(1) To perfect a water's-edge election a taxpayer must complete Form WE – ELECT and file the form with the department within the first 90 days of the tax year for which the election is to become effective. If the first tax period for which the election is to become effective is less than 90 days, the taxpayer will have until the end of the tax period to file the election. The election must disclose the taxpayer's identity and a complete listing of all affiliates owned in excess of 50 percent.

(2) The provisions of (1) provide the only way to perfect a water's-edge election. Filing returns and paying tax under the water's-edge method without perfecting the election as provided for in (1) will not be accepted as a valid election.

(3) Each election is binding for a three-year renewable period and may only be revoked upon express written permission of the department.

(4) As stated in (3), the water's-edge election is binding for a three-year renewable period. If a taxpayer wishes to continue to file on a water's-edge basis, a Form WE – ELECT must again be filed with the department within the first 90 days of the tax year for which the election is to become effective.