[Code of Federal Regulations]
[Title 26, Volume 12]
[Revised as of April 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR1.1502-79]

[Page 478-479]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
PART 1_INCOME TAXES--Table of Contents
 
Sec. 1.1502-79  Separate return years.

    (a) Carryover and carryback of consolidated net operating losses to 
separate return years. For losses arising in consolidated return years 
beginning before January 1, 1997, see Sec. 1.1502-79A(a). For later 
years, see Sec. 1.1502-21(b).
    (b) Carryover and carryback of consolidated net capital loss to 
separate return years. For losses arising in consolidated return years 
beginning before January 1, 1997, see Sec. 1.1502-79A(b). For later 
years, see Sec. 1.1502-22(b).
    (c) Carryover and carryback of consolidated unused investment credit 
to separate return years--(1) In general. If a consolidated unused 
investment credit can be carried under the principles of section 46(b) 
and paragraph (b) of Sec. 1.1502-3 to a separate return year of a 
corporation (or could have been so carried if such corporation were in 
existence) which was a member of the group in the year in which such 
unused credit arose, then the portion of such consolidated unused credit 
attributable to such corporation (as determined under subparagraph (2) 
of this paragraph) shall be apportioned to such corporation (and any 
successor to such corporation in a transaction to which section 381(a) 
applies) under the principles of Sec. 1.1502-21(b) (or Sec. Sec. 
1.1502-79A(a)(1) and (2), as appropriate) and shall be an investment 
credit carryover or carryback to such separate return year.
    (2) Portion of consolidated unused investment credit attributable to 
a member--(i) Investment credit carryback. In the case of a consolidated 
unused credit which is an investment credit carryback, the portion of 
such consolidated unused credit attributable to a member of the group is 
an amount equal to such consolidated unused credit multiplied by a 
fraction, the numerator of which is the credit earned of such member for 
the consolidated unused credit year, and the denominator of which is the 
consolidated credit earned for such unused credit year.
    (ii) Investment credit carryover. In the case of a consolidated 
unused credit which is an investment credit carryover, the portion of 
such consolidated unused credit attributable to a member of the group is 
an amount equal to such consolidated unused credit multiplied by a 
fraction, the numerator of which is the credit earned with respect to 
any section 38 property placed in service in the consolidated unused 
credit year and owned by such member (whether or not placed in service 
by such member) at the close of the last day as of which the taxable 
income of such member is included in a consolidated return filed by the 
group, and the denominator of which is the consolidated credit earned 
for such unused credit year.
    (d) Carryover and carryback of consolidated unused foreign tax--(1) 
In general. If a consolidated unused foreign tax can be carried under 
the principles of section 904(d) and paragraph (e) of Sec. 1.1502-4 to 
a separate return year of a corporation (or could have been so carried 
if such corporation were in existence) which was a member of the group 
in the year in which such unused foreign tax arose, then the portion of 
such consolidated unused foreign tax attributable to such corporation 
(as determined under subparagraph (2) of this paragraph) shall be 
apportioned to such corporation (and any successor to such corporation 
in a transaction to which section 381(a) applies) under the principles 
of Sec. 1.1502-21(b) (or Sec. Sec. 1.1502-79A(a)(1) and (2), as 
appropriate) and shall be deemed paid or accrued in such separate return 
year to the extent provided in section 904(d).

[[Page 479]]

    (2) Portion of consolidated unused foreign tax attributable to a 
member. The portion of a consolidated unused foreign tax for any year 
attributable to a member of a group is an amount equal to such 
consolidated unused foreign tax multipled by a fraction, the numerator 
of which is the foreign taxes paid or accrued for such year (including 
those taxes deemed paid or accrued, other than by reason of section 
904(d)) to each foreign country or possession (or to all foreign 
countries or possessions if the overall limitation is effective) by such 
member, and the denominator of which is the aggregate of all such taxes 
paid or accrued for such year (including those taxes deemed paid or 
accrued, other than by reason of section 904(d)) to each such foreign 
country or possession (or to all foreign countries or possessions if the 
overall limitation is effective) by all the members of the group.
    (e) Carryover of consolidated excess charitable contributions to 
separate return years--(1) In general. If the consolidated excess 
charitable contributions for any taxable year can be carried under the 
principles of section 170(b)(2) and paragraph (b) of Sec. 1.1502-24 to 
a separate return year of a corporation (or could have been so carried 
if such corporation were in existence) which was a member of the group 
in the year in which such excess contributions arose, then the portion 
of such consolidated excess charitable contributions attributable to 
such corporation (as determined under subparagraph (2) of this 
paragraph) shall be apportioned to such corporation (and any successor 
to such corporation in a transaction to which section 381(a) applies) 
under the principles of Sec. 1.1502-21(b) (or Sec. Sec. 1.1502-
79A(a)(1) and (2), as appropriate) and shall be a charitable 
contribution carryover to such separate return year.
    (2) Portion of consolidated excess charitable contributions 
attributable to a member. The portion of the consolidated excess 
charitable contributions attributable to a member of a group is an 
amount equal to such consolidated excess contributions multiplied by a 
fraction, the numerator of which is the charitable contributions paid by 
such member for the taxable year, and the denominator of which is the 
aggregate of all such charitable contributions paid for such year by all 
the members of the group.

[T.D. 6894, 31 FR 11794, Sept. 8, 1966, as amended by T.D. 7728, 45 FR 
72650, Nov. 3, 1980; T.D. 8294, 55 FR 9438, Mar. 14, 1990; T.D. 8319, 55 
FR 49038, Nov. 26, 1990; T.D. 8364, 56 FR 47402, Sept. 19, 1991; T.D. 
8597, 60 FR 36710, July 18, 1995; T.D. 8677, 61 FR 33324, 33325, 33334, 
June 27, 1996; T.D. 8823, 64 FR 36100, July 2, 1999]