Bill Summary: HB 6628 - An Act Concerning Tax Fairness

• Establishes a combined unitary tax system requiring corporations that are part of a unitary business with common ownership to file combined tax returns effective for income years beginning January 1, 2011.

• Defines "combined group" as entities with at least 50% common voting control engaged in a unitary business, and requires calculation of combined group net income by aggregating income of all taxable and nontaxable members while eliminating intercompany transactions and dividends.

• Allows combined groups to elect worldwide or affiliated group basis reporting, or defaults to water's-edge basis that includes only U.S.-incorporated members or foreign members earning over 20% of income from intangible property or services.

• Provides apportionment rules where each taxable member uses a combined group denominator for property and payroll factors while including its share of nontaxable member receipts in the numerator of the receipts factor.

• Permits operating loss carryovers and tax credit sharing among taxable members of a combined group and grants publicly-traded unitary groups a seven-year deduction for increased net deferred tax liabilities resulting from unitary reporting requirements.