Instructions For Schedule 355u-Cs - Credits Shared From Other Members (Page 2 of 3) in pdf

A manufacturing corporation is a member that is engaged in manufacturing in Massachusetts in

the instance in which its Massachusetts manufacturing activities are substantial within the

meaning of 830 CMR 63.58.2.1. Note that a corporation that is not itself engaged in

manufacturing but is required to determine its apportioned share of the combined group’s taxable

income as if it were a manufacturing corporation (i.e., because it sells goods manufactured by

another member of the group) may be considered to be a manufacturing corporation solely for

the purpose of completing this schedule and sharing credits generated by the other group

members pursuant to M.G.L. c. 63, § 31A if the manufacturing activities attributed to the

member are within Massachusetts and are substantial. See 830 CMR 63.32B.2(7)(g)2.d.

A corporation is primarily engaged in agriculture or commercial fishing if the facts and

circumstances with respect to the corporation’s activities support this determination.

Check one box to indicate whether the financial institution excise, the utility corporation excise

or the general business corporation excise applies. S Corporations taxable under M.G.L. c. 63, §

2B are considered financial institutions. S corporations taxable under M.G.L. c. 63, § 32D are

considered general business corporations.

Enter the name of the “contributing member” (i.e., the corporation that generated the credits

being used) as stated on its Schedule U-IC and its Federal Identification number.

Check one box to indicate the type of credit being shared. If more than one type of credit is being

shared from the same contributing member, the member using the credits must complete an

additional Schedule U-CS for each additional type of credit that is being shared.

Also enter the name of the principal reporting corporation, its Federal Identification number and

the ending date of the combined group’s taxable year.

Line Instructions for Schedule U-CS

In general, only credits that were generated in a tax year beginning on or after January 1,

Line 1.

2009 may be shared in a combined report. However, 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 credits in tax years beginning on or after January 1,

2009 are discussed at 830 CMR 63.32B.2(9)(c)(2).

In any instance where a member can share credits that date back to different tax years, the

member is not required to share these credits using a “last in first out” (i.e., “LIFO”) approach.

That is, if a member has unused credits from tax year 2008 that may not be shared and unused

credits from tax year 2009 that may be shared , it may share the credits from tax year 2009 with a

combined group member (assuming that the sharing is otherwise permissible and consistent with

the applicable rules).

Enter the earliest tax year ending date (MM/YYYY) to which the shared credits relate. If the

shared credits relate to only one such tax year, enter the ending date of that year.

Page 2 of 3

Instructions For Schedule 355u-Cs - Credits Shared From Other Members Page 2