(6) Credits, net business losses, and post-apportionment deductions. (a) Except as provided in par. (b), no tax credit, Wisconsin net business loss carry-forward, or other post-apportionment deduction earned by one member of the combined group, but not fully used by or allowed to that member, may be used in whole or in part by another member of the combined group or applied in whole or in part against the total income of the combined group. A member of a combined group may use a carry-forward of a credit, Wisconsin net business loss carry-forward, or other post-apportionment deduction otherwise allowable under s. 71.26 or 71.45, that was incurred by that same member in a taxable year beginning before the effective date of this paragraph .... [LRB inserts date].
(b) A combined group member's share of a Wisconsin net business loss computed on a combined report for a taxable year beginning on or after the effective date of this paragraph .... [LRB inserts date], is subject to the carry-forward period and limitations provided in s. 71.26 (4), if the member is subject to tax under this subchapter, or s. 71.45 (4), if the member is subject to tax under subchapter VII. A member may use such Wisconsin net business loss, or share it among the members of the unitary business filing the combined report, as follows:
1. For the taxable year in which the Wisconsin net business loss from the unitary business is generated, such loss shall first be offset by the member against its Wisconsin income for that same taxable year from sources other than the unitary business. In subsequent years, the member shall offset such loss first against income from that same unitary business in the manner described in subd. 2. and then from sources other than the unitary business.
2. If the member is included in the combined report of the same unitary business for the taxable year for which the member will offset the loss, the member shall convert its Wisconsin net business loss carry-forward attributable to the unitary business to a pre-apportionment net business loss carry-forward in the manner described in subd. 3. and offset it against the combined group's business income computed under sub. (4). Any amount of pre-apportionment net business loss carry-forward not offset by the combined group's business income shall be converted back to a Wisconsin net business loss carry-forward in the manner described in subd. 4. and offset against the member's income, if any, from sources other than the unitary business. The carry-forward period and limitations set forth in ss. 71.26 (4) and 71.45 (4) shall apply in the same manner as if the loss was not converted to a pre-apportionment net business loss carry-forward before used.
3. For purposes of subd. 2, the pre-apportionment net business loss carry-forward for each year for which a combined group member has available Wisconsin net business loss is the member's apportioned share of the Wisconsin net business loss computed on the combined report for the year in which the loss was generated, divided by the member's Wisconsin apportionment percentage computed on that same combined report.
4. A combined group member's pre-apportionment net business loss carry-forward computed under subd. 3, but not used, shall be converted back to a Wisconsin net business loss carry-forward by multiplying the member's apportioned share of the remaining Wisconsin net business loss computed on the combined report for the year in which the loss was generated by the member's Wisconsin apportionment percentage computed on that same combined report.
5. Except as provided by the department by rule, if a corporation may no longer be included in the combined report, as determined under this section, that corporation's share of Wisconsin net business loss carry-forward from the combined group may not be shared among or transferred to any other members of the combined group or members of other combined groups, but the corporation may claim the loss carry-forward against its own income attributable to other unitary businesses or other sources of income, subject to the limitations under ss. 71.26 (4) or 71.45 (4).
(7) Designated agent. (a) Each combined group shall have one designated agent. The designated agent is the parent corporation of the combined group. If there is no such parent corporation, the designated agent may be appointed by the members. If there is no such parent corporation and no member is appointed, the designated agent is the member that has the most significant operations in this state on a recurring basis, as determined by the department. The designated agent may change only when the designated agent is no longer a member of the combined group, in which case the succeeding designated agent shall notify the department of the change in the manner prescribed by the department.
(b) Only the designated agent may act on behalf of the members of the combined group for matters relating to the combined report. The designated agent's responsibilities include:
1. Filing a combined report under sub. (2) (a).
2. Filing any extension under s. 71.24 or 71.44.
3. Filing any amended combined reports or claims for refunds or credits.
4. Sending and receiving all correspondence with the department regarding the combined report.
5. Remitting all taxes, including estimated taxes, to the department. For purposes of computing interest on late payments, all payments remitted are deemed to be made on a pro rata basis by all members of the combined group, unless otherwise specified by the designated agent.
6. Participating on behalf of the combined group members in any investigation or hearing requested by the department regarding a combined report, producing all information requested by the department regarding the combined report, and filing any appeal related to the combined report, investigation, or hearing. Any appeal filed by the designated agent shall be considered to be filed by all members of the combined group.
7. Executing waivers, closing agreements, powers of attorney, and other documents as necessary or required regarding the combined report filed under sub. (2) (a). Any waiver, agreement, power of attorney, or document executed by the designated agent shall be considered as executed by all members of the combined group.
8. Receiving notices regarding the combined report. Any such notice the designated agent receives is considered received by all members of the combined group.
9. Receiving refunds relating to the combined report. Any such refund shall be paid to and in the name of the designated agent and shall discharge any liability of the state to any member of the combined group regarding the refund.
10. Other responsibilities as determined by rule by the department.
(c) Acts contrary to those described in par. (b) are unauthorized acts that do not bind the department in any manner. The department may choose to receive the benefits or assume the obligations of any such unauthorized acts. The department is bound by acts contrary to those described in par. (b) only if the department takes affirmative steps to expressly manifest its intent to receive the benefits or assume the obligations of any such acts. If the department takes such affirmative steps to ratify an unauthorized act, the unauthorized act relates back to the time of the unauthorized act.
(d) The department may relieve the designated agent from any of the duties described in par. (b). Unless the department provides for such relief by rule, a designated agent shall obtain written approval from the department to be relieved of the duties described in par. (b).
(8) Taxable year of combined group. The combined group's taxable year is determined as follows:
(a) If 2 or more members of a combined group file a federal consolidated return, the combined group's taxable year is the taxable year of the federal consolidated group. In all other cases, the taxable year is the taxable year of the designated agent under sub. (7).
(b) If a taxable year of a member of a combined group differs from the taxable year of the combined group, the designated agent shall elect to determine the portion of that member's income to be included in one of the following ways:
1. A separate income statement prepared from the books and records for the months included in the combined group's taxable year.
2. Including all of the income for the year that ends during the combined group's taxable year.
(c) For corporations that are subject to an election under par. (b), the same election shall be made for each member of the combined group subject to the election, the same election shall be made in each succeeding year, and the election is irrevocable except upon written approval by the department.
(9) Part-year members of a combined group. If a corporation becomes a member of a combined group or ceases to be a member of a combined group after the beginning of the taxable year of the combined group, the corporation's income shall be determined as provided under subs. (3), (4), and (5) for the portion of the year in which the corporation was a member of the combined group and that income shall be included in the combined report. The income for the remaining short period shall be reported on a separate return or separate combined report.
(10) Transition. The department shall deem timely paid the estimated tax payments attributable to income includable in the combined report for installments that become due during the period beginning on January 1, 2009, and ending on the effective date of this subsection .... [LRB inserts date], provided that such estimated tax payments are paid by the next installment due date that follows in sequence following the effective date of this subsection .... [LRB inserts date]. However, if the next installment due date that follows in sequence following the effective date of this subsection .... [LRB inserts date], is less than 45 days after the effective date of this subsection .... [LRB inserts date], such estimated tax payments, in addition to the payment due less than 45 days after the effective date of this subsection .... [LRB inserts date], shall be deemed timely paid if paid by the next subsequent installment due date.
2,132
Section
132. 71.26 (2) (a) 4. of the statutes is amended to read:
71.26 (2) (a) 4. Plus the amount of the credit computed under s. 71.28 (1dd), (1de), (1di), (1dj), (1dL), (1dm), (1ds), (1dx), (1dy), (3g), (3h), (3n), (3p),
(3r), (3t), (3w), (5e), (5f), (5g), (5h), (5i), (5j), and (5k) and not passed through by a partnership, limited liability company, or tax-option corporation that has added that amount to the partnership's, limited liability company's, or tax-option corporation's income under s. 71.21 (4) or 71.34 (1k) (g).
2,133
Section
133. 71.26 (2) (a) 7. of the statutes is amended to read:
71.26 (2) (a) 7. Plus the 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.
2,134
Section
134. 71.26 (2) (a) 9. of the statutes is amended to read:
71.26 (2) (a) 9. Minus the amount added, pursuant to subd. 7. or s. 71.05 (6) (a) 24., 71.34 (1k) (j), 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 subd. 8. or s. 71.05 (6) (b) 45., 71.34 (1k) (k), or 71.45 (2) (a) 17.
2,135
Section
135. 71.26 (3) (x) of the statutes is amended to read:
71.26 (3) (x) Sections 1501 to 1505, 1551, 1552, 1563 and 1564 (relating to consolidated returns) are excluded, except that U.S. Treasury Regulation 1.1502-13, relating to deferred gain or loss from an intercompany transaction, applies to transactions between combined group members under s. 71.255 (4) (g).
2,136
Section
136. 71.28 (1dy) of the statutes is created to read:
71.28 (1dy) Economic development tax credit. (a) Definition. In this subsection, "claimant" means a person who files a claim under this subsection and is certified under s. 560.701 (2) and authorized to claim tax benefits under s. 560.703.
(b) Filing claims. Subject to the limitations under this subsection and ss. 560.701 to 560.706, for taxable years beginning after December 31, 2008, a claimant may claim as a credit against the tax imposed under s. 71.23, up to the amount of the tax, the amount authorized for the claimant under s. 560.703.
(c) Limitations. 1. No credit may be allowed under this subsection unless the claimant includes with the claimant's return a copy of the claimant's certification under s. 560.701 (2) and a copy of the claimant's notice of eligibility to receive tax benefits under s. 560.703 (3).
2. Partnerships, limited liability companies, and tax-option corporations may not claim the credit under this subsection, but the eligibility for, and the amount of, the credit are based on their authorization to claim tax benefits under s. 560.703. A partnership, limited liability company, or tax-option corporation shall compute the amount of credit that each of its partners, members, or shareholders may claim and shall provide that information to each of them. Partners, members of limited liability companies, and shareholders of tax-option corporations may claim the credit in proportion to their ownership interests.
(d) Administration. 1. Except as provided in subd. 2., sub. (4) (e) and (f), as it applies to the credit under sub. (4), applies to the credit under this subsection.
2. If a claimant's certification is revoked under s. 560.705, or if a claimant becomes ineligible for tax benefits under s. 560.702, the claimant may not claim credits under this subsection for the taxable year that includes the day on which the certification is revoked; the taxable year that includes the day on which the claimant becomes ineligible for tax benefits; or succeeding taxable years and the claimant may not carry over unused credits from previous years to offset the tax imposed under s. 71.23 for the taxable year that includes the day on which certification is revoked; the taxable year that includes the day on which the claimant becomes ineligible for tax benefits; or succeeding taxable years.
3. Subsection (4) (g) and (h), as it applies to the credit under sub. (4), applies to the credit under this subsection.
2,137
Section
137. 71.28 (3p) (a) 1m. of the statutes is created to read:
71.28 (3p) (a) 1m. "Dairy cooperative" means a business organized under ch. 185 or 193 for the purpose of obtaining or processing milk.
2,138
Section
138. 71.28 (3p) (a) 3. (intro.) of the statutes is amended to read:
71.28 (3p) (a) 3. (intro.) "Dairy manufacturing modernization or expansion" means constructing, improving, or acquiring buildings or facilities, or acquiring equipment, for dairy manufacturing, including the following, if used exclusively for dairy manufacturing and if acquired and placed in service in this state during taxable years that begin after December 31, 2006, and before January 1, 2015, or, in the case of dairy cooperatives, if acquired and placed in service in this state during taxable years that begin after December 31, 2008, and before January 1, 2017:
2,139
Section
139. 71.28 (3p) (b) of the statutes is amended to read:
71.28 (3p) (b) Filing claims. Subject to the limitations provided in this subsection and s. 560.207, except as provided in par. (c) 5., for taxable years beginning after December 31, 2006, and before January 1, 2015, a claimant may claim as a credit against the taxes imposed under s. 71.23, up to the amount of the tax, an amount equal to 10 percent of the amount the claimant paid in the taxable year for dairy manufacturing modernization or expansion related to the claimant's dairy manufacturing operation.
2,140
Section
140. 71.28 (3p) (c) 2m. b. of the statutes is amended to read:
71.28 (3p) (c) 2m. b. The maximum amount of the credits that may be claimed by all claimants, other than members of dairy cooperatives, under this subsection and ss. 71.07 (3p) and 71.47 (3p) in fiscal year 2008-09, and in each fiscal year thereafter, is $700,000, as allocated under s. 560.207.
2,141
Section
141. 71.28 (3p) (c) 2m. bm. of the statutes is created to read:
71.28 (3p) (c) 2m. bm. The maximum amount of the credits that may be claimed by members of dairy cooperatives under this subsection and ss. 71.07 (3p) and 71.47 (3p) in fiscal year 2009-10 is $600,000, as allocated under s. 560.207, and the maximum amount of the credits that may be claimed by members of dairy cooperatives under this subsection and ss. 71.07 (3p) and 71.47 (3p) in fiscal year 2010-11, and in each fiscal year thereafter, is $700,000, as allocated under s. 560.207.
2,142
Section
142. 71.28 (3p) (c) 3. of the statutes is amended to read:
71.28 (3p) (c) 3. Partnerships, limited liability companies, and tax-option corporations, and dairy cooperatives may not claim the credit under this subsection, but the eligibility for, and the amount of, the credit are based on their payment of expenses under par. (b), except that the aggregate amount of credits that the entity may compute shall not exceed $200,000 for each of the entity's dairy manufacturing facilities. A partnership, limited liability company, or tax-option corporation, or dairy cooperative shall compute the amount of credit that each of its partners, members, or shareholders may claim and shall provide that information to each of them. Partners, members of limited liability companies, and shareholders of tax-option corporations may claim the credit in proportion to their ownership interest. Members of a dairy cooperative may claim the credit in proportion to the amount of milk that each member delivers to the dairy cooperative, as determined by the dairy cooperative.
2,143
Section
143. 71.28 (3p) (c) 5. of the statutes is created to read:
71.28 (3p) (c) 5. A claimant who is a member of a dairy cooperative may claim the credit, based on amounts described under par. (b) that are paid by the dairy cooperative, for taxable years beginning after December 31, 2008, and before January 1, 2017.
2,144
Section
144. 71.28 (3p) (c) 6. of the statutes is created to read:
71.28 (3p) (c) 6. No credit may be allowed under this subsection unless the claimant submits with the claimant's return a copy of the claimant's credit certification and allocation under s. 560.207.
2,145
Section
145. 71.28 (3p) (d) 2. of the statutes is amended to read:
71.28 (3p) (d) 2. If Except as provided in subd. 3., if the allowable amount of the claim under par. (b) exceeds the tax otherwise due under s. 71.23 or no tax is due under s. 71.23, the amount of the claim not used to offset the tax due shall be certified by the department of revenue to the department of administration for payment by check, share draft, or other draft drawn from the appropriation account under s. 20.835 (2) (bn).
2,146
Section
146. 71.28 (3p) (d) 3. of the statutes is created to read:
71.28 (3p) (d) 3. With regard to claims that are based on amounts described under par. (b) that are paid by a dairy cooperative, if the allowable amount of the claim under par. (b) exceeds the tax otherwise due under s. 71.23, the amount of the claim not used to offset the tax due shall be certified by the department of revenue to the department of administration for payment by check, share draft, or other draft drawn from the appropriation account under s. 20.835 (2) (bp).
2,147
Section
147. 71.28 (3r) of the statutes is created to read:
71.28 (3r) Meat processing facility investment credit. (a) Definitions. In this subsection:
1. "Claimant" means a person who files a claim under this subsection.
2. "Meat processing" means processing livestock into meat products or processing meat products for sale commercially.
3. "Meat processing modernization or expansion" means constructing, improving, or acquiring buildings or facilities, or acquiring equipment, for meat processing, including the following, if used exclusively for meat processing and if acquired and placed in service in this state during taxable years that begin after December 31, 2008, and before January 1, 2017:
a. Building construction, including livestock handling, product intake, storage, and warehouse facilities.
b. Building additions.
c. Upgrades to utilities, including water, electric, heat, refrigeration, freezing, and waste facilities.
d. Livestock intake and storage equipment.
e. Processing and manufacturing equipment, including cutting equipment, mixers, grinders, sausage stuffers, meat smokers, curing equipment, cooking equipment, pipes, motors, pumps, and valves.
f. Packaging and handling equipment, including sealing, bagging, boxing, labeling, conveying, and product movement equipment.
g. Warehouse equipment, including storage and curing racks.
h. Waste treatment and waste management equipment, including tanks, blowers, separators, dryers, digesters, and equipment that uses waste to produce energy, fuel, or industrial products.
i. Computer software and hardware used for managing the claimant's meat processing operation, including software and hardware related to logistics, inventory management, production plant controls, and temperature monitoring controls.
4. "Used exclusively" means used to the exclusion of all other uses except for use not exceeding 5 percent of total use.
(b) Filing claims. Subject to the limitations provided in this subsection and s. 560.208, for taxable years beginning after December 31, 2008, and before January 1, 2017, a claimant may claim as a credit against the taxes imposed under s. 71.23, up to the amount of the tax, an amount equal to 10 percent of the amount the claimant paid in the taxable year for meat processing modernization or expansion related to the claimant's meat processing operation.
(c)
Limitations. 1. No credit may be allowed under this subsection for any amount that the claimant paid for expenses described under par. (b) that the claimant also claimed as a deduction under section
162 of the Internal Revenue Code.
2. The aggregate amount of credits that a claimant may claim under this subsection is $200,000.
3. a. The maximum amount of the credits that may be allocated under this subsection and ss. 71.07 (3r) and 71.47 (3r) in fiscal year 2009-10 is $300,000, as allocated under s. 560.208.
b. The maximum amount of the credits that may be allocated under this subsection and ss. 71.07 (3r) and 71.47 (3r) in fiscal year 2010-11, and in each fiscal year thereafter, is $700,000, as allocated under s. 560.208.
4. Partnerships, limited liability companies, and tax-option corporations may not claim the credit under this subsection, but the eligibility for, and the amount of, the credit are based on their payment of expenses under par. (b), except that the aggregate amount of credits that the entity may compute shall not exceed $200,000. A partnership, limited liability company, or tax-option corporation shall compute the amount of credit that each of its partners, members, or shareholders may claim and shall provide that information to each of them. Partners, members of limited liability companies, and shareholders of tax-option corporations may claim the credit in proportion to their ownership interest.
5. If 2 or more persons own and operate the meat processing operation, each person may claim a credit under par. (b) in proportion to his or her ownership interest, except that the aggregate amount of the credits claimed by all persons who own and operate the meat processing operation shall not exceed $200,000.
6. No credit may be allowed under this subsection unless the claimant submits with the claimant's return a copy of the claimant's credit certification and allocation under s. 560.208.
(d) Administration. 1. Subsection (4) (e), (g), and (h), as it applies to the credit under sub. (4), applies to the credit under this subsection.
