2.957 Relocated business credit or deduction.

(1) PURPOSE. The purpose of this section is to prescribe the method by which the percentage of the workforce payroll of a business and the dollar amount of wages paid to such workforce moved to this state during a taxable year shall be determined for purposes of ss. 71.05 (6) (b) 47., 71.28 (9s), and 71.47 (9s), Stats.; provide examples of actions that may indicate a business Published under s. 35.93, Stats. Updated on the first day of each month. Entire code is always current. The Register date on each page is the date the chapter was last published. has relocated to this state from another state or country; and limit the deduction provided for in s. 71.05 (6) (b) 47. am., b., and c., Stats. Note: Sections 71.05 (6) (b) 47., 71.28 (9s), and 71.47 (9s), Stats., were repealed by 2021 a. 127. (2) DEFINITIONS. In this section: (a) XBusinessY means any organization or enterprise operated for profit, including a sole proprietorship, partnership, firm, busi- ness trust, joint venture, syndicate, corporation, limited liability company, or association. (b) XDoing business in this stateY has the meaning given in s. 71.22 (1r), Stats. (c) XEmployeeY has the meaning given in section 3121 (d) of the Internal Revenue Code. (d) XTaxable yearY has the meaning given in ss. 71.01 (12), 71.22 (10), and 71.42 (5), Stats. (e) XWagesY has the meaning given in section 3121 (a) of the Internal Revenue Code. (3) RELOCATION TO THIS STATE. For purposes of ss. 71.05 (6) (b) 47., 71.28 (9s), and 71.47 (9s), Stats., actions that may in- dicate a business has relocated to this state from another state or country include the following: Note: Sections 71.05 (6) (b) 47., 71.28 (9s), and 71.47 (9s), Stats., were repealed by 2021 a. 127. (a) Registering with the department, as provided in s. 73.03 (50), Stats. (b) Registering to do business in Wisconsin with the depart- ment of financial institutions. (4) DOING BUSINESS IN THIS STATE. For purposes of ss. 71.05 (6) (b) 47., 71.28 (9s), and 71.47 (9s), Stats., doing business in this state for any portion of a taxable year means doing business in this state for the entire taxable year, as provided in s. 71.22 (1r), Stats. Note: Sections 71.05 (6) (b) 47., 71.28 (9s), and 71.47 (9s), Stats., were repealed by 2021 a. 127. (5) WORKFORCE PAYROLL. For purposes of ss. 71.05 (6) (b) 47. a., 71.28 (9s) (a) 2., and 71.47 (9s) (a) 2., Stats., the determi- nation as to whether 51% or more of the workforce payroll of a business has moved to this state during a taxable year shall be made using a fraction, the numerator of which is the total amount of wages paid by the business during the taxable year to employ- ees of the business who are residents of this state, and the denom- inator of which is the total amount of wages paid by the business during the taxable year to all employees of the business. Note: Sections 71.05 (6) (b) 47., 71.28 (9s), and 71.47 (9s), Stats., were repealed by 2021 a. 127. Example: During the taxable year in which Business A begins doing business in Wisconsin, Business A pays $6,000,000 of wages to employees of Business A who are residents of Wisconsin and $10,000,000 of total wages to all employees of Busi- ness A. Sixty (60) percent of the workforce payroll of Business A moved to Wiscon- sin during the taxable year (6,000,000/10,000,000). (6) WORKFORCE WAGES. For purposes of ss. 71.05 (6) (b) 47. a., 71.28 (9s) (a) 2., and 71.47 (9s) (a) 2., Stats., the determina- tion as to whether at least $200,000 of wages paid to the work- force of a business has moved to this state during a taxable year shall be made using the total amount of wages paid by the busi- ness during the taxable year to employees of the business who are residents of this state. Note: Sections 71.05 (6) (b) 47., 71.28 (9s), and 71.47 (9s), Stats., were repealed by 2021 a. 127. Example: During the taxable year in which Business B begins doing business in Wisconsin, Business B pays $250,000 of wages to employees of Business B who are residents of Wisconsin. Wages of $250,000 paid to the workforce of Business B moved to Wisconsin during the taxable year. (7) LIMITATIONS ON CREDIT AND DEDUCTION. (a) No modi- fication may be made under s. 71.05 (6) (b) 47. am., b., or c., Stats., if the amount otherwise eligible for the modification is less than zero. Note: Section 71.05 (6) (b) 47., Stats., was repealed by 2021 a. 127. (b) The credit or deduction under this section may not be claimed by a business that relocates to Wisconsin in a taxable year beginning after December 31, 2013. Example: Partner B determines the amount otherwise eligible for the modifica- tion under s. 71.05 (6) (b) 47. b., Stats., is a loss of $5,000. Partner B may not make a modification under s. 71.05 (6) (b) 47. b., Stats. Note: Section 71.05 (6) (b) 47., Stats., was repealed by 2021 a. 127. History: EmR1104: emerg. cr. eff. 4-7-11; CR 11-023: cr. Register November 2011 No. 671, eff. 12-1-11; CR 14-005: am. (7) (title), renum. (7) to (7) (a), cr. (7) (b) Register August 2014 No. 704, eff. 9-1-14.