is made up of separate parts of a single corporation, of a
commonly controlled group of corporations, or both, that are
sufficiently interdependent, integrated and interrelated through
their activities so as to provide a synergy and mutual benefit
that produces a sharing or exchange of value among them and a
significant flow of value to the separate parts. A unitary
business includes all those parts and corporations that are
included in a unitary business under the Constitution of the
United States.
(13) "Water's-edge basis." A system of reporting that
includes the business income and apportionment factors of
certain entities of a unitary business, described as follows:
1. Any member incorporated in the United States or formed
under the laws of any state of the United States, the District
of Columbia, any territory or possession of the United States or
the Commonwealth of Puerto Rico.
2. Any member, regardless of the place incorporated or
formed, if the average of its property, payroll and sales
factors within the United States is twenty per cent or more.
3. Any member which is a domestic international sales
corporation as described in sections 991, 992, 993 and 994 of
the Internal Revenue Code of 1986 (Public Law 99-514, 26 U.S.C.
§§ 991, 992, 993 and 994); a foreign sales corporation as
described in sections 921, 922, 923, 924, 925, 926 and 927 of
the Internal Revenue Code of 1986; or any member which is an
export trade corporation, as described in sections 970 and 971
of the Internal Revenue Code of 1986.
4. Any member not described in subclause 1, 2 or 3 shall
include the portion of its business income derived from or
attributable to sources within the United States, as determined
20170SB0812PN1056 - 7 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30