246, 247, 248, 249 and 250 of the Internal Revenue Code of 1986
(26 U.S.C. §§ 241, 242, 243, 244, 245, 246, 247, 248, 249 and
250), or in the case of a corporation participating in the
filing of consolidated returns to the Federal Government or that
is not required to file a return with the Federal Government,
the taxable income which would have been returned to and
ascertained by the Federal Government before special deductions
provided for in sections 241, 242, 243, 244, 245, 246, 247, 248,
249 and 250 of the Internal Revenue Code of 1986 (26 U.S.C. §§
241, 242, 243, 244, 245, 246, 247, 248, 249 and 250) if separate
returns had been made to the Federal Government for the current
and prior taxable years, subject, however, to any correction
thereof, for fraud, evasion, or error as finally ascertained by
the Federal Government.
(b) Additional deductions shall be allowed from taxable
income on account of any dividends received from any other
corporation but only to the extent that such dividends are
included in taxable income as returned to and ascertained by the
Federal Government. For tax years beginning on or after January
1, 1991, additional deductions shall only be allowed for amounts
included, under section 78 of the Internal Revenue Code of 1986
(Public Law 99-514, 26 U.S.C. § 78), in taxable income returned
to and ascertained by the Federal Government and for the amount
of any dividends received from a foreign corporation included in
taxable income to the extent such dividends would be deductible
in arriving at Federal taxable income if received from a
domestic corporation. For taxable years beginning after December
31, 2021, the additional deduction with respect to dividends
shall not be allowed for dividends between members of a unitary
group.
* * *
(p.1) For taxable years after December 31, 2022, in the case
of a corporation that is a member of a unitary business, the
term "taxable income" shall mean the combined unitary income of
the unitary business, as determined on a water's-edge basis.
* * *
(t) (1) Except as provided in paragraph (2), (3) or (4) for
taxable years beginning after December 31, 2014, and in addition
to any authority the department has on the effective date of
this paragraph to deny a deduction related to a fraudulent or
sham transaction, no deduction shall be allowed for an
intangible expense or cost, or an interest expense or cost,
paid, accrued or incurred directly or indirectly in connection
with one or more transactions with an affiliated entity. In
calculating taxable income under this paragraph, when the
taxpayer is engaged in one or more transactions with an
affiliated entity that was subject to tax in this Commonwealth
or another state or possession of the United States on a tax
base that included the intangible expense or cost, or the
interest expense or cost, paid, accrued or incurred by the
taxpayer, the taxpayer shall receive a credit against tax due in
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