HB199 Alabama 2012 Session

Summary

Primary Sponsor

Richard Lindsey

Democrat

Session

Regular Session 2012

Title

Corporate income tax, taxpayer who is part of unitary business, taxable income to include any amounts in excess of federal domestic production activities deduction, Revenue Commissioner authorized to require additional information in alternative reporting format, Secs. 40-2A-17, 40-18-1, 40-18-34 am'd.

Description

Under existing law, there is no definition of the term unitary business for taxable purpose.

Existing law levies an income tax on corporations. Alabama corporate income tax law is linked to federal corporate income tax law, which allows a domestic production activities deduction that is equal to a percentage of income earned from domestic production or taxable income, whichever is less.

Also under existing law, Alabama corporate income tax law is linked to the federal corporate income tax law, which allows a temporary increase in the bonus depreciation deduction from 50 percent to 100 percent of the adjusted basis of qualified property pursuant to the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (Public Law 111-312).

This bill defines unitary business and requires taxpayers who are part of a unitary business to use a combined report to determine their Alabama taxable income.

This bill would limit the Alabama deduction to three percent of qualifying income.

This bill would limit the Alabama deduction to 50 percent of the adjusted basis of qualified property.

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Subjects

Taxation