SB344 Alabama 2013 Session

Summary

Primary Sponsor

George M. “Marc” Keahey

Democrat

Session

Regular Session 2013

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

SB344 defines unitary business for Alabama corporate tax and requires combined reporting for unitary groups, while limiting certain deductions like the domestic production activities deduction and bonus depreciation.

What This Bill Does

If enacted, the bill defines unitary business for Alabama and requires taxpayers that are part of a unitary business to file a combined Alabama tax return. The combined report must include all members of the unitary group doing business in the U.S. or in OECD-designated tax havens, with Alabama taxable income determined by apportioning the group's income to Alabama. It also tightens deductions by capping the domestic production activities deduction at 3% of the lesser of qualified production activities income or taxable income, and capping the bonus depreciation deduction at 50% of the adjusted basis of qualified property. The Revenue Commissioner would issue implementing rules for the combined reporting.

Who It Affects

• Corporations that are part of a unitary business and would be required to file a combined Alabama tax return (including groups with members in the U.S. or OECD-designated tax havens).
• Taxpayers who currently claim the domestic production activities deduction or bonus depreciation under Alabama law, since these deductions would be limited by the bill.

Key Provisions

• Defines UNITARY BUSINESS and interprets it broadly for Alabama income tax purposes.
• Requires unitary taxpayers to use a combined report to determine Alabama taxable income, including all members doing business in the United States or in OECD-designated tax havens; income is apportioned to Alabama using the combined group's data.
• Limits the domestic production activities deduction to 3 percent of the lesser of qualified production activities income or taxable income.
• Limits the bonus depreciation deduction to 50 percent of the adjusted basis of qualified property.
• Authorizes the Revenue Commissioner to promulgate implementing rules for the combined report and related provisions.

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