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Instructions for 2014 Form 6CS:

Sharing of Research Credits for Combined Group Members

Purpose of Form 6CS

For special rules that apply in cases of subgroups

and a corporation’s options regarding its sharable

Form 6CS is for combined groups in which one or

research credits, see s. Tax 2.61(10), Wisconsin Ad-

more corporations in the group are sharing research

ministrative Code. In general, the rules that apply to

credits with the rest of the group, as permitted by

sharable research credits are similar to the rules that

sec. 71.255(6)(c), Wis. Stats.

apply to sharable net business loss carryforwards,

except net business loss carryforwards cannot be

sharable if they were incurred in taxable years begin-

The purpose of Form 6CS is to compute and report

ning before January 1, 2009.

the amount of each combined group member’s avail-

able research credit that it is sharing. Complete only

one Form 6CS for the entire combined group.

Line-by-Line Instructions

Enter the information for each member in a separate

Research Credits Eligible for Sharing

column. If there are more than three members, use

additional Forms 6CS. For example, if there are sev-

“Research credits” that may be eligible for sharing

en members that have shareable research credits,

include:

enter members one through three on Form 6CS (do

•

not complete the combined total column yet). Next,

Research

expense

credits

computed

enter members four through six on an additional

Schedule R, R-1, or R-2, including unused

Form 6CS (do not complete the combined total col-

carryforwards.

umn yet). Finally, complete a new Form 6CS for the

seventh and final member. Complete the combined

•

Research facilities credit carryforwards.

total column on the last Form 6CS for all group mem-

bers.

•

Carryforward of unused development zones

research credit.

These instructions are presented in the order the

lines appear on Form 6CS:

In general, a corporation may only share its research

credits with the combined group if it was a member of

that same combined group in the year the credit orig-

inated. However, if the credit originated before Janu-

■ Line 1 – Enter the amount of sharable research

ary 1, 2009, the corporation may share the credit if it

would have been in that same combined group had

credits each corporation will be sharing with the rest

Wisconsin law required combined reporting in the

of the group. The amount you enter cannot exceed

year the credit originated.

the corporation’s total sharable research credits as of

the beginning of the taxable year, net of any amount

Note: The super research and development credit

already used by the member against its own gross

may not be shared among combined group mem-

tax on Form 6, Part V, line 3.

bers.

If the corporation has both sharable and non-

sharable research credits and used a portion of those

NOTE: A combined group member’s research

credits against its own gross tax, the research credits

credit carryforwards may be shared with the rest of

are considered used on a pro rata basis from both

the group even if they originated before January 1,

their sharable and non-sharable amounts.

2009, as long as they otherwise qualify as sharable

credits.

NOTE: A corporation that has sharable research

credits is not required to share them. If there are

In general, a corporation is considered to be in the

corporations in the group that have sharable

same combined group as in the year the credit origi-

research credits but will not be sharing them, do not

nated if it is in same common unitary business with

include those corporations on this form.

its affiliates as in the year the credit originated. The

mere addition of new members or departure of mem-

bers does not create a different combined group.

IC-548

Instructions For 2014 Form 6cs - Sharing Of Research Credits For Combined Group Members

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