AB40-ASA1-AA7,3,2017
71.04
(7) (df) 3. If the taxpayer is not subject to income tax in the state in which
18the gross receipts are considered received under this paragraph, but the taxpayer's
19commercial domicile is in this state, 50 percent of those gross receipts shall be
20included in the numerator of the sales factor.
AB40-ASA1-AA7,4,222
71.04
(7) (dh) 4. If the taxpayer is not subject to income tax in the state in which
23the benefit of the service is received, the benefit of the service is received in this state
24to the extent that the taxpayer's employees or representatives performed services
25from a location in this state. Fifty percent of the taxpayer's receipts that are
1considered received in this state under this paragraph shall be included in the
2numerator of the sales factor.
AB40-ASA1-AA7,4,10
10"
Section 1755h. 71.05 (6) (a) 24. of the statutes is amended to read:
AB40-ASA1-AA7,4,1511
71.05
(6) (a) 24. The amount deducted or excluded under the Internal Revenue
12Code for interest expenses
, and rental expenses
, intangible expenses, and
13management fees that are directly or indirectly paid, accrued, or incurred to, or in
14connection directly or indirectly with one or more direct or indirect transactions with,
15one or more related entities.".
AB40-ASA1-AA7,4,17
17"
Section 1760d. 71.05 (6) (b) 46. of the statutes is amended to read:
AB40-ASA1-AA7,4,2318
71.05
(6) (b) 46. An amount added, pursuant to par. (a) 24. or s. 71.26 (2) (a) 7.,
1971.34 (1k) (j), or 71.45 (2) (a) 16., to the federal income of a related entity that paid
20interest expenses
, or rental expenses
, intangible expenses, or management fees to
21the individual or fiduciary, to the extent that the related entity could not offset such
22amount with the deduction allowable under subd. 45. or s. 71.26 (2) (a) 8., 71.34 (1k)
23(k), or 71.45 (2) (a) 17.".
AB40-ASA1-AA7,5,4
311. Page 707, line 11: delete that line and substitute "(b) 1. and 2.
(d), (df)
1.
4and 2.,
and (dh)
1., 2., and 3., (dj) 1. and (dk) 1. and research expenses".
AB40-ASA1-AA7,5,2211
71.10
(1) Allocation of gross income, deductions, credits between 2 or more
12businesses. In any case of 2 or more organizations, trades or businesses (whether or
13not incorporated, whether or not organized in the United States,
and whether or not
14affiliated
, and whether or not unitary) owned or controlled directly or indirectly by
15the same interests, the secretary or the secretary's delegate may distribute,
16apportion or allocate gross income, deductions, credits or allowances between or
17among such organizations, trades or businesses, if the secretary determines that
18such distribution, apportionment or allocation is necessary in order to prevent
19evasion of taxes or clearly to reflect the income of any of such organizations, trades
20or businesses.
The authority granted under this subsection is in addition to, and not
21a limitation of or dependent on, the provisions of ss. 71.05 (6) (a) 24. and (b) 45., 71.26
22(2) (a) 7. and 8., 71.34 (1k) (j) and (k), 71.45 (2) (a) 16. and 17., and 71.80 (23).
AB40-ASA1-AA7,6,105
71.22
(1g) For purposes of s. 71.25 (9) (df)
, and (dh),
(dj), and (dk), "commercial
6domicile" means the location from which a trade or business is principally managed
7and directed, based on any factors the department determines are appropriate,
8including the location where the greatest number of employees of the trade or
9business work, have their office or base of operations, or from which the employees
10are directed or controlled.
AB40-ASA1-AA7,7,312
71.22
(1r) "Doing business in this state" includes
, except as prohibited under
13P.L. 86-272, issuing credit, debit, or travel and entertainment cards to customers in
14this state;
regularly selling products or services of any kind or nature to customers
15in this state that receive the product or service in this state; regularly soliciting
16business from potential customers in this state; regularly performing services
17outside this state for which the benefits are received in this state; regularly engaging
18in transactions with customers in this state that involve intangible property and
19result in receipts flowing to the taxpayer from within this state; holding loans
20secured by real or tangible personal property located in this state; owning, directly
21or indirectly, a general or limited partnership interest in a partnership that does
22business in this state, regardless of the percentage of ownership; and owning,
23directly or indirectly, an interest in a limited liability company that does business in
24this state, regardless of the percentage of ownership, if the limited liability company
1is treated as a partnership for federal income tax purposes.
A taxpayer doing
2business in this state for any part of the taxable year is considered to be doing
3business in this state for the entire taxable year.
AB40-ASA1-AA7,7,95
71.22
(1t) For purposes of s. 71.25 (9) (df)
, and (dh),
(dj), and (dk), "domicile"
6means an individual's true, fixed, and permanent home where the individual intends
7to remain permanently and indefinitely and to which, whenever absent, the
8individual intends to return, except that no individual may have more than one
9domicile at any time.
AB40-ASA1-AA7,7,1513
71.22
(3m) For purposes of
ss. s. 71.26 (2) (a) 7. and 9.
and 71.255 (2) (d) 1.,
14"interest expenses" means interest that would otherwise be deductible under section
15163 of the Internal Revenue Code, as modified under s. 71.26 (3).".
AB40-ASA1-AA7,7,2320
71.22
(9g) For purposes of s. 71.25 (9) (df)
, and (dh),
(dj), and (dk), "state" means
21a state of the United States, the District of Columbia, the commonwealth of Puerto
22Rico, or any territory or possession of the United States, unless the context requires
23that "state" means only the state of Wisconsin.
AB40-ASA1-AA7,8,3
171.25 Situs of income; allocation and apportionment. (intro.) For
2purposes of determining the situs of income under this section
and s. 71.255 (5) (a)
31. and 2.:
AB40-ASA1-AA7,8,116
71.25
(5) (b) 2. All income, gain, or loss from intangible property that is earned
7by a personal holding company, as defined in section
542 of the Internal Revenue
8Code, as amended to December 31, 1974, shall be allocated to the residence of the
9taxpayer, except that all income that is realized from the sale of or purchase and
10subsequent sale or redemption of lottery prizes if the winning tickets were originally
11bought in this state shall be allocated to this state.
AB40-ASA1-AA7,8,2213
71.25
(9) (a) The sales factor is a fraction, the numerator of which is the total
14sales of the taxpayer in this state during the tax period, and the denominator of
15which is the total sales of the taxpayer everywhere during the tax period. For sales
16of tangible personal property, the numerator of the sales factor is the sales of the
17taxpayer during the tax period under par. (b) 1. and 2. plus
100 50 percent of the sales
18of the taxpayer during the tax period under pars. (b) 2m. and 3. and (c).
For purposes
19of applying pars. (b) 2m. and 3. and (c), if a taxpayer is within another state's
20jurisdiction for income or franchise tax purposes for any part of the taxable year, it
21is considered to be within that state's jurisdiction for income or franchise tax
22purposes for the entire taxable year.
AB40-ASA1-AA7,9,424
71.25
(9) (d) Except as provided in pars. (df) and (dh), sales, other than sales
25of tangible personal property, are in this state if the income-producing activity is
1performed in this state. If the income-producing activity is performed both in and
2outside this state the sales shall be divided between those states having jurisdiction
3to tax such business in proportion to the direct costs of performance incurred in each
4such state in rendering this service.
AB40-ASA1-AA7,9,96
71.25
(9) (df) 3. If the taxpayer is not subject to income tax in the state in which
7the gross receipts are considered received under this paragraph, but the taxpayer's
8commercial domicile is in this state, 50 percent of those gross receipts shall be
9included in the numerator of the sales factor.
AB40-ASA1-AA7,9,1611
71.25
(9) (dh) 4. If the taxpayer is not subject to income tax in the state in which
12the benefit of the service is received, the benefit of the service is received in this state
13to the extent that the taxpayer's employees or representatives performed services
14from a location in this state. Fifty percent of the taxpayer's receipts that are
15considered received in this state under this paragraph shall be included in the
16numerator of the sales factor.
AB40-ASA1-AA7,9,24
24"
Section 1896h. 71.26 (2) (a) 7. of the statutes is amended to read:
AB40-ASA1-AA7,10,5
171.26
(2) (a) 7. Plus the amount deducted or excluded under the Internal
2Revenue Code for interest expenses
, and rental expenses
, intangible expenses, and
3management fees that are directly or indirectly paid, accrued, or incurred to, or in
4connection directly or indirectly with one or more direct or indirect transactions with,
5one or more related entities.
AB40-ASA1-AA7,10,127
71.26
(2) (a) 9. Minus the amount added, pursuant to subd. 7. or s. 71.05 (6) (a)
824., 71.34 (1k) (j), or 71.45 (2) (a) 16., to the federal income of a related entity that
9paid interest expenses
, or rental expenses
, intangible expenses, or management fees 10to the corporation, to the extent that the related entity could not offset such amount
11with the deduction allowable under subd. 8. or s. 71.05 (6) (b) 45., 71.34 (1k) (k), or
1271.45 (2) (a) 17.".
AB40-ASA1-AA7,10,1815
71.26
(3) (x) Sections 1501 to 1505, 1551, 1552, 1563 and 1564 (relating to
16consolidated returns) are excluded
, except that U.S. Treasury Regulation 1.1502-13,
17relating to deferred gain or loss from an intercompany transaction, applies to
18transactions between combined group members under s. 71.255 (4) (g).".
AB40-ASA1-AA7,11,1323
71.28
(4) (ad) 1. Except as provided in subds. 2. and 3., any corporation may
24credit against taxes otherwise due under this chapter an amount equal to 5 percent
1of the amount obtained by subtracting from the corporation's qualified research
2expenses, as defined in section
41 of the Internal Revenue Code, except that
3"qualified research expenses" includes only expenses incurred by the claimant,
4incurred for research conducted in this state for the taxable year, except that a
5taxpayer may elect the alternative computation under section
41 (c) (4) of the
6Internal Revenue Code and that election applies until the department permits its
7revocation, except as provided in par. (af), and except that "qualified research
8expenses" does not include compensation used in computing the credit under subs.
9(1dj) and (1dx), the corporation's base amount, as defined in section
41 (c) of the
10Internal Revenue Code, except that gross receipts used in calculating the base
11amount means gross receipts from sales attributable to Wisconsin under s. 71.25 (9)
12(b) 1. and 2.,
(d), (df)
1., and
2., (dh)
1., 2., and 3., (dj), and (dk). Section
41 (h) of the
13Internal Revenue Code does not apply to the credit under this paragraph.
AB40-ASA1-AA7,12,715
71.28
(4) (ad) 2. For taxable years beginning after June 30, 2007, any
16corporation may credit against taxes otherwise due under this chapter an amount
17equal to 10 percent of the amount obtained by subtracting from the corporation's
18qualified research expenses, as defined in section
41 of the Internal Revenue Code,
19except that "qualified research expenses" includes only expenses incurred by the
20claimant for research related to designing internal combustion engines for vehicles,
21including expenses related to designing vehicles that are powered by such engines
22and improving production processes for such engines and vehicles, incurred for
23research conducted in this state for the taxable year, except that a taxpayer may elect
24the alternative computation under section
41 (c) (4) of the Internal Revenue Code
25and that election applies until the department permits its revocation, except as
1provided in par. (af), and except that "qualified research expenses" does not include
2compensation used in computing the credit under subs. (1dj) and (1dx), the
3corporation's base amount, as defined in section
41 (c) of the Internal Revenue Code,
4except that gross receipts used in calculating the base amount means gross receipts
5from sales attributable to Wisconsin under s. 71.25 (9) (b) 1. and 2.
, (df) 1. and
2., (dh)
61., 2., and 3., (dj), and (dk) (d). Section
41 (h) of the Internal Revenue Code does not
7apply to the credit under this paragraph.
AB40-ASA1-AA7,13,29
71.28
(4) (ad) 3. For taxable years beginning after June 30, 2007, any
10corporation may credit against taxes otherwise due under this chapter an amount
11equal to 10 percent of the amount obtained by subtracting from the corporation's
12qualified research expenses, as defined in section
41 of the Internal Revenue Code,
13except that "qualified research expenses" includes only expenses incurred by the
14claimant for research related to the design and manufacturing of energy efficient
15lighting systems, building automation and control systems, or automotive batteries
16for use in hybrid-electric vehicles, that reduce the demand for natural gas or
17electricity or improve the efficiency of its use, incurred for research conducted in this
18state for the taxable year, except that a taxpayer may elect the alternative
19computation under section
41 (c) (4) of the Internal Revenue Code and that election
20applies until the department permits its revocation, except as provided in par. (af),
21and except that "qualified research expenses" does not include compensation used
22in computing the credit under subs. (1dj) and (1dx), the corporation's base amount,
23as defined in section
41 (c) of the Internal Revenue Code, except that gross receipts
24used in calculating the base amount means gross receipts from sales attributable to
25Wisconsin under s. 71.25 (9) (b) 1. and 2.
, (df) 1. and
2., (dh) 1., 2., and 3., (dj), and
1(dk) (d). Section
41 (h) of the Internal Revenue Code does not apply to the credit
2under this paragraph.".
AB40-ASA1-AA7,13,4
325. Page 805, line 7: delete that line and substitute "Wisconsin under s. 71.25
4(9) (b) 1. and 2.,
(d), (df)
1. and 2.,
and (dh)
1., 2., and 3., (dj), and".
AB40-ASA1-AA7,13,2110
71.30
(2) Allocation of gross income, deductions, credits between 2 or more
11businesses. In any case of 2 or more organizations, trades or businesses (whether or
12not incorporated, whether or not organized in the United States,
and whether or not
13affiliated
, and whether or not unitary) owned or controlled directly or indirectly by
14the same interests, the secretary or his or her delegate may distribute, apportion or
15allocate gross income, deductions, credits or allowances between or among such
16organizations, trades or businesses, if he or she determines that such distribution,
17apportionment or allocation is necessary in order to prevent evasion of taxes or
18clearly to reflect the income of any of such organizations, trades or businesses. The
19authority granted under this subsection is in addition to, and not a limitation of or
20dependent on, the provisions of ss. 71.05 (6) (a) 24. and (b) 45., 71.26 (2) (a) 7. and 8.,
2171.34 (1k) (j) and (k), 71.45 (2) (a) 16. and 17., and 71.80 (23).
