HB142 Summary

• Amends Alabama corporate income tax law to require related entities involved in a unitary business to file a combined income tax return instead of separate returns.

• Establishes definitions for "combined group," "unitary business," and related concepts, with the combined group including all persons whose income and apportionment factors are required to be reported together.

• Requires taxpayers engaged in unitary business with other corporations to file combined reports that include income and apportionment factors of all unitary business members, except organizations exempt under Section 40-18-32.

• Allows optional water's-edge elections and affiliated group elections to exclude certain foreign entities and members from combined reporting under specified conditions.

• Effective for all taxable years beginning after December 31, 2014, with the Department of Revenue given broad discretion to promulgate implementing rules.