Rep. Norm Thurston — Voting Record

Bill

Number

H.B. 39 First Substitute (2021GS)

Sponsor

Rep. Sagers, D.

Final action

Governor Signed 3/22/2021

Outcome

Became law — signed by Gov. Spencer J. Cox

Summary

What it does

• This bill:
• provides that a corporate taxpayer's unadjusted income is determined before any deductions related to:
• foreign-derived intangible income and global intangible low-taxed income; and
• deferred foreign income; and
• makes technical and conforming changes.

Every vote on this bill

Bill text

CORPORATE TAX UNADJUSTED INCOME AMENDMENTS
GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Douglas V. Sagers
Senate Sponsor: 
Wayne A. Harper
LONG TITLE
General Description:
This bill modifies defined terms related to corporate income taxes.
Highlighted Provisions:
This bill:
▸ provides that a corporate taxpayer's unadjusted income is determined before any
deductions related to:
• foreign-derived intangible income and global intangible low-taxed income; and
• deferred foreign income; and
▸ makes technical and conforming changes.
Money Appropriated in this Bill:
None
Other Special Clauses:
This bill provides retrospective operation.
Utah Code Sections Affected:
AMENDS:
59-7-101
, as last amended by Laws of Utah 2020, Sixth Special Session, Chapter 15
59-7-106
, as last amended by Laws of Utah 2020, Sixth Special Session, Chapter 15
59-7-402
, as last amended by Laws of Utah 2020, Sixth Special Session, Chapter 15
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 
59-7-101
 is amended to read:
59-7-101.
Definitions.
As used in this chapter:
(1) "Adjusted income" means unadjusted income as modified by Sections 
59-7-105
and 
59-7-106
.
(2) (a) "Affiliated group" means one or more chains of corporations that are connected
through stock ownership with a common parent corporation that meet the following
requirements:
(i) at least 80% of the stock of each of the corporations in the group, excluding the
common parent corporation, is owned by one or more of the other corporations in the group;
and
(ii) the common parent directly owns at least 80% of the stock of at least one of the
corporations in the group.
(b) "Affiliated group" does not include corporations that are qualified to do business
but are not otherwise doing business in this state.
(c) For purposes of this Subsection (2), "stock" does not include nonvoting stock which
is limited and preferred as to dividends.
(3) "Apportionable income" means adjusted income less nonbusiness income net of
related expenses, to the extent included in adjusted income.
(4) "Apportioned income" means apportionable income multiplied by the
apportionment fraction as determined in Section 
59-7-311
.
(5) "Business income" means the same as that term is defined in Section 
59-7-302
.
(6) "Captive insurance company" means the same as that term is defined in Section
31A-1-301
.
(7) (a) "Captive real estate investment trust" means a real estate investment trust if:
(i) the shares or beneficial interests of the real estate investment trust are not regularly
traded on an established securities market; and
(ii) more than 50% of the voting power or value of the shares or beneficial interests of
the real estate investment trust are directly, indirectly, or constructively:
(A) owned by a controlling entity of the real estate investment trust; or
(B) controlled by a controlling entity of the real estate investment trust.
(b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
commission may make rules defining "established securities market."
(8) (a) "Common ownership" means the direct or indirect control or ownership of more
than 50% of the outstanding voting stock of:
(i) a parent-subsidiary controlled group as defined in Section 1563, Internal Revenue
Code, except that 50% shall be substituted for 80%;
(ii) a brother-sister controlled group as defined in Section 1563, Internal Revenue
Code; or
(iii) three or more corporations each of which is a member of a group of corporations
described in Subsection (2)(a)(i) or (ii), and one of which is:
(A) a common parent corporation included in a group of corporations described in
Subsection (2)(a)(i); and
(B) included in a group of corporations described in Subsection (2)(a)(ii).
(b) Ownership of outstanding voting stock shall be determined by Section 1563,
Internal Revenue Code.
(9) (a) "Controlling entity of a captive real estate investment trust" means an entity
that:
(i) is treated as an association taxable as a corporation under the Internal Revenue
Code;
(ii) is not exempt from federal income taxation under Section 501(a), Internal Revenue
Code; and
(iii) directly, indirectly, or constructively holds more than 50% of:
(A) the voting power of a captive real estate investment trust; or
(B) the value of the shares or beneficial interests of a captive real estate investment
trust.
(b) "Controlling entity of a captive real estate investment trust" does not include:
(i) a real estate investment trust, except for a captive real estate investment trust;
(ii) a qualified real estate investment subsidiary described in Section 856(i), Internal
Revenue Code, except for a qualified real estate investment trust subsidiary of a captive real
estate investment trust; or
(iii) a foreign real estate investment trust.
(c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
commission may make rules defining "established securities market."
(10) "Corporate return" or "return" includes a combined report.
(11) "Corporation" includes:
(a) entities defined as corporations under Sections 7701(a) and 7704, Internal Revenue
Code; and
(b) other organizations that are taxed as corporations for federal income tax purposes
under the Internal Revenue Code.
(12) "COVID-19" means:
(a) the severe acute respiratory syndrome coronavirus 2; or
(b) the disease caused by severe acute respiratory syndrome coronavirus 2.
(13) "Dividend" means any distribution, including money or other type of property,
made by a corporation to its shareholders out of its earnings or profits accumulated after
December 31, 1930.
(14) (a) "Doing business" includes any transaction in the course of business by a
domestic corporation or by a foreign corporation qualified to do or doing business in this state.
(b) Except as provided in Subsection (14)(c) or Subsection 
59-7-102
(3), "doing
business" includes:
(i) the right to do business through incorporation or qualification;
(ii) owning, renting, or leasing of real or personal property within this state;
(iii) the participation in joint ventures, working and operating agreements, the
performance of which takes place in this state;
(iv) selling or performing a service in this state; and
(v) earning income from the use of intangible property in this state.
(c) "Doing business" does not include the business activity of a corporation if the
corporation's only business activity within the state is the solicitation of orders for sales of
tangible personal property that are protected under 15 U.S.C. Secs. 381 through 384.
(15) "Domestic corporation" means a corporation that is incorporated or organized
under the laws of this state.
(16) "Exercising a corporate franchise" does not include the business activity of a
corporation if the corporation's only business activity within the state is the solicitation of
orders for sales of tangible personal property that are protected under 15 U.S.C. Secs. 381
through 384.
(17) (a) "Farmers' cooperative" means an association, corporation, or other
organization that is:
(i) (A) an association, corporation, or other organization of farmers or fruit growers; or
(B) an association, corporation, or other organization that is similar to an association,
corporation, or organization described in Subsection (17)(a)(i)(A); and
(ii) organized and operated on a cooperative basis to:
(A) (I) market the products of members of the cooperative or the products of other
producers; and
(II) return to the members of the cooperative or other producers the proceeds of sales
less necessary marketing expenses on the basis of the quantity of the products of a member or
producer or the value of the products of a member or producer; or
(B) (I) purchase supplies and equipment for the use of members of the cooperative or
other persons; and
(II) turn over the supplies and equipment described in Subsection (17)(a)(ii)(B)(I) at
actual costs plus necessary expenses to the members of the cooperative or other persons.
(b) (i) Subject to Subsection (17)(b)(ii), for purposes of this Subsection (17), the
commission by rule, made in accordance with Title 63G, Chapter 3, Utah Administrative
Rulemaking Act, shall define:
(A) the terms "member" and "producer"; and
(B) what constitutes an association, corporation, or other organization that is similar to
an association, corporation, or organization described in Subsection (17)(a)(i)(A).
(ii) The rules made under this Subsection (17)(b) shall be consistent with the filing
requirements under federal law for a farmers' cooperative.
(18) "Foreign corporation" means a corporation that is not incorporated or organized
under the laws of this state.
(19) (a) "Foreign operating company" means a corporation that:
(i) is incorporated in the United States;
(ii) conducts at least 80% of the corporation's business activity, as determined under
Section 
59-7-401
, outside the United States; and
(iii) as calculated in accordance with Part 3, Allocation and Apportionment of Income -
Utah UDITPA Provisions, has:
(A) at least $1,000,000 of payroll located outside the United States; and
(B) at least $2,000,000 of property located outside the United States.
(b) "Foreign operating company" does not include a corporation that qualifies for the
Puerto Rico and possession tax credit as provided in Section 936, Internal Revenue Code.
(20) (a) "Foreign real estate investment trust" means:
(i) a business entity organized outside the laws of the United States if:
(A) at least 75% of the business entity's total asset value at the close of the business
entity's taxable year is represented by:
(I) real estate assets, as defined in Section 856(c)(5)(B), Internal Revenue Code;
(II) cash or cash equivalents; or
(III) one or more securities issued or guaranteed by the United States;
(B) the business entity is:
(I) not subject to income taxation:
(Aa) on amounts distributed to the business entity's beneficial owners; and
(Bb) in the jurisdiction in which the business entity is organized; or
(II) exempt from income taxation on an entity level in the jurisdiction in which the
business entity is organized;
(C) the business entity distributes at least 85% of the business entity's taxable income,
as computed in the jurisdiction in which the business entity is organized, to the holders of the
business entity's:
(I) shares or beneficial interests; and
(II) on an annual basis;
(D) (I) not more than 10% of the following is held directly, indirectly, or constructively
by a single person:
(Aa) the voting power of the business entity; or
(Bb) the value of the shares or beneficial interests of the business entity; or
(II) the shares of the business entity are regularly traded on an established securities
market; and
(E) the business entity is organized in a country that has a tax treaty with the United
States; or
(ii) a listed Australian property trust.
(b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
commission may make rules defining:
(i) "cash or cash equivalents";
(ii) "established securities market"; or
(iii) "listed Australian property trust."
(21) "Income" includes losses.
(22) "Internal Revenue Code" means Title 26 of the United States Code as effective
during the year in which Utah taxable income is determined.
(23) "Nonbusiness income" means the same as that term is defined in Section
59-7-302
.
(24) "Real estate investment trust" means the same as that term is defined in Section
856, Internal Revenue Code.
(25) "Related expenses" means:
(a) expenses directly attributable to nonbusiness income; and
(b) the portion of interest or other expense indirectly attributable to both nonbusiness
and business income that bears the same ratio to the aggregate amount of such interest or other
expense, determined without regard to this Subsection (25), as the average amount of the asset
producing the nonbusiness income bears to the average amount of all assets of the taxpayer
within the taxable year.
(26) "S corporation" means an S corporation as defined in Section 1361, Internal
Revenue Code.
(27) "Safe harbor lease" means a lease that qualified as a safe harbor lease under
Section 168, Internal Revenue Code.
(28) "Special deduction" includes a deduction under:
(a) Section 250, Internal Revenue Code; or
(b) Section 965(c), Internal Revenue Code.
[
(28)
] 
(29)
 "State of the United States" includes any of the 50 states or the District of
Columbia.
[
(29)
] 
(30)
 (a) "Taxable year" means the calendar year or the fiscal year ending during
such calendar year upon the basis of which the adjusted income is computed.
(b) In the case of a return made for a fractional part of a year under this chapter or
under rules prescribed by the commission, "taxable year" includes the period for which such
return is made.
[
(30)
] 
(31)
 "Taxpayer" means any corporation subject to the tax imposed by this
chapter.
[
(31)
] 
(32)
 "Threshold level of business activity" means business activity in the United
States equal to or greater than 20% of the corporation's total business activity as determined
under Section 
59-7-401
.
[
(32)
] 
(33)
 (a) "Unadjusted income" means federal taxable income as determined on a
separate return basis before intercompany eliminations as determined by the Internal Revenue
Code, before the net operating loss deduction and special deductions [
for dividends received
].
(b) "Unadjusted income" includes deferred foreign income described in Section 965(a),
Internal Revenue Code.
(c) "Unadjusted income" does not include income received from:
(i) a loan forgiven in accordance with 15 U.S.C. Sec. 636(a)(36), to the extent that a
deduction for the expenditures paid with the loan is disallowed; or
(ii) a similar paycheck protection loan that is:
(A) authorized by the federal government;
(B) provided in response to COVID-19;
(C) forgiven if the borrower meets the expenditure requirements; and
(D) exempt from federal income tax, to the extent that a deduction for the expenditures
paid with the loan is disallowed.
[
(33)
] 
(34)
 (a) "Unitary group" means a group of corporations that:
(i) are related through common ownership; and
(ii) by a preponderance of the evidence as determined by a court of competent
jurisdiction or the commission, are economically interdependent with one another as
demonstrated by the following factors:
(A) centralized management;
(B) functional integration; and
(C) economies of scale.
(b) "Unitary group" includes a captive real estate investment trust.
(c) "Unitary group" does not include an S corporation.
[
(34)
] 
(35)
 "United States" includes the 50 states and the District of Columbia.
[
(35)
] 
(36)
 "Utah net loss" means the current year Utah taxable income before Utah net
loss deduction, if determined to be less than zero.
[
(36)
] 
(37)
 "Utah net loss deduction" means the amount of Utah net losses from other
taxable years that a taxpayer may carry forward to the current taxable year in accordance with
Section 
59-7-110
.
[
(37)
] 
(38)
 (a) "Utah taxable income" means Utah taxable income before net loss
deduction less Utah net loss deduction.
(b) "Utah taxable income" includes income from tangible or intangible property located
or having situs in this state, regardless of whether carried on in intrastate, interstate, or foreign
commerce.
[
(38)
] 
(39)
 "Utah taxable income before net loss deduction" means apportioned income
plus nonbusiness income allocable to Utah net of related expenses.
[
(39)
] 
(40)
 (a) "Water's edge combined report" means a report combining the income
and activities of:
(i) all members of a unitary group that are:
(A) corporations organized or incorporated in the United States, including those
corporations qualifying for the Puerto Rico and Possession Tax Credit as provided in Section
936, Internal Revenue Code, in accordance with Subsection [
(39)
] 
(40)
(b); and
(B) corporations organized or incorporated outside of the United States meeting the
threshold level of business activity; and
(ii) an affiliated group electing to file a water's edge combined report under Subsection
59-7-402
(2).
(b) There is a rebuttable presumption that a corporation which qualifies for the Puerto
Rico and possession tax credit provided in Section 936, Internal Revenue Code, is part of a
unitary group.
[
(40)
] 
(41)
 "Worldwide combined report" means the combination of the income and
activities of all members of a unitary group irrespective of the country in which the
corporations are incorporated or conduct business activity.
Section 2. Section 
59-7-106
 is amended to read:
59-7-106.
Subtractions from unadjusted income.
(1) In computing adjusted income, the following amounts shall be subtracted from
unadjusted income:
(a) the foreign dividend gross-up included in gross income for federal income tax
purposes under Section 78, Internal Revenue Code;
(b) subject to Subsection (2), the net capital loss, as defined for federal purposes, if the
taxpayer elects to deduct the net capital loss on the return filed under this chapter for the
taxable year for which the net capital loss is incurred;
(c) the decrease in salary expense deduction for federal income tax purposes due to
claiming the federal work opportunity credit under Section 51, Internal Revenue Code;
(d) the decrease in qualified research and basic research expense deduction for federal
income tax purposes due to claiming the federal credit for increasing research activities under
Section 41, Internal Revenue Code;
(e) the decrease in qualified clinical testing expense deduction for federal income tax
purposes due to claiming the federal credit for clinical testing expenses for certain drugs for
rare diseases or conditions under Section 45C, Internal Revenue Code;
(f) any decrease in any expense deduction for federal income tax purposes due to
claiming any other federal credit;
(g) the safe harbor lease adjustment required under Subsections 
59-7-111
(1)(b) and
(2)(b);
(h) any income on the federal corporation income tax return that has been previously
taxed by Utah;
(i) an amount included in federal taxable income that is due to a refund of a tax,
including a franchise tax, an income tax, a corporate stock and business tax, or an occupation
tax:
(i) if that tax is imposed for the privilege of:
(A) doing business; or
(B) exercising a corporate franchise;
(ii) if that tax is paid by the corporation to:
(A) Utah;
(B) another state of the United States;
(C) a foreign country;
(D) a United States possession; or
(E) the Commonwealth of Puerto Rico; and
(iii) to the extent that tax was added to unadjusted income under Section 
59-7-105
;
(j) a charitable contribution, to the extent the charitable contribution is allowed as a
subtraction under Section 
59-7-109
;
(k) subject to Subsection (3), 50% of a dividend considered to be received or received
from a subsidiary that:
(i) is a member of the unitary group;
(ii) is organized or incorporated outside of the United States; and
(iii) is not included in a combined report under Section 
59-7-402
 or 
59-7-403
;
(l) subject to Subsection (4) and Section 
59-7-401
, 50% of the adjusted income of a
foreign operating company;
(m) the amount of gain or loss that is included in unadjusted income but not recognized
for federal purposes on stock sold or exchanged by a member of a selling consolidated group as
defined in Section 338, Internal Revenue Code, if an election has been made in accordance
with Section 338(h)(10), Internal Revenue Code;
(n) the amount of gain or loss that is included in unadjusted income but not recognized
for federal purposes on stock sold, exchanged, or distributed by a corporation in accordance
with Section 336(e), Internal Revenue Code, if an election under Section 336(e), Internal
Revenue Code, has been made for federal purposes;
(o) subject to Subsection (5), an adjustment to the following due to a difference
between basis for federal purposes and basis as computed under Section 
59-7-107
:
(i) an amortization expense;
(ii) a depreciation expense;
(iii) a gain;
(iv) a loss; or
(v) an item similar to Subsections (1)(o)(i) through (iv);
(p) an interest expense that is not deducted on a federal corporation income tax return
under Section 265(b) or 291(e), Internal Revenue Code;
(q) 100% of dividends received from a subsidiary that is an insurance company if that
subsidiary that is an insurance company is:
(i) exempt from this chapter under Subsection 
59-7-102
(1)(c); and
(ii) under common ownership;
(r) subject to Subsection 
59-7-105
(10), for a corporation that is an account owner as
defined in Section 
53B-8a-102
, the amount of a qualified investment as defined in Section
53B-8a-102.5
:
(i) that the corporation or a person other than the corporation makes into an account
owned by the corporation during the taxable year;
(ii) to the extent that neither the corporation nor the person other than the corporation
described in Subsection (1)(r)(i) deducts the qualified investment on a federal income tax
return; and
(iii) to the extent the qualified investment does not exceed the maximum amount of the
qualified investment that may be subtracted from unadjusted income for a taxable year in
accordance with Subsection 
53B-8a-106
(1);
(s) for a corporation that makes a donation, as that term is defined in Section
53B-8a-201
, to the Student Prosperity Savings Program created in Section 
53B-8a-202
, the
amount of the donation to the extent that the corporation did not deduct the donation on a
federal income tax return;
(t) for purposes of income included in a combined report under Part 4, Combined
Reporting, the entire amount of the dividends a member of a unitary group receives or is
considered to receive from a captive real estate investment trust;
(u) the increase in income for federal income tax purposes due to claiming a:
(i) qualified tax credit bond credit under Section 54A, Internal Revenue Code; or
(ii) qualified zone academy bond under Section 1397E, Internal Revenue Code;
(v) for a taxable year beginning on or after January 1, 2019, but beginning on or before
December 31, 2019, only:
(i) the amount of any FDIC premium paid or incurred by the taxpayer that is
disallowed as a deduction for federal income tax purposes under Section 162(r), Internal
Revenue Code, on the taxpayer's 2018 federal income tax return; plus
(ii) the amount of any FDIC premium paid or incurred by the taxpayer that is
disallowed as a deduction for federal income tax purposes under Section 162(r), Internal
Revenue Code, for the taxable year;
(w) for a taxable year beginning on or after January 1, 2020, the amount of any FDIC
premium paid or incurred by the taxpayer that is disallowed as a deduction for federal income
tax purposes under Section 162(r), Internal Revenue Code, for the taxable year; and
(x) for a taxable year beginning on or after January 1, 2020, but beginning on or before
December 31, 2020, the amount of:
(i) a paycheck protection loan similar to a loan forgiven in accordance with 15 U.S.C.
Sec. 636(a)(36) that is:
(A) authorized by the federal government;
(B) provided in response to COVID-19;
(C) forgiven if the borrower meets the expenditure requirements; and
(D) subject to federal income tax, to the extent that a deduction for the expenditures
paid with the loan is disallowed; and
(ii) any grant funds or forgiven loans that:
(A) the taxpayer receives from the state, a county within the state, or a municipality
within the state in response to COVID-19;
(B) are funded using federal revenue received by the state, the county, or the
municipality to respond to COVID-19; and
(C) are included in unadjusted income.
(2) For purposes of Subsection (1)(b):
(a) the subtraction shall be made by claiming the subtraction on a return filed:
(i) under this chapter for the taxable year for which the net capital loss is incurred; and
(ii) by the due date of the return, including extensions; and
(b) a net capital loss for a taxable year shall be:
(i) subtracted for the taxable year for which the net capital loss is incurred; or
(ii) carried forward as provided in Sections 1212(a)(1)(B) and (C), Internal Revenue
Code.
(3) (a) For purposes of calculating the subtraction provided for in Subsection (1)(k), a
taxpayer shall first subtract from a dividend considered to be received or received an expense
directly attributable to that dividend.
(b) For purposes of Subsection (3)(a), the amount of an interest expense that is
considered to be directly attributable to a dividend is calculated by multiplying the interest
expense by a fraction:
(i) the numerator of which is the taxpayer's average investment in the dividend paying
subsidiaries; and
(ii) the denominator of which is the taxpayer's average total investment in assets.
(c) (i) For purposes of calculating the subtraction allowed by Subsection (1)(k), in
determining income apportionable to this state, a portion of the factors of a foreign subsidiary
that has dividends that are partially subtracted under Subsection (1)(k) shall be included in the
combined report factors as provided in this Subsection (3)(c).
(ii) For purposes of Subsection (3)(c)(i), the portion of the factors of a foreign
subsidiary that has dividends that are partially subtracted under Subsection (1)(k) that shall be
included in the combined report factors is calculated by multiplying each factor of the foreign
subsidiary by a fraction:
(A) not to exceed 100%; and
(B) (I) the numerator of which is the amount of the dividend paid by the foreign
subsidiary that is included in adjusted income; and
(II) the denominator of which is the current year earnings and profits of the foreign
subsidiary as determined under the Internal Revenue Code.
(d) A dividend described in Subsection (1)(k) includes amounts included in federal
taxable income under Section 965(a), Internal Revenue Code and amounts included in federal
taxable income under Section 951A, Internal Revenue Code.
(4) (a) For purposes of Subsection (1)(l), a taxpayer may not make a subtraction under
Subsection (1)(l):
(i) if the taxpayer elects to file a worldwide combined report as provided in Section
59-7-403
; or
(ii) for the following:
(A) income generated from intangible property; or
(B) a capital gain, dividend, interest, rent, royalty, or other similar item that is
generated from an asset held for investment and not from a regular business trading activity.
(b) In calculating the subtraction provided for in Subsection (1)(l), a foreign operating
company:
(i) may not subtract an amount provided for in Subsection (1)(k) or (l); and
(ii) prior to determining the subtraction under Subsection (1)(l), shall eliminate a
transaction that occurs between members of a unitary group.
(c) For purposes of the subtraction provided for in Subsection (1)(l), in determining
income apportionable to this state, the factors for a foreign operating company shall be
included in the combined report factors in the same percentages as the foreign operating
company's adjusted income is included in the combined adjusted income.
(d) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
commission may by rule define what constitutes:
(i) income generated from intangible property; or
(ii) a capital gain, dividend, interest, rent, royalty, or other similar item that is
generated from an asset held for investment and not from a regular business trading activity.
(5) (a) For purposes of the subtraction provided for in Subsection (1)(o), the amount of
a reduction in basis shall be allowed as an expense for the taxable year in which a federal tax
credit is claimed if:
(i) there is a reduction in federal basis for a federal tax credit; and
(ii) there is no corresponding tax credit allowed in this state.
(b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
commission may by rule define what constitutes an item similar to Subsections (1)(o)(i)
through (iv).
Section 3. Section 
59-7-402
 is amended to read:
59-7-402.
Water's edge combined report.
(1) Except as provided in Section 
59-7-403
, if any corporation listed in Subsection
59-7-101
[
(39)
]
(40)
(a) is doing business in Utah, the unitary group shall file a water's edge
combined report.
(2) (a) A group of corporations that are not otherwise a unitary group may elect to file a
water's edge combined report if each member of the group is:
(i) doing business in Utah;
(ii) part of the same affiliated group; and
(iii) qualified, under Section 1501, Internal Revenue Code, to file a federal
consolidated return.
(b) Each corporation within the affiliated group that is doing business in Utah must
consent to filing a combined report. If an affiliated group elects to file a combined report, each
corporation within the affiliated group that is doing business in Utah must file a combined
report.
(c) Corporations that elect to file a water's edge combined report under this section may
not thereafter elect to file a separate return without the consent of the commission.
Section 4. 
Retrospective operation.
This bill has retrospective operation for:
(1) the last taxable year of a taxpayer beginning on or before December 31, 2017; and
(2) a taxable year beginning on or after January 1, 2018.