Reg. § 1.1502-55 Computation of alternative minimum tax of consolidated groups.
(a)-(h) (3) [Reserved]
(h) (4) Separate return year minimum tax credit.
(i)-(ii) [Reserved]
(iii)
(A) Limitation on portion of separate return year minimum tax credit arising in separate return limitation years The aggregate of a member's minimum tax credits arising in SRLYs that are included in the consolidated minimum tax credits for all consolidated return years of the group may not exceed—
(1) The aggregate for all consolidated return years of the member's contributions to the consolidated section limitation for each consolidated return year; reduced by
(2) The aggregate of the member's minimum tax credits arising and absorbed in all consolidated return years (whether or not absorbed by the member).
(B) Computational rules
(1) Member's contribution to the consolidated section 53(c) limitation Except as provided in the special rule of of this section, a member's contribution to the consolidated section limitation for a consolidated return year equals the member's share of the consolidated net regular tax liability minus its share of consolidated tentative minimum tax. The group computes the member's shares by applying to the respective consolidated amounts the principles of section and the percentage method under , assuming a 100% allocation of any decreased tax liability. The group makes proper adjustments so that taxes and credits not taken into account in computing the limitation under section are not taken into account in computing the member's share of the consolidated net regular tax, etc. (See, for example, the taxes described in section that are disregarded in computing regular tax liability.)
(2) Adjustment for year in which alternative minimum tax is paid For a consolidated return year for which consolidated tentative minimum tax is greater than consolidated regular tax liability, the group reduces the member's share of the consolidated tentative minimum tax by the member's share of the consolidated alternative minimum tax for the year. The group determines the member's share of consolidated alternative minimum tax for a year using the same method it uses to determine the member's share of the consolidated minimum tax credits for the year.
(3) Years included in computation For purposes of computing the limitation under this , the consolidated return years of the group include only those years, including the year to which a credit is carried, that the member has been continuously included in the group's consolidated return, but exclude any years after the year to which the credit is carried.
(4) Subgroup principles The SRLY subgroup principles under apply for purposes of this . The predecessor and successor principles under also apply for purposes of this .
(5) Overlap with section 383 The principles under apply for purposes of this . For example, an overlap of this and the application of section with respect to a credit carryover occurs if a corporation becomes a member of a consolidated group (the SRLY event) within six months of the change date of an ownership change giving rise to a section credit limitation with respect to that carryover (the section event), with the result that the limitation of this does not apply. See and -1; see also (subgroup rules).
(C) Effective date—(1) In general This generally applies to consolidated return years for which the due date of the income tax return (without extensions) is after March 13, 1998. See for an optional effective date rule (generally making this also applicable to a consolidated return year beginning on or after January 1, 1997, if the due date of the income tax return (without extensions) was on or before March 13, 1998).
(i) Contribution years In general, a group does not take into account a consolidated taxable year for which the due date of the income tax return (without extensions) is on or before March 13, 1998, in determining a member's (or subgroup's) contributions to the consolidated section limitation under this . However, if a consolidated group chooses to apply the optional effective date rule, the consolidated group shall not take into account a consolidated taxable year beginning before January 1, 1997 in determining a member's (or subgroup's) contributions to the consolidated section limitation under this .
(ii) Special subgroup rule. In the event that the principles of do not apply to a particular credit carryover in the current group, then solely for purposes of applying this to determine the limitation with respect to that carryover and with respect to which the SRLY register (the aggregate of the member's or subgroup's contribution to consolidated section limitation reduced by the aggregate of the member's or subgroup's minimum tax credits arising and absorbed in all consolidated return years) began in a taxable year for which the due date of the return is on or before May 25, 2000, the principles of shall be applied without regard to the phrase “or for a carryover that was subject to the overlap rule described in of this section or with respect to another group (the former group).”
(2) Overlap rule. of this section (relating to overlap with section ) applies to taxable years for which the due date (without extensions) of the consolidated return is after May 25, 2000. For purposes of of this section, only an ownership change to which section , as amended by the Tax Reform Act of 1986 (100 Stat. 2095), applies and which results in a section credit limitation shall constitute a section event. The optional effective date rule of (generally making this also applicable to a consolidated return year beginning on or after January 1, 1997, if the due date of the income tax return (without extensions) was on or before March 13, 1998) does not apply with respect to of this section (relating to the overlap rule).
[T.D. 8884, 65 FR 33759, May 25, 2000]