E. Credits

  1. How may a corporation share refundable and nonrefundable tax credits and nonrefundable tax credit carryforwards under combined reporting?


  1. How may a corporation share refundable and nonrefundable tax credits and nonrefundable tax credit carryforwards under combined
    reporting?

    In general, refundable and nonrefundable tax credits and nonrefundable tax credit carryforwards are available only to the separate corporation that generated them.

    An exception applies for the research expense credit and the research facilities credit under sec. 71.28(4) and (5) or 71.47(4) and (5), Wis. Stats., and the carryforward of these credits. A corporation may share all or a portion of the unused credit with the other members of the combined group in the manner provided under sec. 71.255(6)(c), Wis. Stats., and s. Tax 2.61(10), Wisconsin Administrative Code.

    This sharing applies only to the two aforementioned credits; the super research and development credit, which became effective for taxable years beginning on or after January 1, 2011, and before January 1, 2014, under sec. 71.28(4m) or 71.47(4m), Wis. Stats., may not be shared.

    Each member of a combined group reports its refundable tax credits on Form 6, Part III, line 13. Each member will report its nonrefundable tax credits on Form 6, Part V. Combined groups that share its members' research expense and research facilities credits should prepare Form 6CS, Wisconsin Sharing of Research Credits, and show the amount allocated to each member on the Form 6, Part V.

FOR MORE INFORMATION PLEASE CONTACT:

WISCONSIN DEPARTMENT OF REVENUE
Phone: (608) 266-1143
Email additional questions to DORCombinedReporting@revenue.wi.gov

December 16, 2014