HB 121-FN is a bill that repeals the water's edge combined group provisions of the business profits tax and replaces it with worldwide combined reporting. The bill aims to treat all corporations conducting a unitary business fairly and equally, regardless of size or location. The change to worldwide combined reporting may have an indeterminable fiscal impact on General Fund and Education Trust Fund revenue, as the Department of Revenue Administration does not have access to the financial information of unitary business groups. The Department may also face practical constraints, such as accessing the books and records of foreign parent companies and converting foreign currency-denominated assets. The provisions of the bill will apply for taxable periods beginning after December 31, 2023, and the bill will take effect on July 1, 2023.

Statutes affected:
Introduced: 77-A:1