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).
AB40-ASA1-AA7,14,106
71.34
(1k) (j) An addition shall be made for any amount deducted or excluded
7under the Internal Revenue Code for interest expenses
,
and rental expenses
,
8intangible expenses, and management fees that are directly or indirectly paid,
9accrued, or incurred to, or in connection directly or indirectly with one or more direct
10or indirect transactions with, one or more related entities.
AB40-ASA1-AA7,14,1712
71.34
(1k) (L) A deduction shall be allowed for the amount added, pursuant to
13par. (j) or s. 71.05 (6) (a) 24., 71.26 (2) (a) 7., or 71.45 (2) (a) 16., to the federal income
14of a related entity that paid interest expenses
,
or rental expenses
, intangible
15expenses, or management fees to the corporation, to the extent that the related entity
16could not offset such amount with the deduction allowable under par. (k) or s. 71.05
17(6) (b) 45., 71.26 (2) (a) 8., or 71.45 (2) (a) 17.
AB40-ASA1-AA7,14,2321
71.42
(1t) For purposes of
ss. s. 71.45 (2) (a) 16. and 18.
and 71.255 (2) (d) 1.,
22"interest expenses" means interest that would otherwise be deductible under section
23163 of the Internal Revenue Code, as adjusted under s. 71.45 (2).".
AB40-ASA1-AA7,15,233
71.43
(2) Franchise tax on corporations. For the privilege of exercising its
4franchise, buying or selling lottery prizes if the winning tickets were originally
5bought in this state or doing business in this state in a corporate capacity, except as
6provided under s. 71.23 (3), every domestic or foreign corporation, except
7corporations specified in ss. 71.26 (1) and 71.45 (1) (a), shall annually pay a franchise
8tax according to or measured by its entire Wisconsin net income of the preceding
9taxable year at the rates set forth in s. 71.46 (2). In addition, except as provided in
10ss. 71.23 (3), 71.26 (1) and 71.45 (1) (a), a corporation that ceases doing business in
11this state shall pay a special franchise tax according to or measured by its entire
12Wisconsin net income for the taxable year during which the corporation ceases doing
13business in this state at the rate under s. 71.46 (2). Every corporation organized
14under the laws of this state shall be deemed to be residing within this state for the
15purposes of this franchise tax. All provisions of this chapter and ch. 73 relating to
16income taxation of corporations shall apply to franchise taxes imposed under this
17subsection, unless the context requires otherwise. The tax imposed by this
18subsection on insurance companies subject to taxation under this chapter shall be
19based on Wisconsin net income computed under s. 71.45, and no other provision of
20this chapter relating to computation of taxable income for other corporations shall
21apply to such insurance companies
, except for s. 71.255. All other provisions of this
22chapter shall apply to insurance companies subject to taxation under this chapter
23unless the context clearly requires otherwise.".
AB40-ASA1-AA7,16,4
4"
Section 2015eb. 71.45 (2) (a) 16. of the statutes is amended to read:
AB40-ASA1-AA7,16,95
71.45
(2) (a) 16. By adding to federal taxable income any amount deducted or
6excluded under the Internal Revenue Code for interest expenses
, and rental
7expenses
, intangible expenses, and management fees that are directly or indirectly
8paid, accrued, or incurred to, or in connection directly or indirectly with one or more
9direct or indirect transactions with, one or more related entities.
AB40-ASA1-AA7,16,1611
71.45
(2) (a) 18. A deduction shall be allowed for the amount added, pursuant
12to subd. 16. or s. 71.05 (6) (a) 24., 71.26 (2) (a) 7., or 71.34 (1k) (j), to the federal income
13of a related entity that paid interest expenses
,
or rental expenses
, intangible
14expenses, or management fees to the insurer, to the extent that the related entity
15could not offset such amount with the deduction allowable under subd. 17. or s. 71.05
16(6) (b) 45., 71.26 (2) (a) 8., or 71.34 (1k) (k).".
AB40-ASA1-AA7,17,919
71.47
(4) (ad) 1. Except as provided in subds. 2. and 3., any corporation may
20credit against taxes otherwise due under this chapter an amount equal to 5 percent
21of the amount obtained by subtracting from the corporation's qualified research
22expenses, as defined in section
41 of the Internal Revenue Code, except that
23"qualified research expenses" includes only expenses incurred by the claimant,
24incurred for research conducted in this state for the taxable year, except that a
1taxpayer may elect the alternative computation under section
41 (c) (4) of the
2Internal Revenue Code and that election applies until the department permits its
3revocation, except as provided in par. (af), and except that "qualified research
4expenses" does not include compensation used in computing the credit under subs.
5(1dj) and (1dx), the corporation's base amount, as defined in section
41 (c) of the
6Internal Revenue Code, except that gross receipts used in calculating the base
7amount means gross receipts from sales attributable to Wisconsin under s. 71.25 (9)
8(b) 1. and 2.,
(d), (df)
1., and
2., (dh)
1., 2., and 3., (dj), and (dk). Section
41 (h) of the
9Internal Revenue Code does not apply to the credit under this paragraph.
AB40-ASA1-AA7,18,311
71.47
(4) (ad) 2. For taxable years beginning after June 30, 2007, any
12corporation may credit against taxes otherwise due under this chapter an amount
13equal to 10 percent of the amount obtained by subtracting from the corporation's
14qualified research expenses, as defined in section
41 of the Internal Revenue Code,
15except that "qualified research expenses" includes only expenses incurred by the
16claimant for research related to designing internal combustion engines for vehicles,
17including expenses related to designing vehicles that are powered by such engines
18and improving production processes for such engines and vehicles, incurred for
19research conducted in this state for the taxable year, except that a taxpayer may elect
20the alternative computation under section
41 (c) (4) of the Internal Revenue Code
21and that election applies until the department permits its revocation, except as
22provided in par. (af), and except that "qualified research expenses" does not include
23compensation used in computing the credit under subs. (1dj) and (1dx), the
24corporation's base amount, as defined in section
41 (c) of the Internal Revenue Code,
25except that gross receipts used in calculating the base amount means gross receipts
1from sales attributable to Wisconsin under s. 71.25 (9) (b) 1. and 2.
, (df) 1. and
2., (dh)
21., 2., and 3., (dj), and (dk) (d). Section
41 (h) of the Internal Revenue Code does not
3apply to the credit under this paragraph.
AB40-ASA1-AA7,18,235
71.47
(4) (ad) 3. For taxable years beginning after June 30, 2007, any
6corporation may credit against taxes otherwise due under this chapter an amount
7equal to 10 percent of the amount obtained by subtracting from the corporation's
8qualified research expenses, as defined in section
41 of the Internal Revenue Code,
9except that "qualified research expenses" includes only expenses incurred by the
10claimant for research related to the design and manufacturing of energy efficient
11lighting systems, building automation and control systems, or automotive batteries
12for use in hybrid-electric vehicles, that reduce the demand for natural gas or
13electricity or improve the efficiency of its use, incurred for research conducted in this
14state for the taxable year, except that a taxpayer may elect the alternative
15computation under section
41 (c) (4) of the Internal Revenue Code and that election
16applies until the department permits its revocation, except as provided in par. (af),
17and except that "qualified research expenses" does not include compensation used
18in computing the credit under subs. (1dj) and (1dx), the corporation's base amount,
19as defined in section
41 (c) of the Internal Revenue Code, except that gross receipts
20used in calculating the base amount means gross receipts from sales attributable to
21Wisconsin under s. 71.25 (9) (b) 1. and 2.
, (df) 1. and
2., (dh) 1., 2., and 3., (dj), and
22(dk) (d). Section
41 (h) of the Internal Revenue Code does not apply to the credit
23under this paragraph.".
AB40-ASA1-AA7,19,2
137. Page 855, line 8: delete "and 2., (dh) 1., 2., and 3., (dj), and (dk)" and
2substitute "
and 2.,
and (dh)
1., 2., and 3., (dj), and (dk)".
AB40-ASA1-AA7,19,209
71.80
(1) (b) In any case of 2 or more organizations, trades or businesses
10(whether or not incorporated, whether or not organized in the United States,
and 11whether or not affiliated
, and whether or not unitary) owned or controlled directly
12or indirectly by the same interests, the secretary or the secretary's delegate may
13distribute, apportion or allocate gross income, deductions, credits or allowances
14between or among such organizations, trades or businesses, if the secretary
15determines that such distribution, apportionment or allocation is necessary in order
16to prevent evasion of taxes or clearly to reflect the income of any of such
17organizations, trades or businesses. The authority granted under this subsection is
18in addition to, and not a limitation of or dependent on, the provisions of sub. (23) and
19ss. 71.05 (6) (a) 24. and (b) 45., 71.26 (2) (a) 7. and 8., 71.34 (1k) (j) and (k), and 71.45
20(2) (a) 16. and 17.
