Instructions For 2010 Form 4cs: Sharing Of Research Credits For Combined Group Members (Page 2 of 3) in pdf

Form 4CS Instructions

■ Column d. Gross Tax – On the line corresponding

CAUTION: If the member with the sharable research

to each member, enter the gross tax from line Q of

credit already used part of that credit against its own

the member’s Form 4M.

tax liability on Form 4M, Part III, line 3, you must

reduce the amount you enter in Part I of Form 4CS

■ Column e. Member’s Own Credits Used – On the

by the amount already used.

line corresponding to each member, enter the total

credits the member used against its own tax liability.

This is the amount from the member’s Form 4M,

If a corporation is sharing its research credits, it may

Part III, line 3.

choose to share only a portion of the sharable

amount. In column c, enter only the amount that the

■ Column f. Gross Tax Minus Member’s Own

corporation will be sharing.

Credits Used – The difference between the amounts

■ Line 1f. Total from Additional Companies – If

in columns d and e represents the member’s

remaining tax liability.

there are more than five companies that will be shar-

ing research credits with the rest of the group, enter

■ Line 3h. Total from Additional Companies – If

the total from column c of that schedule on line 1f.

there are more than seven companies in the com-

bined group, enter the total from column g of the ad-

ditional schedule on line 3h.

Part II: Tax Liability Eligible for Shared Credits

Part II applies to all corporations in the combined

Part III: Percentage to be Applied to

group that have a tax liability.

Combined Return

■ Columns a and b. Name and FEIN of Members –

■ Line 6. Percentage of Aggregate Sharable

Enter the name and federal employer identification

Amount – Compare the aggregate sharable research

number (FEIN) of each company in the combined

credits you computed in Part I (line 2) to the total

group that has a tax liability. Do not include corpora-

eligible tax liability you computed in Part II (line 5 of

tions that are not combined group members, even if

Part III). The percentage on line 6 represents the

they are included in the combined return for purposes

percentage of the aggregate sharable research

of reporting separate entity items.

credits that will be used against the combined group’s

tax liability.

If there are more than seven members of the com-

bined group, prepare a separate schedule with col-

To apply the aggregate sharable research credits

umns a through g and list the additional companies

against the combined group’s tax liability, do the

and their FEINs on a separate schedule.

following for each combined group member you listed

■ Column c1. Share of Combined Unitary

in Part I:

Income – For each member you listed in columns a

1. Multiply the percentage on line 6 by the sharable

and b, enter the sum of the amounts on line L1 and

credits you entered for that corporation in Part I,

line L2 of the member’s Form 4M.

column c.

■ Column c2. Tax Attributable to Combined

2. Enter the result on line 4 of Part III of that

member’s Form 4M.

Unitary Income – Multiply the amount on line c1 by

7.9% and enter the result on line c2. This is the

The sum of the amounts on Line 4 of Part III of the

maximum amount of the member’s tax liability that

members’ Forms 4M should equal the lesser of line 2

may be offset by shared research credits.

or line 5 of Form 4CS.

Instructions For 2010 Form 4cs: Sharing Of Research Credits For Combined Group Members Page 2

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