Tax 2.11(2) (2) Credit allowable.

Tax 2.11(2)(a) (a) Under s. 71.28 (3), Stats., a corporation may reduce its income or franchise tax liability for the year by an amount equal to the Wisconsin state and county sales and use taxes it has paid on fuel and electricity consumed in manufacturing personal property within Wisconsin.

Tax 2.11(2)(b) (b) If separate gas or electric meters are not used to accurately measure the fuel and electricity consumed in manufacturing in Wisconsin, a reasonable allocation is necessary.

Tax 2.11(2)(c) (c) The credit is allowable for all Wisconsin and Wisconsin county sales and use taxes paid during the taxable year on fuel or electricity destined for manufacturing purposes, regardless of when the fuel or electricity was or is to be consumed.

Tax 2.11 Note Note: Refer to Streets and Roads Construction Corporation v. Wisconsin Department of Revenue, Wisconsin Tax Appeals Commission, Docket No. I-6239, July 28, 1981, and Fort Howard Paper Company v. Wisconsin Department of Revenue, Wisconsin Tax Appeals Commission, Docket No. I-8266, November 1, 1983.

Tax 2.11(3) (3) Carry forward of unused credit.

Tax 2.11(3)(a) (a) If a corporation is entitled to a sales and use tax credit under s. 71.28 (3), Stats., the credit, to the extent not offset by the tax liability of the same year, may be offset against the tax liability of the subsequent year and each succeeding year up to a total of 15 years until the credit has been completely offset.

Tax 2.11 Note Note: The carry forward of the sales tax credit was increased from 5 to 15 years by 1985 Wis. Act 29, and the 15 year carry forward first applies to credits carried forward from the 1980 taxable year.

Tax 2.11(3)(b) (b) The sales tax credit shall first be offset against the income or franchise tax liability computed for the tax year before an unused credit from a prior year may be applied.

Tax 2.11(4) (4) Credit includable in net income. Under s. 71.26 (2), Stats., the credit computed for sales and use taxes paid on fuel and electricity consumed in manufacturing under s. 71.28 (3), Stats., shall be included in net income for the tax year. Except for tax-option corporations, the entire credit computed for the tax year is includable in net income, even though the credit is not entirely used or no income or franchise tax liability exists. Under s. 71.34 (1k) (e), Stats., tax-option corporations shall only include in net income the amount of credit computed under s. 71.28 (3), Stats., and used to offset the income or franchise tax liability of the current year.

Tax 2.11 Note Note: Section Tax 2.11 interprets ss. 71.26 (2), 71.28 (3) and 71.34 (1k) (e), Stats.

Tax 2.11 History History: Cr. Register, February, 1978, No. 266, eff. 3-1-78; am. (2) (a) r. (1) (d), (2) (b) and (3) (a), renum. (3) (b) and (c) to be (3) (a) and (b), cr. (4), Register, September, 1983, No. 333, eff. 10-1-83; am. (1) (intro.) and (3), renum. (1) (a) to (c) to be (1) (d), (b) and (a) and am., cr. (1) (c), r. and recr. (2) and (4), Register, February, 1990, No. 410, eff. 3-1-90; corrections in (1) (b) and (4) made under s. 13.92 (4) (b) 7., Stats., Register April 2010 No. 652.

Tax 2.12 Tax 2.12 Claims for refund and other amended returns.

Tax 2.12(1) (1) Scope. This section applies to amended Wisconsin franchise or income tax returns, including amended combined returns, amended partnership returns, amended economic development surcharge returns and amended farmland preservation credit and homestead credit claims.

Tax 2.12(2) (2) Definitions. In this section:

Tax 2.12(2)(a) (a) “Claim for refund” means an amended Wisconsin return or credit claim as described in sub. (1), on which a refund is requested.

Tax 2.12(2)(b) (b) “Timely filed,” in the case of an amended return or credit claim, means either of the following:

Tax 2.12(2)(b)1. 1. If the amended return or credit claim is mailed, it is mailed in a properly addressed envelope with postage prepaid and is received by the department, or is received at the destination that the department or the department of administration prescribes, within 5 business days after the last day of the statutory limitation period or extended limitation period.

Tax 2.12(2)(b)2. 2. If the amended return or credit claim is not mailed, it is in the possession of the department, or is received at the destination that the department or the department of administration prescribes, prior to the expiration of the statutory limitation period or extended limitation period.

Tax 2.12(3) (3) General.

Tax 2.12(3)(a) (a) The department shall accept amended returns and credit claims to correct previously filed original, other amended or adjusted Wisconsin franchise or income tax returns, partnership returns, economic development surcharge returns or farmland preservation credit or homestead credit claims.

Tax 2.12(3)(b) (b) A refund of taxes or credits under ch. 71, Stats., or economic development surcharge under s. 77.96 (4), Stats., may be claimed only by filing an amended return or credit claim, on a form and in the manner described in subs. (5) and (6).

Tax 2.12(3)(c) (c) An amended Wisconsin return shall be filed with the department if either an amended federal return is filed or an amended return is filed with another state for which a credit for taxes has been allowed against Wisconsin taxes, and the changes to the amended federal or other state return affect the amount of Wisconsin net franchise or income tax or economic development surcharge payable, a Wisconsin credit or a Wisconsin net operating loss, net business loss or capital loss carried forward. Changes to a net operating or business loss carryforward may not be made unless the change to the incurred loss was computed on a return that was filed within 4 years of the unextended due date for filing the original return for the taxable year in which the loss was incurred. Changes to a net operating or business loss carry-back may not be made unless the change to the loss is claimed within 4 years of the unextended due date for filing the original return for the taxable year to which the loss is carried back.

Tax 2.12(3)(d) (d) An amended Wisconsin return filed to report internal revenue service adjustments as provided in s. Tax 2.105 (4) (a) shall include a copy of the final federal audit report.

Tax 2.12(3)(e) (e) An amended return or credit claim does not begin or extend the statute of limitation periods for assessing additional tax or economic development surcharge or claiming a refund.

Tax 2.12(4) (4) Timely filing.

Tax 2.12(4)(a) (a) Except as provided in par. (b), if an amended return or credit claim shows a refund, it shall be filed within 4 years of the unextended due date of the original return.

Tax 2.12(4)(b) (b) The 4-year filing limitation in par. (a) does not apply in the following situations:

Tax 2.12(4)(b)1. 1. Except as provided in subds. 3. and 4., a claim for refund may not be filed for any year covered by a field audit that resulted in a refund or no change in the tax owed, or in an assessment that has become final under s. 71.88 (1) (a) or (2) (a), 71.89 (2), 73.01 or 73.015, Stats., provided the department advises the taxpayer that the field audit is final unless the taxpayer appeals the result.