Amendment AA7-ASA1-AB40

AB40-ASA1-AA7, s. 2013h Section 2013h. 71.34 (1k) (L) of the statutes is amended to read:

AB40-ASA1-AA7,14,17 71.34 (1k) (L) A deduction shall be allowed for the amount added, pursuant to par. (j) or s. 71.05 (6) (a) 24., 71.26 (2) (a) 7., or 71.45 (2) (a) 16., to the federal income of a related entity that paid interest expenses, or rental expenses, intangible expenses, or management fees to the corporation, to the extent that the related entity could not offset such amount with the deduction allowable under par. (k) or s. 71.05 (6) (b) 45., 71.26 (2) (a) 8., or 71.45 (2) (a) 17.

AB40-ASA1-AA7, s. 2013i Section 2013i. 71.42 (1sg) of the statutes is repealed.

AB40-ASA1-AA7, s. 2013j Section 2013j. 71.42 (1sh) of the statutes is repealed.

AB40-ASA1-AA7, s. 2013k Section 2013k. 71.42 (1t) of the statutes is amended to read:

AB40-ASA1-AA7,14,23 71.42 (1t) For purposes of ss. s. 71.45 (2) (a) 16. and 18. and 71.255 (2) (d) 1., "interest expenses" means interest that would otherwise be deductible under section 163 of the Internal Revenue Code, as adjusted under s. 71.45 (2).".

AB40-ASA1-AA7,14,24 32. Page 827, line 16: after that line insert:

AB40-ASA1-AA7,15,1 " Section 2014e. 71.42 (3c) of the statutes is repealed.

AB40-ASA1-AA7, s. 2014f Section 2014f. 71.43 (2) of the statutes is amended to read:

AB40-ASA1-AA7,15,23 71.43 (2) Franchise tax on corporations. For the privilege of exercising its franchise, buying or selling lottery prizes if the winning tickets were originally bought in this state or doing business in this state in a corporate capacity, except as provided under s. 71.23 (3), every domestic or foreign corporation, except corporations specified in ss. 71.26 (1) and 71.45 (1) (a), shall annually pay a franchise tax according to or measured by its entire Wisconsin net income of the preceding taxable year at the rates set forth in s. 71.46 (2). In addition, except as provided in ss. 71.23 (3), 71.26 (1) and 71.45 (1) (a), a corporation that ceases doing business in this state shall pay a special franchise tax according to or measured by its entire Wisconsin net income for the taxable year during which the corporation ceases doing business in this state at the rate under s. 71.46 (2). Every corporation organized under the laws of this state shall be deemed to be residing within this state for the purposes of this franchise tax. All provisions of this chapter and ch. 73 relating to income taxation of corporations shall apply to franchise taxes imposed under this subsection, unless the context requires otherwise. The tax imposed by this subsection on insurance companies subject to taxation under this chapter shall be based on Wisconsin net income computed under s. 71.45, and no other provision of this chapter relating to computation of taxable income for other corporations shall apply to such insurance companies, except for s. 71.255. All other provisions of this chapter shall apply to insurance companies subject to taxation under this chapter unless the context clearly requires otherwise.".

AB40-ASA1-AA7,16,2 33. Page 827, line 22: delete the material beginning with that line and ending with page 828, line 5.

AB40-ASA1-AA7,16,3 34. Page 828, line 6: delete lines 6 to 22 and substitute:

AB40-ASA1-AA7,16,4 " Section 2015eb. 71.45 (2) (a) 16. of the statutes is amended to read:

AB40-ASA1-AA7,16,9 71.45 (2) (a) 16. By adding to federal taxable income any amount deducted or excluded under the Internal Revenue Code for interest expenses, and rental expenses, intangible expenses, and management fees that are directly or indirectly paid, accrued, or incurred to, or in connection directly or indirectly with one or more direct or indirect transactions with, one or more related entities.

AB40-ASA1-AA7, s. 2015ed Section 2015ed. 71.45 (2) (a) 18. of the statutes is amended to read:

AB40-ASA1-AA7,16,16 71.45 (2) (a) 18. A deduction shall be allowed for the amount added, pursuant to subd. 16. or s. 71.05 (6) (a) 24., 71.26 (2) (a) 7., or 71.34 (1k) (j), to the federal income of a related entity that paid interest expenses, or rental expenses, intangible expenses, or management fees to the insurer, to the extent that the related entity could not offset such amount with the deduction allowable under subd. 17. or s. 71.05 (6) (b) 45., 71.26 (2) (a) 8., or 71.34 (1k) (k).".

AB40-ASA1-AA7,16,17 35. Page 854, line 16: after that line insert:

AB40-ASA1-AA7,16,18 " Section 2109d. 71.47 (4) (ad) 1. of the statutes is amended to read:

AB40-ASA1-AA7,17,9 71.47 (4) (ad) 1. Except as provided in subds. 2. and 3., any corporation may credit against taxes otherwise due under this chapter an amount equal to 5 percent of the amount obtained by subtracting from the corporation's qualified research expenses, as defined in section 41 of the Internal Revenue Code, except that "qualified research expenses" includes only expenses incurred by the claimant, incurred for research conducted in this state for the taxable year, except that a taxpayer may elect the alternative computation under section 41 (c) (4) of the Internal Revenue Code and that election applies until the department permits its revocation, except as provided in par. (af), and except that "qualified research expenses" does not include compensation used in computing the credit under subs. (1dj) and (1dx), the corporation's base amount, as defined in section 41 (c) of the Internal Revenue Code, except that gross receipts used in calculating the base amount means gross receipts from sales attributable to Wisconsin under s. 71.25 (9) (b) 1. and 2., (d), (df) 1., and 2., (dh) 1., 2., and 3., (dj), and (dk). Section 41 (h) of the Internal Revenue Code does not apply to the credit under this paragraph.

AB40-ASA1-AA7, s. 2109e Section 2109e. 71.47 (4) (ad) 2. of the statutes is amended to read:

AB40-ASA1-AA7,18,3 71.47 (4) (ad) 2. For taxable years beginning after June 30, 2007, any corporation may credit against taxes otherwise due under this chapter an amount equal to 10 percent of the amount obtained by subtracting from the corporation's qualified research expenses, as defined in section 41 of the Internal Revenue Code, except that "qualified research expenses" includes only expenses incurred by the claimant for research related to designing internal combustion engines for vehicles, including expenses related to designing vehicles that are powered by such engines and improving production processes for such engines and vehicles, incurred for research conducted in this state for the taxable year, except that a taxpayer may elect the alternative computation under section 41 (c) (4) of the Internal Revenue Code and that election applies until the department permits its revocation, except as provided in par. (af), and except that "qualified research expenses" does not include compensation used in computing the credit under subs. (1dj) and (1dx), the corporation's base amount, as defined in section 41 (c) of the Internal Revenue Code, except that gross receipts used in calculating the base amount means gross receipts from sales attributable to Wisconsin under s. 71.25 (9) (b) 1. and 2., (df) 1. and 2., (dh) 1., 2., and 3., (dj), and (dk) (d). Section 41 (h) of the Internal Revenue Code does not apply to the credit under this paragraph.

AB40-ASA1-AA7, s. 2109f Section 2109f. 71.47 (4) (ad) 3. of the statutes is amended to read:

AB40-ASA1-AA7,18,23 71.47 (4) (ad) 3. For taxable years beginning after June 30, 2007, any corporation may credit against taxes otherwise due under this chapter an amount equal to 10 percent of the amount obtained by subtracting from the corporation's qualified research expenses, as defined in section 41 of the Internal Revenue Code, except that "qualified research expenses" includes only expenses incurred by the claimant for research related to the design and manufacturing of energy efficient lighting systems, building automation and control systems, or automotive batteries for use in hybrid-electric vehicles, that reduce the demand for natural gas or electricity or improve the efficiency of its use, incurred for research conducted in this state for the taxable year, except that a taxpayer may elect the alternative computation under section 41 (c) (4) of the Internal Revenue Code and that election applies until the department permits its revocation, except as provided in par. (af), and except that "qualified research expenses" does not include compensation used in computing the credit under subs. (1dj) and (1dx), the corporation's base amount, as defined in section 41 (c) of the Internal Revenue Code, except that gross receipts used in calculating the base amount means gross receipts from sales attributable to Wisconsin under s. 71.25 (9) (b) 1. and 2., (df) 1. and 2., (dh) 1., 2., and 3., (dj), and (dk) (d). Section 41 (h) of the Internal Revenue Code does not apply to the credit under this paragraph.".

AB40-ASA1-AA7,18,24 36. Page 855, line 7: delete "2., (df) 1." and substitute "2., (d), (df) 1.".

AB40-ASA1-AA7,19,2 37. Page 855, line 8: delete "and 2., (dh) 1., 2., and 3., (dj), and (dk)" and substitute "and 2., and (dh) 1., 2., and 3., (dj), and (dk)".

AB40-ASA1-AA7,19,4 38. Page 859, line 9: delete the material beginning with that line and ending with page 860, line 19.

AB40-ASA1-AA7,19,6 39. Page 860, line 20: delete the material beginning with that line and ending with page 862, line 17.

AB40-ASA1-AA7,19,7 40. Page 862, line 22: after that line insert:

AB40-ASA1-AA7,19,8 " Section 2129d. 71.80 (1) (b) of the statutes is amended to read:

AB40-ASA1-AA7,19,20 71.80 (1) (b) In any case of 2 or more organizations, trades or businesses (whether or not incorporated, whether or not organized in the United States, and whether or not affiliated, and whether or not unitary) owned or controlled directly or indirectly by the same interests, the secretary or the secretary's delegate may distribute, apportion or allocate gross income, deductions, credits or allowances between or among such organizations, trades or businesses, if the secretary determines that such distribution, apportionment or allocation is necessary in order to prevent evasion of taxes or clearly to reflect the income of any of such organizations, trades or businesses. The authority granted under this subsection is in addition to, and not a limitation of or dependent on, the provisions of sub. (23) and ss. 71.05 (6) (a) 24. and (b) 45., 71.26 (2) (a) 7. and 8., 71.34 (1k) (j) and (k), and 71.45 (2) (a) 16. and 17.

AB40-ASA1-AA7, s. 2129e Section 2129e. 71.80 (1m) of the statutes is repealed.

AB40-ASA1-AA7, s. 2129f Section 2129f. 71.80 (24) of the statutes is repealed.".

AB40-ASA1-AA7,19,23 41. Page 883, line 3: delete lines 3 to 19.

AB40-ASA1-AA7,20,2 42. Page 1173, line 19: delete the material beginning with that line and ending with page 1175, line 18.

AB40-ASA1-AA7,20,3 43. Page 1517, line 21: delete lines 21 and 22 and substitute:

AB40-ASA1-AA7,20,18 "(4bq) Eliminate combined reporting. The repeal of sections 71.01 (5n), 71.01 (5p), 71.01 (7v), 71.04 (7) (dj), 71.04 (7) (dk), 71.04 (8) (a) 2., 71.10 (1m), 71.22 (3g), 71.22 (3h), 71.22 (6d), 71.25 (9) (dj), 71.25 (9) (dk), 71.25 (10) (a) 2., 71.255, 71.30 (2m), 71.34 (1c), 71.34 (1d), 71.34 (1h), 71.42 (1sg), 71.42 (1sh), 71.42 (3c), 71.80 (1m), and 71.80 (24) of the statutes; the renumbering of sections 71.04 (8) (a) 1., 71.25 (5) (b), and 71.25 (10) (a) 1. of the statutes; the amendment of sections 71.01 (1b), 71.01 (1n), 71.01 (10g), 71.04 (7) (a), 71.05 (6) (a) 24., 71.05 (6) (b) 46., 71.07 (2dr) (a), 71.10 (1), 71.22 (1g), 71.22 (1r), 71.22 (1t), 71.22 (3m), 71.22 (9g), 71.25 (intro.), 71.25 (9) (a), 71.26 (2) (a) 7., 71.26 (2) (a) 9., 71.26 (3) (x), 71.28 (4) (ad) 1., 71.28 (4) (ad) 2., 71.28 (4) (ad) 3., 71.28 (4) (am) 1., 71.30 (2), 71.34 (1k) (j), 71.34 (1k) (L), 71.42 (1t), 71.43 (2), 71.45 (2) (a) 16., 71.45 (2) (a) 18., 71.47 (4) (ad) 1., 71.47 (4) (ad) 2., 71.47 (4) (ad) 3., 71.47 (4) (am), and 71.80 (1) (b) of the statutes; and the creation of sections 71.04 (7) (d), 71.04 (7) (df) 3., 71.04 (7) (dh) 4., 71.25 (5) (b) 2., 71.25 (9) (d), 71.25 (9) (df) 3., and 71.25 (9) (dh) 4. of the statutes first apply to taxable years beginning after December 31, 2011.".

AB40-ASA1-AA7,20,19 44. Page 1527, line 23: delete lines 23 and 24.

AB40-ASA1-AA7,20,20 (End)