Instructions for 2010 Form 4CS:
Sharing of Research Credits for Combined Group Members
Purpose of Form 4CS
research credits, see s. Tax 2.61(10), Wisconsin Ad-
ministrative Code. In general, the rules that apply to
Form 4CS is for combined groups in which one or
sharable research credits are similar to the rules that
more corporations in the group are sharing research
apply to sharable net business loss carryforwards,
credits with the rest of the group, as permitted by
except net business loss carryforwards cannot be
sec. 71.255(6)(c), Wis. Stats.
sharable if they were incurred in taxable years begin-
ning before January 1, 2009.
The purpose of Form 4CS is to compute and report
the amount of each combined group member’s avail-
Line-by-Line Instructions
able research credit that it is sharing. Complete only
one Form 4CS for the entire combined group.
These instructions are presented in the order the
lines appear on Form 4CS:
Research Credits Eligible for Sharing
“Research credits” that may be eligible for sharing
include:
Part I: Computation of
Aggregate Sharable Amount
Research expense credits computed on
Schedule R, R-1, or R-2, including unused
Part I applies only to the corporations that originated
carryforwards.
the sharable research credits.
Research facilities credits computed on
■ Columns a and b. Name and FEIN of Members
Schedule R, R-1, or R-2, including unused
with Sharable Research Credits – Enter the name
carryforwards.
and federal employer identification number (FEIN) of
each company that has sharable research credits
Unused carryforward of the development zones
that it will be sharing with the rest of the group. If
research credit.
there are more than five such companies, prepare a
separate schedule with columns a through c and list
In general, a corporation may only share its research
the additional companies and their FEINs in columns
credits with the combined group if it was a member of
a and b of that separate schedule.
that same combined group in the year the credit
originated. However, if the credit originated before
NOTE: A corporation that has sharable research
January 1, 2009, the corporation may share the credit
credits is not required to share them. If there are
if it would have been in that same combined group
corporations in the group that have sharable
had Wisconsin law required combined reporting in
research credits but will not be sharing them, do not
the year the credit originated.
list those corporations in Part I.
NOTE: A combined group member’s research
■ Column c. Sharable Research Credit Amount –
credit carryforwards may be shared with the rest of
Enter the amount of sharable research credits each
the group even if they originated before January 1,
corporation will be sharing with the rest of the group.
2009, as long as they otherwise qualify as sharable
The amount you enter in column c cannot exceed the
credits.
corporation’s total sharable research credits as of the
beginning of the taxable year, net of any amount al-
In general, a corporation is considered to be in the
ready used by the member against its own gross tax
same combined group as in the year the credit origi-
on Form 4M, Wisconsin Combined Group Member-
nated if it is in same common unitary business with
Level Data, Part III, line 3.
its affiliates as in the year the credit originated. The
mere addition of new members or departure of mem-
If the corporation has both sharable and non-
bers does not create a different combined group.
sharable research credits and used a portion of those
credits against its own gross tax, the research credits
For special rules that apply in cases of subgroups
are considered used on a pro rata basis from both
and a corporation’s options regarding its sharable
their sharable and non-sharable amounts.
IC-548