HF2480 Summary

• Eliminates tax preferences for foreign source income and repeals the subtraction for foreign royalties paid to foreign operating corporations.

• Expands the definition of "domestic corporation" to include certain foreign corporations incorporated or doing business in designated tax havens (34 jurisdictions listed, with exceptions for those with tax information exchange agreements with the U.S.).

• Repeals foreign operating corporation provisions and special apportionment formulas for mail order businesses; modifies the three-factor apportionment formula (sales, property, payroll) to equal weight across all three factors by 2014 and later.

• Modifies Job Opportunity Building Zone (JOBZ) tax benefits by eliminating corporate franchise tax exemptions while maintaining other incentives (income tax, sales tax, property tax exemptions).

• Establishes a school shift repayment mechanism requiring revenue from corporate tax changes to first restore state aid payment percentages to 90 percent, then to reduce property tax recognition shifts.