Definitions

# (1)

“Affiliated group” means an affiliated group of corporations as defined in section 1504 of the Internal Revenue Code.

# (2)

“Unitary group” means a corporation or group of corporations engaged in business activities that constitute a unitary business.

# (3)

# (a)

“Unitary business” means a business enterprise in which there exists directly or indirectly between the members or parts of the enterprise a sharing or exchange of value as demonstrated by:

(A) Centralized management or a common executive force;

(B) Centralized administrative services or functions resulting in economies of scale; or

(C) Flow of goods, capital resources or services demonstrating functional integration.

# (b)

“Unitary business” may include, but is not limited to, a business enterprise the activities of which:

(A) Are in the same general line of business (such as manufacturing, wholesaling or retailing); or

(B) Constitute steps in a vertically integrated process (such as the steps involved in the production of natural resources, which might include exploration, mining, refining and marketing).

# (c)

Whether two or more corporations that are included in the same consolidated federal return are engaged in a unitary business may be determined by making reference to any corporation that is owned or controlled directly or indirectly by the same interests.