Instructions For Schedule 355u-Cs - Credits Shared From Other Members printable pdf download

Combined Reporting Instructions

2012 Schedule U-CS Instructions

Credits Shared from Other Members

A member of a combined group may be allowed to share a credit that is generated by another

member where the credit derives from the combined group’s unitary business (or business in

general in the case of an affiliated group election) to offset against its excise resulting from its

apportioned share of the combined group’s taxable income. The sharing of the credits must be

validated by the completion and inclusion of Schedule U-CS with the combined report,

identifying both the member using the credits and the “contributing member” whose credits are

being used. The schedule must be filed by the member using the credits. If the member using the

credits is using a credit contributed by two or more group members, it must file a separate

Schedule U-CS for each such contributing member. Further, if the member using the credits is

using two or more types of credits from the same group member, it must file a separate Schedule

U-CS for each type of credit.

A member may only use a shared credit if it would be eligible to generate and use the credit itself

under the provisions of M.G.L. c. 63 to which it is subject. Thus, for example, a financial

institution is eligible to share the EOAC because it is eligible to generate and use the EOAC

pursuant to the provisions of M.G.L. c. 63, § 38N. However, a financial institution is not eligible

to share the ITC or the research credit because it not eligible to generate or use either such credit

pursuant to the provisions of M.G.L. c. 63, § 31A and §38M, respectively. See 830 CMR

63.23B.2(9).

The sharing of credits must in all cases be consistent with the requirements and limitations

referenced in 830 CMR 63.32B.2(9).

Note that certain credits, including the credits conferred under M.G.L. c. 63, § 38M and 38N,

could be shared for tax years beginning prior to January 1, 2009. The rules for sharing such prior

year credits in tax years beginning on or after January 1, 2009 are discussed at 830 CMR

63.32B.2(9)(c)(2).

Header for Schedule U-CS

For each Schedule U-CS filed, enter the name of the member (as stated on its Schedule U-ST)

that is using the credits and its Federal Identification number.

If the member is claiming the Investment Tax Credit (ITC) under M.G.L. c 63, §31A, check one

box to indicate its classification for this purpose. If the credit to be used is not the ITC, do not

check any box.

A corporation qualifies as an R&D corporation if its principal activity is research and

development and it otherwise qualifies under M.G.L. c. 63, § 42B (e.g., among other things, by

meeting the requirement that 2/3 of its receipts attributable to Massachusetts are from research

and development activity).

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Instructions For Schedule 355u-Cs - Credits Shared From Other Members