Section 100.2240 - Net
a) For purposes of computing the group's combined Illinois base income or equivalent, the group's combined net operating loss (after giving effect to inter member eliminations) can be used to offset the group's combined excess addition modifications. This combined net operating loss (after giving effect to inter member eliminations) can be used to offset the group's combined excess addition modifications. The group's combined excess addition modifications is defined as the total of all addition modifications required by IITA Section 203 (except that prescribed by IITA Section 203(b)(2)(E) and Section 203(c)(2)(E)) for all members of the group, less the total of all subtraction modifications required by IITA Section 203 for all members of the group.
b) However, each group member allowed to carryback or forward a portion of the group's combined federal net operating loss from a year in which that combined federal net operating loss was used to offset any portion of the group's combined excess addition modifications, must take as an addition modification in the carryback and carryforward year its respective share of the NOL addition modification required by IITA Section 203(b)(2)(E) and (c)(2)(E). These respective shares shall be determined in the same manner that the share of the combined federal net operating loss of each member was determined under Section 100.2230(b) of this Part. The amount of the NOL addition modification actually required to be shown in the carryback or carryforward year by any member of the group shall, however, be limited to the amount of loss actually carried to such year by the group member.
1) EXAMPLE 1:
A) FACTS:
i) For 1981, Corporation A filed a separate federal income tax return showing a federal taxable income of $35,000 and an Illinois income tax return reflecting Illinois liability calculated from the $35,000 federal taxable income on a non-combined apportionment basis. For 1984, Corporation A filed a separate federal income tax return showing a net operating loss of $100,000 and an Illinois income tax return reflecting that Corporation A was a member of the same unitary business group as three other corporations – B, C and D – each of which was formed on the first day of the 1984 taxable year. The federal taxable incomes (NOL) for the Illinois income tax purposes and the addition and subtraction modifications of Corporations A, B, C and D for 1984 are as follows: