Alabama Corporate Taxpayers Beware: House Bills Target Unitary Combined Reporting, Section 199 Deduction and Bonus Depreciation

On March 22, 2011, Representative Richard Lindsey (D-Cherokee County) introduced three bills of significant interest to Alabama corporate taxpayers: House Bill 299 would limit the domestic production activities deduction (“DPAD”) under IRC section 199; House Bill 300 would limit the 100% bonus depreciation provisions enacted by Congress last December; while House Bill 301 would authorize the Commissioner of Revenue to force unitary combined reporting (“MUCR”) for certain U.S. and foreign
business entities. All three bills have been assigned to the House Ways and Means-Education Committee. A detailed summary of each bill, along with a link to the full text, is provided below.

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