At the Multistate Tax Commission (MTC) Executive Committee Meeting in Spokane, Washington, the Arm’s-Length Adjustment Service (ALAS) Advisory Group provided an update on its transfer pricing effort. On May 7, 2015, the Executive Committee approved the Final Program Design for the transfer pricing program (the Program). After receiving approval from the MTC’s Executive Committee, ALAS sought to attain critical mass of states needed to launch the program.

ALAS began its efforts in June 2014. It spent approximately a year designing the Program in order to garner the support – including financial support – of at least seven states. When the Final Program Design was approved, only six states had agreed to participate: Alabama, Iowa, Kentucky, New Jersey, North Carolina and Pennsylvania. With interest lower than anticipated, ALAS continued to solicit state participation over the past three months, but to no avail.

At today’s meeting, incoming Executive MTC Director Greg Matson indicated that no additional states have joined the Program. Two additional states expressed interest, but have yet to formally join. In the coming months, the MTC will meet with four additional states to solicit participation.