HB3477 Summary

• Requires all corporations that are members of a unitary business to file a combined return as a combined group for taxable years beginning on or after January 1, 2022.

• Members of the combined group are jointly and severally liable for the combined group's tax liability.

• Establishes a water's-edge election allowing unitary groups to exclude certain foreign-source income and members based on specific criteria, including members with 80% or more business activity outside the United States.

• Modifies the definition of "unitary business" and expands the definition of "United States" for purposes of unitary business determination to include U.S. territories and possessions beginning in 2022.

• Defines "tax haven" as a jurisdiction with little or no effective tax, poor information exchange, lack of transparency, or favorable tax avoidance regimes.