SB197-AA2,1,4 42. Page 10, line 11: after that line insert:
SB197-AA2,1,5 5" Section 22m. 71.25 (9) (a) of the statutes is amended to read:
SB197-AA2,2,36 71.25 (9) (a) The sales factor is a fraction, the numerator of which is the total
7sales of the taxpayer in this state during the tax period, and the denominator of
8which is the total sales of the taxpayer everywhere during the tax period. For sales
9of tangible personal property, the numerator of the sales factor is the sales of the
10taxpayer during the tax period under par. (b) 1. and 2. plus 50% of the sales of the
11taxpayer during the tax period under pars. (b) 2m. and 3. and (c). For purposes of
12determining the numerator of the sales factor for a member of a combined reporting
13group under s. 71.255 (7), "taxpayer" means the member of a combined reporting

1group, as defined in s. 71.255 (1) (c), that transferred title to tangible personal
2property or, for sales other than sales of tangible personal property, that made the
3sale.
".
SB197-AA2,2,4 43. Page 12, line 3: after that line insert:
SB197-AA2,2,5 5" Section 26d. 71.255 of the statutes is created to read:
SB197-AA2,2,6 671.255 Combined reporting. (1) Definitions. In this section:
SB197-AA2,2,107 (a) "Brother-sister parent corporation" means a parent corporation that is a
8member of a commonly controlled group, if any members of the commonly controlled
9group are not connected to the parent corporation by stock ownership or interest
10ownership as described in par. (d).
SB197-AA2,2,1311 (b) "Combined report" means a form prescribed by the department that
12specifies the income of each taxpayer member of a commonly controlled group
13operating as a unitary business.
SB197-AA2,2,1514 (c) "Combined reporting group" means the members of a commonly controlled
15group that are included in a combined report under sub. (2).
SB197-AA2,2,1716 (d) "Commonly controlled group" means any of the following, but does not
17include an insurer that is exempt from taxation under s. 71.45 (1):
SB197-AA2,2,2318 1. A parent corporation and any corporation or chain of corporations that are
19connected to the parent corporation by direct or indirect ownership by the parent
20corporation if the parent corporation owns stock representing more than 50% of the
21voting power of at least one of the connected corporations or if the parent corporation
22or any of the connected corporations owns stock that cumulatively represents more
23than 50% of the voting power of each of the connected corporations.
SB197-AA2,3,3
12. Any 2 or more corporations if a common owner directly or indirectly owns
2stock representing more than 50% of the voting power of the corporations or the
3connected corporations.
SB197-AA2,3,74 3. A partnership or limited liability company if a parent corporation or any
5corporation connected to the parent corporation by common ownership directly or
6indirectly owns more than a 50% interest in the capital and profits of the partnership
7or limited liability company.
SB197-AA2,3,98 4. Any 2 or more corporations if stock representing more than 50% of the voting
9power in each corporation are interests that cannot be separately transferred.
SB197-AA2,3,1410 5. Any 2 or more corporations if stock representing more than 50% of the voting
11power in each corporation is directly owned by, or for the benefit of, family members.
12In this subdivision, "family members" means an individual related by blood,
13marriage, or adoption within the 2nd degree of kinship as computed under s. 852.03
14(2), 1995 stats., or the spouse of such an individual.
SB197-AA2,3,1915 6. A corporation, partnership, or limited liability company if a parent
16corporation or any corporation connected to the parent corporation by common
17ownership does not hold more than a 50% ownership interest in the corporation,
18partnership, or limited liability company but effectively controls the corporation,
19partnership, or limited liability company.
SB197-AA2,3,2020 (e) "Corporation" has the meaning given in s. 71.22 (1) or 71.42 (1).
SB197-AA2,3,2121 (f) "Department" means the department of revenue.
SB197-AA2,3,2422 (g) "Designated agent" means the taxpayer member of a commonly controlled
23group who files a group return on behalf of the taxpayer members of a combined
24reporting group.
SB197-AA2,4,2
1(h) "Group return" means a tax return filed on behalf of the taxpayer members
2of a combined reporting group.
SB197-AA2,4,53 (i) "Intercompany transaction" means a transaction between corporations,
4partnerships, or limited liability companies that become members of the same
5combined reporting group immediately after the transaction.
SB197-AA2,4,76 (im) "Partnership" means any entity considered a partnership under section
77701 of the Internal Revenue Code.
SB197-AA2,4,108 (j) "Separate return" means a return filed by a corporation, regardless of
9whether the corporation is a member of a combined reporting group or is required
10to file a tax return under s. 71.24 or 71.44.
SB197-AA2,4,1311 (k) "Taxpayer member" means a corporation that is subject to tax under s. 71.23
12(1) or (2) or 71.43, that is a member of a combined reporting group, and that files a
13combined report under this section.
SB197-AA2,4,1914 (L) "Top tier corporation" means a member of a commonly controlled group that
15is not connected with a parent corporation by stock ownership or interest ownership
16as described in par. (d), is a parent corporation, or is a brother-sister parent
17corporation, regardless of whether it is doing business in this state or deriving
18income from sources in this state, and regardless of whether its income and
19apportionment factors are excluded from a combined report filed under this section.
SB197-AA2,5,320 (m) "Unitary business" includes the business activities or operations of an
21entity that are of mutual benefit to, integrated with, or dependent upon or that
22contribute to activities of at least one other entity, including transactions that serve
23an operational function, as determined by the department. Two or more businesses
24are presumed to be a unitary business if the businesses have unity of ownership,
25operation, and use as indicated by centralized management or a centralized

1executive force; centralized purchasing, advertising, or accounting; intercorporate
2sales or leases; intercorporate services; intercorporate debts; intercorporate use of
3proprietary materials; interlocking directorates; or interlocking corporate officers.
SB197-AA2,5,12 4(2) Corporations required to use combined reporting. (a) Except as provided
5in par. (b), and subject to sub. (6), a corporation that is subject to the tax imposed
6under s. 71.23 (1) or (2) or 71.43, that is a member of a commonly controlled group,
7and that is engaged, in whole or in part, in a unitary business with one or more
8members of the commonly controlled group shall compute the corporation's income
9attributable to this state by using the income computation under s. 71.26 or 71.45,
10the apportionment formula under s. 71.25 (6) or 71.45, and the tax credits under s.
1171.28 or 71.47 of all of the following that are members of the commonly controlled
12group:
SB197-AA2,5,1713 1. Any corporation organized or incorporated under the laws of the United
14States, any state of the United States, the District of Columbia, the Commonwealth
15of Puerto Rico, any possession of the United States, or any political subdivision of the
16United States, including corporations under sections 931 to 936 of the Internal
17Revenue Code.
SB197-AA2,5,19182. Any domestic international sales corporation under sections 991 to 994 of the
19Internal Revenue Code.
SB197-AA2,5,21203. Any foreign sales corporation under sections 921 to 927 of the Internal
21Revenue Code.
SB197-AA2,5,23224. Any export trade corporation under sections 970 and 971 of the Internal
23Revenue Code.
SB197-AA2,6,324 5. Any corporation regardless of its place of incorporation if the average of its
25property factor under s. 71.25 (7) and its payroll factor under s. 71.25 (8), for property

1and payroll within the United States and computed on an annual basis, is at least
220% during any part of the taxable year that a corporation is a member of the
3commonly controlled group.
SB197-AA2,6,74 6. Any corporation not described in subds. 1. to 5. to the extent of the
5corporation's income within the United States and the corporation's property factor
6under s. 71.25 (7) and payroll factor under s. 71.25 (8) assignable to a location within
7the United States.
SB197-AA2,6,188 (b) A corporation that is subject to the tax imposed under s. 71.23 (1) or (2) or
971.43, that is a member of a commonly controlled group, and that is engaged, in whole
10or in part, in a unitary business with one or more members of the commonly
11controlled group may, subject to sub. (6), compute the corporation's income
12attributable to this state by using the income computation under s. 71.26 or 71.45,
13the apportionment formula under s. 71.25 (6) or 71.45, and the tax credits under s.
1471.28 or 71.47 of all the members of the commonly controlled group, regardless of the
15country in which any member of the commonly controlled group is organized or
16incorporated or conducts business, if all top tier corporations that are members of the
17commonly controlled group elect under sub. (3) to compute the corporation's income
18as provided under this paragraph.
SB197-AA2,7,2 19(3) Computation election. (a) A top tier corporation that is a member of a
20commonly controlled group may elect on the commonly controlled group's behalf, and
21in the manner prescribed by the department, to compute the income of each
22corporation that is a member of the commonly controlled group under sub. (2) (b).
23If more than one member of the commonly controlled group is a top tier corporation,
24an election under this subsection is not effective unless all top tier corporations elect

1on the commonly controlled group's behalf, and in the manner prescribed by the
2department, to compute income under sub. (2) (b).
SB197-AA2,7,103 (b) A top tier corporation shall file an election made under par. (a) with the
4department before the last day of the taxable year. The top tier corporation shall
5designate a taxable year that corresponds with the taxable year of any taxpayer
6member that is subject to the tax imposed under s. 71.23 (1) or (2) or 71.43. If the
7top tier corporation fails to file the election before the last day of the taxable year
8designated under this paragraph, all members of the commonly controlled group to
9which the top tier corporation belongs, including the top tier corporation, shall
10compute income under sub. (2) (a).
SB197-AA2,7,2111 (c) Except as provided under par. (d), the members of the commonly controlled
12group subject to an election under this subsection shall compute their income under
13sub. (2) (b) for 7 taxable years, beginning with the taxable year designated under par.
14(b). Thereafter, the members of the commonly controlled group shall compute their
15income under sub. (2) (b) for periods of 7 taxable years and until any top tier
16corporation that is a member of the commonly controlled group notifies the
17department, in a manner prescribed by the department, before the last day of the last
18taxable year in any period of 7 taxable years that the top tier corporation is
19terminating the election under this subsection. A termination under this paragraph
20takes effect on the first day of the first taxable year beginning after the top tier
21corporation notifies the department under this paragraph.
SB197-AA2,8,222 (d) The department may grant a request by a top tier corporation to terminate
23an election under this subsection before the first period of 7 taxable years under par.
24(c) expires, if the top tier corporation shows good cause for granting the request, as

1determined by the department and consistent with section 1502 of the Internal
2Revenue Code.
SB197-AA2,8,73 (e) Except as provided in par. (f), if an election by a top tier corporation on behalf
4of the members of a commonly controlled group under this subsection is terminated,
5no top tier corporation may make an election on behalf of the members of the same
6commonly controlled group until 7 taxable years have elapsed from the day that the
7termination of the original election took effect.
SB197-AA2,8,128 (f) The department may grant a request by a top tier corporation to make an
9election under this subsection before the period of 7 taxable years under par. (e) have
10elapsed, if the top tier corporation shows good cause for granting the request, as
11determined by the department and consistent with section 1502 of the Internal
12Revenue Code.
SB197-AA2,8,24 13(4) Accounting period. For purposes of this section, the income under ss. 71.26
14and 71.45, the apportionment factors under ss. 71.25 and 71.45 and the tax credits
15under ss. 71.28 and 71.47 of all corporations that are members of a combined
16reporting group shall be determined by using the same accounting period. If the
17combined reporting group has a common parent corporation, the accounting period
18of the common parent corporation shall be used to determine the income, the
19apportionment factors, and the tax credits of all the corporations that are members
20of the combined reporting group. If the combined reporting group has no common
21parent corporation, the income, the apportionment factors, and the tax credits of the
22combined reporting group shall be determined using the accounting period of the
23member of the combined reporting group that has the most significant operations on
24a recurring basis in this state, as determined by the department.
SB197-AA2,9,9
1(5) Filing returns. (a) Corporations with the same accounting period.
2Corporations that must file a combined report under this section and that have the
3same accounting period may file a group return, as prescribed by the department,
4that reports the aggregate state franchise or state income tax liability of all of the
5members of the combined reporting group. Corporations that are required to file a
6combined report under this section may file separate returns reporting the
7respective apportionment of the corporation's state franchise or state income tax
8liability as determined under sub. (2), if each corporation filing a separate return
9pays its own apportionment of its state franchise or state income tax liability.
SB197-AA2,9,2310 (b) Corporations with different accounting periods. Corporations that are
11required to file a combined report and that have different accounting periods shall
12file separate returns and shall use the actual figures from the corporations' financial
13records to determine the proper income and income-related computations to convert
14to a common accounting period. Corporations that are required to file a combined
15report may use a proportional method to convert income to a common accounting
16period if the results of the proportional method do not materially misrepresent the
17income apportioned to this state. The apportionment factors under ss. 71.25 and
1871.45 and the tax credits under ss. 71.28 and 71.47 shall be computed according to
19the same method used to determine the income under ss. 71.26 and 71.45 for the
20common accounting period. If a corporation performs an interim closing of its
21financial records to determine the income attributable to the common accounting
22period, the actual figures from the interim closing shall be used to convert the
23apportionment factors and tax credits to the common accounting period.
SB197-AA2,9,2524 (c) Designated agent. 1. For corporations that are subject to this section and
25that file a group return under par. (a), the parent corporation of the combined

1reporting group is the sole designated agent for each member of the combined
2reporting group including the parent corporation, if the parent corporation is a
3taxpayer member of the combined reporting group and income of the parent
4corporation is included on the group return. If the parent corporation is not a
5taxpayer member or if the parent corporation's income is not included on the group
6return, the taxpayer members may appoint a taxpayer member to be the designated
7agent. If the parent corporation of the combined reporting group is not eligible to be
8the designated agent and no taxpayer member is appointed to be the designated
9agent, the designated agent is the taxpayer member that has the most significant
10operations in this state on a recurring basis, as determined by the department. The
11designated agent, as determined under this subdivision, remains the designated
12agent until the designated agent is no longer a taxpayer member or until the
13taxpayer members appoint a different designated agent. If the designated agent
14changes, the combined reporting group shall notify the department of such a change,
15in a manner prescribed by the department.
SB197-AA2,11,1316 2. The designated agent shall file the group return under par. (a), shall file for
17any extensions under s. 71.24 (7) or 71.44 (3), shall file amended reports and claims
18for refund or credit, and shall send and receive all correspondence with the
19department regarding a group return. Any notice the department sends to the
20designated agent is considered a notice sent to all members of the combined reporting
21group. Any refund with respect to a group return shall be paid to and in the name
22of the designated agent and shall discharge any liability of the state to any member
23of a combined reporting group regarding the refund. The combined reporting group
24filing a group return under par. (a) shall pay all taxes, including estimated taxes, in
25the designated agent's name. The designated agent shall participate on behalf of the

1members of the combined reporting group in any investigation or hearing requested
2by the department regarding a group return and shall produce all information
3requested by the department regarding a group return. The designated agent may
4execute a power of attorney on behalf of the members of the combined reporting
5group. The designated agent shall execute waivers, closing agreements, and other
6documents regarding a group return filed under par. (a) and any waiver, agreement,
7or document executed by the designated agent shall be considered as executed by all
8members of the combined reporting group. If the department acts in good faith with
9a combined reporting group member that represents itself as the designated agent
10for the combined reporting group but that combined reporting group member is not
11the designated agent, any action taken by the department with that combined
12reporting group member has the same effect as if that combined reporting group
13member were the actual designated agent for the combined reporting group.
SB197-AA2,11,1714 (d) Part-year members. If a corporation becomes a member of a combined
15reporting group or ceases to be a member of a combined reporting group after the
16beginning of a common accounting period, the corporation's income shall be
17apportioned to this state as follows:
SB197-AA2,12,218 1. If the corporation is required to file 2 or more short period federal returns
19for the common accounting period, the income for the short period that the
20corporation was a member of a combined reporting group shall be determined as
21provided under sub. (2), the corporation shall join in filing a combined report for that
22short period, and the corporation may join in filing a group return for that short
23period. The income for the remaining short period shall be reported on a separate
24return under s. 71.26 or 71.45. If the corporation becomes a member of another

1combined reporting group in the remaining short period, the corporation's income
2shall be determined for the remaining short period as provided under sub. (2).
SB197-AA2,12,43 2. If the corporation is not required to file federal short period returns, the
4corporation shall file a separate return. Income shall be determined as follows:
SB197-AA2,12,65 a. As provided under sub. (2) for any period that the corporation was a member
6of a combined reporting group.
SB197-AA2,12,87 b. As a separate entity under s. 71.26 or 71.45 for any period that the
8corporation was not a member of a combined reporting group.
SB197-AA2,12,129 (e) Amended group return. The election to file a group return under this section
10applies to an amended group return that includes the same corporations that joined
11in the filing of the original group return. Under this section, an amended group
12return shall be filed as follows:
SB197-AA2,12,2113 1. If an election to file a group return that is in effect for a taxable year is
14revoked for the taxable year because the combined reporting group that filed the
15group return is not subject to sub. (2), as determined by the department, the
16designated agent for the combined reporting group may not file an amended group
17return. The designated agent and each corporation that joined in filing the group
18return shall file a separate amended return. To compute the tax due on a separate
19amended return, a corporation that files a separate amended return shall consider
20all of the payments, credits, or other amounts, including refunds, that the designated
21agent allocated to the corporation.
SB197-AA2,13,222 2. If a change in tax liability under this section is the result of the removal of
23a corporation from a combined reporting group because the corporation was not
24eligible to be a member of the combined reporting group for the taxable year, as

1determined by the department, the designated agent shall file an amended group
2return and the ineligible corporation shall file a separate amended return.
SB197-AA2,13,83 3. If a corporation erroneously fails to join in the filing of a group return, the
4designated agent shall file an amended group return that includes the corporation.
5If a corporation that erroneously fails to join in the filing of a group return has filed
6a separate return, the corporation shall file an amended separate return that shows
7no net income, overpayment, or underpayment, and shows that the corporation has
8joined in the filing of a group return.
SB197-AA2,13,10 9(6) Income computation under combined reporting. For the purposes of sub.
10(2), income attributable to this state shall be determined as follows:
SB197-AA2,13,2511 (a) Determine the net income of each member of a combined reporting group
12under s. 71.26 or 71.45, as appropriate, before deducting net business losses. A
13member of a combined reporting group may determine its net loss or net income
14under a method of accounting or an election authorized under s. 71.26 (3) (y), 71.30
15(1), 71.45 (2) (a) 13., or 71.49 (2), as appropriate, regardless of the accounting method
16used to determine the net loss or net income of other members of the combined
17reporting group. After a member establishes an accounting method, or makes any
18election under this section, the member's net loss or net income shall be consistently
19determined in the combined report of all members of the combined reporting group
20and in the group return filed by the taxpayer members or in the separate return filed
21by the members. If a corporation is engaged in 2 or more trades or businesses that
22are required to use different apportionment formulas under s. 71.25 or 71.45, the net
23income for each trade or business shall be computed separately. A unitary business
24with operations in a foreign country shall compute its net loss or net income as
25provided by rule by the department.
SB197-AA2,14,2
1(b) Adjust each member's income, as determined under par. (a), as provided
2under s. 71.30.
SB197-AA2,14,83 (c) From the amount determined under par. (b), subtract intercompany
4transactions, as provided by rule by the department, such that intercompany
5accounts of assets, liabilities, equities, income, costs, or expenses are excluded from
6the income determination to accurately reflect the income, the apportionment
7factors, and the tax credits in a combined report that is filed under this section. An
8intercompany transaction includes the following:
SB197-AA2,14,119 1. Income or gain from sales, exchanges, contributions, or other transfers of
10tangible or intangible property from a member of the combined reporting group to
11another member of the combined reporting group.
SB197-AA2,14,1312 2. Annual rent paid by a member of the combined reporting group to another
13member of the combined reporting group.
SB197-AA2,14,1514 3. Annual license fees or royalties paid by a member of the combined reporting
15group to another member of the combined reporting group.
SB197-AA2,14,1816 4. Loans, advances, receivables, and similar items that one member of the
17combined reporting group owes to another member of the combined reporting group,
18including interest income and interest expense related to these items.
SB197-AA2,14,2019 5. Stock or other equity of a member of the combined reporting group that is
20owned or controlled by another member of the combined reporting group.
SB197-AA2,14,2321 6. Except as provided by rule by the department, dividends paid out of earnings
22or profits and paid by a member of the combined reporting group to another member
23of the combined reporting group.
SB197-AA2,14,2524 7. Management or service fees paid by a member of the combined reporting
25group to another member of the combined reporting group.
SB197-AA2,15,2
18. Income or expenses allocated or charged by a member of the combined
2reporting group to another member of the combined reporting group.
SB197-AA2,15,63 (d) From the amount determined under par. (c) for each member of a combined
4reporting group, subtract nonapportionable income, net of related expenses, and add
5nonapportionable losses, net of related expenses, to determine each member's
6apportionable net income or apportionable net loss.
SB197-AA2,15,97 (e) Calculate the apportionment factors under sub. (7) and multiply each
8member's apportionable net income or apportionable net loss, as determined under
9par. (d), by the member's apportionment factor as determined under sub. (7).
SB197-AA2,15,1110 (f) For each corporation, combine the amounts determined under par. (e) for
11each trade or business.
SB197-AA2,15,1412 (g) To the amounts determined under par. (f), add each member's
13nonapportionable income attributable to this state and subtract each member's
14nonapportionable losses attributable to this state.
SB197-AA2,15,1615 (h) If the combined reporting group is not filing a group return, combine the
16amounts determined under par. (g) for all members of the combined reporting group.
SB197-AA2,15,1917 (i) If the combined reporting group is filing a group return, combine the
18amounts determined under par. (g) for all members of the combined reporting group
19that join in filing the group return.
SB197-AA2,15,2120 (j) From the amount determined under par. (h) or (i), as appropriate, subtract
21the combined reporting group's net operating loss as determined under sub. (8).
SB197-AA2,15,23 22(7) Apportionment factor computation under combined reporting. For the
23purposes of sub. (2), this state's apportionment factors are determined as follows:
SB197-AA2,16,3
1(a) 1. Determine the numerator and the denominator of the apportionment
2factors as determined under s. 71.25 or 71.45, as appropriate, for each member of the
3combined reporting group, except as provided in subd. 2.
SB197-AA2,16,134 2. If a member of a combined reporting group is not subject to the tax imposed
5under s. 71.23 or 71.43 because it does not have sufficient connection to this state as
6a separate entity for income or franchise tax purposes, as determined by the
7department, the numerator of the member's sales factor under s. 71.25 (9) or
8apportionment factor under s. 71.45 (3) is zero. If a member of a combined reporting
9group is a corporation engaged in business wholly within this state, as provided
10under s. 71.25 (4), the numerator and denominator of the member's apportionment
11factors is the same. If a member of a combined reporting group is not subject to an
12income or franchise tax as a separate entity in the state to which a sale is attributed,
13the sale is attributed to this state.
SB197-AA2,16,1514 (b) Subtract intercompany transactions under sub. (6) (c) from both the
15numerators and the denominators as determined under par. (a).
SB197-AA2,16,1816 (c) Add the denominators of the apportionment factors for each member of the
17combined reporting group, as determined under par. (b), to arrive at the combined
18denominator.
SB197-AA2,16,2119 (d) Compute each corporation's apportionment factors by dividing the
20corporation's numerator as determined under par. (b) by the combined denominator
21as determined under par. (c).
SB197-AA2,17,5 22(8) Net business loss carry-over. (a) For taxable years beginning after
23December 31, 2002, any net business loss of a corporation that is a member of a
24combined reporting group as determined under sub. (6) for the taxable year that is
25not offset against the net income of the other members of the combined reporting

1group in the same taxable year may be carried forward as provided under s. 71.26
2(4), except that any net business loss carried forward to a subsequent taxable year
3may be offset against either the net income of the corporation that incurred the net
4business loss or the net income of the combined reporting group of which the
5corporation is a member, in the manner prescribed by rule by the department.
SB197-AA2,17,96 (b) A corporation that is a member of a combined reporting group may not carry
7forward a net business loss from a taxable year beginning before January 1, 2003,
8if the corporation was not subject to the tax imposed under s. 71.23 or 71.43 for the
9same taxable year.
SB197-AA2,17,2010 (c) A corporation that is a member of a combined reporting group and that
11incurred a Wisconsin net business loss in a taxable year beginning before January
121, 2003, that has not been offset against the corporation's net income in subsequent
13taxable years, may offset the remaining net business loss against the corporation's
14net income as determined under sub. (6). If the corporation joins in filing a group
15return under sub. (5) and the corporation's remaining net business loss exceeds the
16corporation's net income as determined under sub. (6) for the first taxable year
17beginning after December 31, 2002, that the corporation is subject to this section, the
18corporation may annually offset up to 20% of the remaining net business loss against
19the net income of the other members of the combined reporting group that join in
20filing a group return under sub. (5).
SB197-AA2,18,5 21(9) Net income or loss for corporations with different accounting periods.
22If a taxpayer member has a different accounting period than the common accounting
23period of the combined reporting group, the combined reporting group shall assign
24the combined report income or loss for the combined reporting group, as determined
25under sub. (6), proportionally to the number of months in the taxpayer member's

1taxable year that are wholly or partly within the combined reporting group's common
2accounting period. The total amount of income or loss assigned to a taxpayer member
3under this subsection for the portions of the common accounting period that are
4included in the taxpayer member's taxable period shall be aggregated or netted to
5determine the taxpayer member's apportionable income.
SB197-AA2,18,7 6(10) Net tax liability. (a) A corporation that files a separate return under this
7section shall determine its net tax liability as follows:
SB197-AA2,18,98 1. Multiply the amount determined under sub. (6) (i) for the corporation by the
9tax rate under s. 71.27 or 71.46, as appropriate.
SB197-AA2,18,1410 2. From the amount determined under subd. 1., subtract the corporation's tax
11credits under s. 71.28 or 71.47 based on the corporation's expenses. The corporation
12may not offset any of its tax credits, or tax credit carry forwards, against the tax
13liability of any other member of the combined reporting group to which the
14corporation belongs.
SB197-AA2,18,1615 (b) A combined reporting group that files a group return under this section shall
16determine its net tax liability as follows:
SB197-AA2,18,1817 1. Multiply the amount determined under sub. (6) (i) for the combined reporting
18group by the tax rate under s. 71.27 or 71.46, as appropriate.
SB197-AA2,18,2019 2. From the amount determined under subd. 1., subtract the tax credits under
20ss. 71.28 and 71.47 for all taxpayer members of the combined reporting group.
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