Bill > SB1

This bill mandates that unitary corporations, which are corporations that are part of a larger group with integrated operations, must file a combined tax return, reporting their collective net income as if they were a single entity, rather than filing individual returns. This change removes previous options for these corporations to elect out of combined filing or to file consolidated returns under a different section of law, unless the secretary of taxation grants specific permission to file individually. The bill also clarifies that transactions between these unitary corporations can be adjusted to align with federal consolidated tax return rules, and once a combined return is filed, it must continue to be filed in subsequent years as long as the corporations remain unitary, unless the secretary allows otherwise. These provisions apply to tax years beginning on or after January 1, 2017.