Code of Federal Regulations Title 26. Internal Revenue § 26.1.1502–100 Corporations exempt from tax

(a) In general—(1) Computation of tax liability.The tax liability for a consolidated return year of a group of two or more corporations described in section 1504(e) which are exempt from taxation under section 501 (hereinafter referred to in this section as “exempt group”) shall be determined on a consolidated basis by applying the provisions of subchapter F of chapter 1 of the code in the manner provided in this section. See section 1504(e) for tax-exempt corporations eligible to file a consolidated return.

(2) Applicability of other consolidated return provisions.The provisions of § 1.1502–1 through § 1.1502–80 shall be applicable to an exempt group to the extent they are not inconsistent with the provisions of this section or the provisions of subchapter F of chapter 1 of the Code. For purposes of applying the provisions of § 1.1502–1 through § 1.1502–80 to an exempt group, the following substitutions shall be made:

(1) The separate unrelated business taxable income of each member of the exempt group (determined under paragraph (d) of this section);

(2) Any consolidated net operating loss deduction (determined under § 1.1502–21A or 1.1502–21 (as appropriate)) subject to the limitations provided in section 512(b)(6);

(3) Any consolidated charitable contribution deduction (determined under § 1.1502–24) subject to the limitations provided in section 512(b)(10);  and

(4) Any consolidated net gain or net loss from the disposition of debt-financed property (as defined in section 514(b)) taken into account as provided by section 514(a), or from the cutting of timber to which section 631 applies.

(1) The provisions of paragraphs (a) through (k) and (o) of § 1.1502–12 shall apply;  and

(2) No charitable contributions deduction shall be taken into account under section 512(b)(10).