Committee backs substitute on receipts attribution; delayed effective date and work group directed to study cross-state gross-receipts changes

Delegate Del. Watts presented House Bill 1743 and the substitute that followed stakeholder meetings and counsel review. The substitute adds language that such receipts shall be determined based on the facts and circumstances of the taxpayer's business operations without regard to the amount of income ultimately computed as taxable under the methodology used by another state to which receipts are attributable. It also defines "income or other tax based upon income" as a net income tax as defined by federal law or any other tax the measure of which is based in whole or in part on gross or net income or receipts. The substitute has a delayed effective date of July 1, 2026, and directs the Department of Taxation to convene a work group to study comparative treatment of net operating losses and related issues and to report findings and recommendations to the money committees by October 1, 2025.