HB455 Summary

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

• Requires Alabama taxpayers that are part of a unitary business to use a combined report to calculate Alabama taxable income by apportioning the combined group's income to Alabama using a formula based on the taxpayer's Alabama source apportionment data relative to the combined group's apportionment data from all sources.

• Mandates the combined report include all members of the unitary business doing business in the United States or commercially domiciled in an OECD-designated tax haven jurisdiction.

• Directs the Commissioner of the Department of Revenue to promulgate regulations providing details of combined report calculations and enforcement procedures.

• Effective for all tax years beginning after December 31, 2014.