Wisconsin § 71.30 - General provisions.

§ 71.30. General provisions.

71.30(1) (1) Accounting method. 71.30(1)(a) (a) A corporation shall use a method of accounting authorized under the internal revenue code and shall use the same method used for federal income tax purposes if that method is authorized under the internal revenue code. 71.30(1)(b) (b) A corporation that changes its method of accounting while subject to taxation under this chapter shall make the adjustments required under the internal revenue code, except that in the last year that a corporation is subject to taxation under this chapter it shall take into account all of the remaining adjustments required by this chapter because of a change in method of accounting. 71.30(2) (2) Allocation of gross income, deductions, credits between 2 or more businesses. In any case of 2 or more organizations, trades or businesses (whether or not incorporated, whether or not organized in the United States, whether or not affiliated, and whether or not unitary) owned or controlled directly or indirectly by the same interests, the secretary or his or her delegate may distribute, apportion or allocate gross income, deductions, credits or allowances between or among such organizations, trades or businesses, if he or she 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 ss. 71.05 (6) (a) 24. and (b) 45. , 71.26 (2) (a) 7. and 8. , 71.34 (1k) (j) and (k) , 71.45 (2) (a) 16. and 17. , and 71.80 (23) . 71.30(2m) (2m) Transactions without economic substance. 71.30(2m)(a) (a) If any person, directly or indirectly, engages in a transaction or series of transactions without economic substance to create a loss or to reduce taxable income or to increase credits allowed in determining Wisconsin tax, the department shall determine the amount of a taxpayer’s taxable income or tax so as to reflect what would have been the taxpayer’s taxable income or tax if not for the transaction or transactions without economic substance causing the reduction in taxable income or tax. 71.30(2m)(b) (b) A transaction has economic substance only if the transaction is treated as having economic substance as determined under section 7701 (o) of the Internal Revenue Code, except that the tax effect shall be determined using federal, state, local, or foreign taxes, rather than only the federal income tax effect. 71.30(2m)(c) (c) With respect to a transaction between members of a controlled group, as defined in section 267 (f) (1) of the Internal Revenue Code, the transaction shall be presumed to lack economic substance, and the taxpayer shall bear the burden of establishing by clear and satisfactory evidence that the transaction or the series of transactions between the taxpayer and one or more members of the controlled group has economic substance. 71.30(3) (3) Computations order. Notwithstanding any other provisions in this chapter, corporations computing liability for the tax under s. 71.23 (1) or (2) shall make computations in the following order: 71.30(3)(a) (a) Tax under s. 71.23 (1) or (2) . 71.30(3)(b) (b) Manufacturing sales tax credit under s. 71.28 (3) . Effective date note NOTE: Par. (b) is repealed eff. 1-1-32 by 2025 Wis. Act 118 . 71.30(3)(bb) (bb) Manufacturing investment credit under s. 71.28 (3t) . Effective date note NOTE: Par. (bb) is repealed eff. 1-1-29 by 2025 Wis. Act 118 . 71.30(3)(bm) (bm) Dairy investment credit under s. 71.28 (3n) . Effective date note NOTE: Par. (bm) is repealed eff. 1-1-35 by 2025 Wis. Act 118 . 71.30(3)(bn) (bn) Community rehabilitation program credit under s. 71.28 (5k) . 71.30(3)(c) (c) Research credit under s. 71.28 (4) , except as provided under par. (f) . 71.30(3)(cd) (cd) Postsecondary education credit under s. 71.28 (5r) . Effective date note NOTE: Par. (cd) is repealed eff. 1-1-35 by 2025 Wis. Act 118 . 71.30(3)(ce) (ce) Water consumption credit under s. 71.28 (5rm) . Effective date note NOTE: Par. (ce) is repealed eff. 1-1-35 by 2025 Wis. Act 118 . 71.30(3)(cn) (cn) Biodiesel fuel production credit under s. 71.28 (3h) . Effective date note NOTE: Par. (cn) is repealed eff. 1-1-35 by 2025 Wis. Act 118 . 71.30(3)(cs) (cs) Low-income housing credit under s. 71.28 (8b) . 71.30(3)(ct) (ct) Additional employer-provided child care credit under s. 71.28 (8s) . 71.30 Note NOTE: Par. (ct) was created as par. (cu) by 2025 Wis. Act 183 and renumbered to par. (ct) by the legislative reference bureau under s. 13.92 (1) (bm) 2. 71.30(3)(cu) (cu) Rail infrastructure modernization credit under s. 71.28 (8t) . 71.30(3)(cv) (cv) Rail infrastructure maintenance credit under s. 71.28 (8v) . 71.30(3)(d) (d) Research facilities credit under s. 71.28 (5) . Effective date note NOTE: Par. (d) is repealed eff. 1-1-35 by 2025 Wis. Act 118 . 71.30(3)(dh) (dh) Long-term care insurance assessment credit under s. 71.28 (12) , except as provided under par. (f) . 71.30(3)(dm) (dm) Health Insurance Risk-Sharing Plan assessments credit under s. 71.28 (5g) . Effective date note NOTE: Par. (dm) is repealed eff. 1-1-36 by 2025 Wis. Act 118 . 71.30(3)(dn) (dn) Manufacturing and agriculture credit under s. 71.28 (5n) . 71.30(3)(dp) (dp) Veteran employment credit under s. 71.28 (6n) . Effective date note NOTE: Par. (dp) is repealed eff. 1-1-34 by 2025 Wis. Act 118 . 71.30(3)(ds) (ds) Ethanol and biodiesel fuel pump credit under s. 71.28 (5j) . Effective date note NOTE: Par. (ds) is repealed eff. 1-1-35 by 2025 Wis. Act 118 . 71.30(3)(e) (e) Community development finance credit under s. 71.28 (1) . Effective date note NOTE: Par. (e) is repealed eff. 1-1-35 by 2025 Wis. Act 118 . 71.30(3)(ei) (ei) Development zone capital investment credit under s. 71.28 (1dm) . Effective date note NOTE: Par. (ei) is repealed eff. 1-1-43 by 2025 Wis. Act 118 . 71.30(3)(eL) (eL) Development zones credit under s. 71.28 (1dx) . Effective date note NOTE: Par. (eL) is repealed eff. 1-1-43 by 2025 Wis. Act 118 . 71.30(3)(ema) (ema) Economic development tax credit under s. 71.28 (1dy) . Effective date note NOTE: Par. (ema) is repealed eff. 1-1-37 by 2025 Wis. Act 118 . 71.30(3)(eon) (eon) Technology zones credit under s. 71.28 (3g) . Effective date note NOTE: Par. (eon) is repealed eff. 1-1-41 by 2025 Wis. Act 118 . 71.30(3)(eop) (eop) Early stage seed investment credit under s. 71.28 (5b) . 71.30(3)(ep) (ep) Supplement to federal historic rehabilitation credit under s. 71.28 (6) . 71.30(3)(epa) (epa) Electronic medical records credit under s. 71.28 (5i) . Effective date note NOTE: Par. (epa) is repealed eff. 1-1-35 by 2025 Wis. Act 118 . 71.30(3)(epr) (epr) Film production company investment credit under s. 71.28 (5h) . 71.30(3)(eps) (eps) Film production services credit under s. 71.28 (5f) (b) 1. and 3. 71.30(3)(ey) (ey) Employee college savings account contribution credit under s. 71.28 (10) . 71.30(3)(f) (f) The total of farmland preservation credit under subch. IX , enterprise zone jobs credit under s. 71.28 (3w) , electronics and information technology manufacturing zone credit under s. 71.28 (3wm) , long-term care insurance assessment credit under s. 71.28 (12) (d) 2. , business development credit under s. 71.28 (3y) , research credit under s. 71.28 (4) (k) 1. , film production services credit under s. 71.28 (5f) (b) 2. , estimated tax payments under s.