This website will be unavailable from Thursday, May 30, 2024 at 6:00 p.m. through Monday, June 3, 2024 at 7:00 a.m. due to data center maintenance.

	Amend HB 4265 as follows:                                                    
	(1)  On page 1, line 5, strike "Section 171.0001(8), Tax 
Code, is" and substitute "Sections 171.0001(1), (7), and (8), Tax 
Code, are".
	(2)  On page 1, between lines 6 and 7, insert the following:                   
		(1)  "Affiliated group" means:                                         
			(A)  a group of one or more entities in which a 
controlling interest is owned by a common owner or owners, either 
corporate or noncorporate, or by one or more of the member entities; 
or
			(B)  a group that is composed of one or more  
entities in which  an equal interest is owned by all owners, 
corporate or noncorporate, or by all member entities, but only if 
none of the owners or member entities have more than 25 employees.
		(7)  "Combined group" means taxable entities that are 
part of an affiliated group engaged in a unitary business and that 
are required or permitted to file a group report under Section 
171.1014.
	(3)  Add the following appropriately numbered SECTION to 
read as follows and renumber subsequent SECTIONS accordingly:
	SECTION ____.  Section 171.1014, Tax Code, is amended by 
amending Subsection (a) and adding Subsections (a-1) and (a-2) to 
read as follows:
	(a)  Except as provided by Subsection (a-1), taxable
[Taxable] entities that are part of an affiliated group engaged in a 
unitary business shall file a combined group report in lieu of 
individual reports based on the combined group's business. 
	(a-1)  Taxable entities that are part of an affiliated group 
described by Section 171.0001(1)(B) that is engaged in a unitary 
business may elect to file a combined report in lieu of individual 
reports based on the combined group's business.
	(a-2)  A [The] combined group may not include a taxable 
entity that conducts business outside the United States if 80 
percent or more of the taxable entity's property and payroll, as 
determined by factoring under Chapter 141, are assigned to 
locations outside the United States.  In applying Chapter 141, if 
either the property factor or the payroll factor is zero, the 
denominator is one.  The combined group may not include a taxable 
entity that conducts business outside the United States and has no 
property or payroll if 80 percent or more of the taxable entity's 
gross receipts, as determined under Sections 171.103, 171.105, and 
171.1055, are assigned to locations outside the United States.