SEC. 6. MANNER OF ELECTING

AND STATEMENTS REQUIRED TO COMPUTE THE ECONOMIC ACTIVITY LIMITATION ON A CONSOLIDATED BASIS

.01 The election to compute the economic activity limitation on a consolidated basis shall be made for the affiliated group by the common parent corporation. The common parent shall make the election by filing an election statement with its timely filed (including extensions) tax return for the first taxable year for which the election is made. Where the common parent and the possession affiliates have different taxable years, the election shall be made for the year of the common parent with which or within which the year of the excess limitation possession affiliate ends.

.02 The election statement shall contain the name, taxpayer information number, and address of each possession affiliate on whose behalf the election is made.

.03 In the event that the common parent corporation is a foreign corporation that does not have a U.S. tax return filing obligation, the foreign parent shall designate a possession

affiliate to file the original election statement with that affiliate’s tax return for the first taxable year for which the election is made.

.04 The election is not valid unless all possession affiliates consent to it. By consenting to the election, all possession affiliates agree to provide information necessary to substantiate the credit computation and allocation. A failure to provide such information will invalidate the election.

.05 The common parent corporation or its designate shall file an amended election statement with its timely filed tax return to reflect any changes in the status or group membership of the possession affiliates for any taxable year after the first taxable year to which the election applies.

.06 Subsequently created or acquired possession affiliates are bound by the initial election. An election may be revoked for the group by the common parent corporation only with the consent of the Commissioner.

.07 Each excess credit affiliate that is allocated the excess economic activity limitation amount of an excess limitation affiliate must attach to its tax return a statement indicating the identity of the excess limitation affiliate, the taxable year in which the excess limitation arose, and the amount of that limitation allocated to the excess credit affiliate.