HB203 Summary

• Defines "unitary business" as a single economic enterprise made up of separate parts of a single entity or commonly controlled group of entities that are sufficiently interdependent, integrated, and interrelated to provide synergy and mutual benefit.

• Requires taxpayers that are part of a unitary business to use a combined report to determine Alabama taxable income, with all unitary business members doing business in the U.S. or in OECD-designated tax haven jurisdictions included in the combined group.

• Requires the combined report to apportion the combined group's income to Alabama using a formula that measures the taxpayer's Alabama source apportionment data relative to the combined group's apportionment data from all sources.

• Prohibits combined income tax return filing under the unitary business concept and clarifies that existing consolidated return election provisions do not allow or require combined filing.

• Effective for all tax years beginning after December 31, 2012.