SB333 Alabama 2012 Session

Summary

Primary Sponsor

Tammy Irons

Democrat

Co-Sponsors

Vivian Davis FiguresGeorge M. “Marc” KeaheyBobby D. SingletonLinda Coleman-MadisonRoger Bedford, Jr.Quinton RossHank SandersRodger SmithermanWilliam “Bill” M. BeasleyJerry L. Fielding

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.

Summary

SB333 would define unitary business for Alabama and require unitary taxpayers to file a combined report, while limiting certain federal deductions at the Alabama level.

What This Bill Does

It defines unitary business for Alabama and requires taxpayers in a unitary group to use a combined report to determine Alabama taxable income. The combined report would include all unitary members doing business in the U.S. or in OECD-designated tax havens, with income apportioned to Alabama using a group-wide formula. It also caps the domestic production activities deduction at 3% of qualifying income or taxable income and caps the bonus depreciation deduction at 50% of the adjusted basis. The Revenue Commissioner would be authorized to require additional information in an alternative reporting format and to issue related rules.

Who It Affects

• Corporations that are part of a unitary business with Alabama operations — would be required to file a combined report to determine Alabama taxable income and apportion income accordingly.
• Taxpayers claiming the domestic production activities deduction or the bonus depreciation deduction — would see these Alabama deductions limited (3% cap for DPA; 50% cap for bonus depreciation).

Key Provisions

• Defines UNITARY BUSINESS for Alabama income tax purposes with broad interpretation.
• Requires unitary taxpayers to use a combined report to determine Alabama taxable income.
• Includes all unitary members doing business in the United States or in OECD-designated tax havens in the combined report, using a group-wide apportionment formula to allocate income to Alabama.
• Limits the domestic production activities deduction to 3 percent of qualifying income or taxable income, whichever is less.
• Limits the bonus depreciation deduction to 50 percent of the adjusted basis of qualified property.
• Gives the Revenue Commissioner authority to require additional information in an alternative reporting format and to promulgate necessary rules.

AI-generated summary using openai/gpt-5-nano on Feb 25, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Taxation