Bill > HB2149

This bill, effective January 1, 2027, requires corporations to include the income of all their foreign subsidiaries in their state tax calculations, similar to how the Internal Revenue Service (IRS) already requires for federal taxes, and then uses the state's apportionment formula to determine the portion of these combined profits subject to state tax, with the revenue going to the state's general fund. Corporations will also need to report all their profits, losses, revenues, and inter-company transactions, as well as taxes paid in other states. Additionally, the bill establishes a Corporate Tax Law Task Force within the Department of Taxation to annually review and recommend updates to state corporate tax laws to close loopholes, with the task force submitting reports and proposed legislation to the legislature.