SECTION 1. Chapter 63 of the General Laws, as appearing in the 2000 Official Edition, is hereby amended by adding, after section 2A a new section:-

Section 2B.      If two or more financial institutions participated in the filing of a consolidated return of income to the federal government, the net income measure of their excises imposed under section 2 and 2A, at their option, be assessed upon their combined net income, in which case the excise shall be assessed to all said corporations and collected from any one or more of them. The commissioner may require financial institutions that have made such election to report the income measure of the excise, and the minimum excise if applicable, all as set forth in sections 2 and 2A, on a single form; provided, however, that nothing in this section shall be construed to eliminate the requirement that each financial institution participating in a combined return compute the minimum excise if applicable in accordance with said sections 2 and 2A.

Where such election is made, each and every member of the consolidated group subject to taxation under section 2 or 2A shall be included in such return of combined net income. The combined net income shall be determined as follows: (a) the taxable net income of each such financial institution apportioned to this commonwealth pursuant to the provisions of section 2A shall first be separately determined; and (b) the taxable net income of each financial institution, as so determined, shall then be added together and shall constitute their combined net income taxable under this chapter.

Any election made pursuant to this section shall be made on or before the due date, including any extension of time, for the filing of the return required under this chapter and chapter sixty-two C of each member of the group so participating.  Financial institutions electing to file a combined return under this section must continue to file such a combined return for each succeeding taxable year unless and until they receive the written prior approval of the commissioner to file separate returns of income. Such approval shall be granted only if a valid business purpose, other than a reduction of tax, exists for the request. An application to file such separate returns, must be made on or before the due date, including any extension of time, for the filing of the return required under this chapter and chapter sixty-two C.