragraph .... [LRB inserts date], is subject to the carry-forward period
23and limitations provided in s. 71.26 (4), if the member is subject to tax under this
24subchapter, or s. 71.45 (4), if the member is subject to tax under subchapter VII. A

1member may use such Wisconsin net business loss, or share it among the members
2of the unitary business filing the combined report, as follows:
SB62,76,83 1. For the taxable year in which the Wisconsin net business loss from the
4unitary business is generated, such loss shall first be offset by the member against
5its Wisconsin income for that same taxable year from sources other than the unitary
6business. In subsequent years, the member shall offset such loss first against income
7from that same unitary business in the manner described in subd. 2. and then from
8sources other than the unitary business.
SB62,76,209 2. If the member is included in the combined report of the same unitary
10business for the taxable year for which the member will offset the loss, the member
11shall convert its Wisconsin net business loss carry-forward attributable to the
12unitary business to a pre-apportionment net business loss carry-forward in the
13manner described in subd. 3. and offset it against the combined group's business
14income computed under sub. (4). Any amount of pre-apportionment net business
15loss carry-forward not offset by the combined group's business income shall be
16converted back to a Wisconsin net business loss carry-forward in the manner
17described in subd. 4. and offset against the member's income, if any, from sources
18other than the unitary business. The carry-forward period and limitations set forth
19in ss. 71.26 (4) and 71.45 (4) shall apply in the same manner as if the loss was not
20converted to a pre-apportionment net business loss carry-forward before used.
SB62,77,221 3. For purposes of subd. 2, the pre-apportionment net business loss
22carry-forward for each year for which a combined group member has available
23Wisconsin net business loss is the member's apportioned share of the Wisconsin net
24business loss computed on the combined report for the year in which the loss was

1generated, divided by the member's Wisconsin apportionment percentage computed
2on that same combined report.
SB62,77,83 4. A combined group member's pre-apportionment net business loss
4carry-forward computed under subd. 3, but not used, shall be converted back to a
5Wisconsin net business loss carry-forward by multiplying the member's apportioned
6share of the remaining Wisconsin net business loss computed on the combined report
7for the year in which the loss was generated by the member's Wisconsin
8apportionment percentage computed on that same combined report.
SB62,77,159 5. Except as provided by the department by rule, if a corporation may no longer
10be included in the combined report, as determined under this section, that
11corporation's share of Wisconsin net business loss carry-forward from the combined
12group may not be shared among or transferred to any other members of the combined
13group or members of other combined groups, but the corporation may claim the loss
14carry-forward against its own income attributable to other unitary businesses or
15other sources of income, subject to the limitations under ss. 71.26 (4) or 71.45 (4).
SB62,77,24 16(7) Designated agent. (a) Each combined group shall have one designated
17agent. The designated agent is the parent corporation of the combined group. If
18there is no such parent corporation, the designated agent may be appointed by the
19members. If there is no such parent corporation and no member is appointed, the
20designated agent is the member that has the most significant operations in this state
21on a recurring basis, as determined by the department. The designated agent may
22change only when the designated agent is no longer a member of the combined group,
23in which case the succeeding designated agent shall notify the department of the
24change in the manner prescribed by the department.
SB62,78,3
1(b) Only the designated agent may act on behalf of the members of the combined
2group for matters relating to the combined report. The designated agent's
3responsibilities include:
SB62,78,44 1. Filing a combined report under sub. (2) (a).
SB62,78,55 2. Filing any extension under s. 71.24 or 71.44.
SB62,78,66 3. Filing any amended combined reports or claims for refunds or credits.
SB62,78,87 4. Sending and receiving all correspondence with the department regarding the
8combined report.
SB62,78,129 5. Remitting all taxes, including estimated taxes, to the department. For
10purposes of computing interest on late payments, all payments remitted are deemed
11to be made on a pro rata basis by all members of the combined group, unless
12otherwise specified by the designated agent.
SB62,78,1813 6. Participating on behalf of the combined group members in any investigation
14or hearing requested by the department regarding a combined report, producing all
15information requested by the department regarding the combined report, and filing
16any appeal related to the combined report, investigation, or hearing. Any appeal
17filed by the designated agent shall be considered to be filed by all members of the
18combined group.
SB62,78,2319 7. Executing waivers, closing agreements, powers of attorney, and other
20documents as necessary or required regarding the combined report filed under sub.
21(2) (a). Any waiver, agreement, power of attorney, or document executed by the
22designated agent shall be considered as executed by all members of the combined
23group.
SB62,79,3
18. Receiving notices regarding the combined report. Any such notice the
2designated agent receives is considered received by all members of the combined
3group.
SB62,79,64 9. Receiving refunds relating to the combined report. Any such refund shall
5be paid to and in the name of the designated agent and shall discharge any liability
6of the state to any member of the combined group regarding the refund.
SB62,79,77 10. Other responsibilities as determined by rule by the department.
SB62,79,158 (c) Acts contrary to those described in par. (b) are unauthorized acts that do not
9bind the department in any manner. The department may choose to receive the
10benefits or assume the obligations of any such unauthorized acts. The department
11is bound by acts contrary to those described in par. (b) only if the department takes
12affirmative steps to expressly manifest its intent to receive the benefits or assume
13the obligations of any such acts. If the department takes such affirmative steps to
14ratify an unauthorized act, the unauthorized act relates back to the time of the
15unauthorized act.
SB62,79,1916 (d) The department may relieve the designated agent from any of the duties
17described in par. (b). Unless the department provides for such relief by rule, a
18designated agent shall obtain written approval from the department to be relieved
19of the duties described in par. (b).
SB62,79,21 20(8) Taxable year of combined group. The combined group's taxable year is
21determined as follows:
SB62,79,2522 (a) If 2 or more members of a combined group file a federal consolidated return,
23the combined group's taxable year is the taxable year of the federal consolidated
24group. In all other cases, the taxable year is the taxable year of the designated agent
25under sub. (7).
SB62,80,3
1(b) If a taxable year of a member of a combined group differs from the taxable
2year of the combined group, the designated agent shall elect to determine the portion
3of that member's income to be included in one of the following ways:
SB62,80,54 1. A separate income statement prepared from the books and records for the
5months included in the combined group's taxable year.
SB62,80,76 2. Including all of the income for the year that ends during the combined group's
7taxable year.
SB62,80,118 (c) For corporations that are subject to an election under par. (b), the same
9election shall be made for each member of the combined group subject to the election,
10the same election shall be made in each succeeding year, and the election is
11irrevocable except upon written approval by the department.
SB62,80,18 12(9) Part-year members of a combined group. If a corporation becomes a
13member of a combined group or ceases to be a member of a combined group after the
14beginning of the taxable year of the combined group, the corporation's income shall
15be determined as provided under subs. (3), (4), and (5) for the portion of the year in
16which the corporation was a member of the combined group and that income shall
17be included in the combined report. The income for the remaining short period shall
18be reported on a separate return or separate combined report.
SB62,81,5 19(10) Transition. The department shall deem timely paid the estimated tax
20payments attributable to income includable in the combined report for installments
21that become due during the period beginning on January 1, 2009, and ending on the
22effective date of this subsection .... [LRB inserts date], provided that such estimated
23tax payments are paid by the next installment due date that follows in sequence
24following the effective date of this subsection .... [LRB inserts date]. However, if the
25next installment due date that follows in sequence following the effective date of this

1subsection .... [LRB inserts date], is less than 45 days after the effective date of this
2subsection .... [LRB inserts date], such estimated tax payments, in addition to the
3payment due less than 45 days after the effective date of this subsection .... [LRB
4inserts date], shall be deemed timely paid if paid by the next subsequent installment
5due date.
SB62, s. 132 6Section 132. 71.26 (2) (a) 4. of the statutes is amended to read:
SB62,81,127 71.26 (2) (a) 4. Plus the amount of the credit computed under s. 71.28 (1dd),
8(1de), (1di), (1dj), (1dL), (1dm), (1ds), (1dx), (1dy), (3g), (3h), (3n), (3p), (3r), (3t), (3w),
9(5e), (5f), (5g), (5h), (5i), (5j), and (5k) and not passed through by a partnership,
10limited liability company, or tax-option corporation that has added that amount to
11the partnership's, limited liability company's, or tax-option corporation's income
12under s. 71.21 (4) or 71.34 (1k) (g).
SB62, s. 133 13Section 133. 71.26 (2) (a) 7. of the statutes is amended to read:
SB62,81,1814 71.26 (2) (a) 7. Plus the amount deducted or excluded under the Internal
15Revenue Code for interest expenses and, rental expenses, intangible expenses, and
16management fees
that are directly or indirectly paid, accrued, or incurred to, or in
17connection directly or indirectly with one or more direct or indirect transactions with,
18one or more related entities.
SB62, s. 134 19Section 134. 71.26 (2) (a) 9. of the statutes is amended to read:
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