1. (a) If a New Hampshire business organization is a member of a federal consolidated group that has utilized a different averaging convention under section 168(d) of the IRC than would be allowable for the New Hampshire business organization under a separate entity filing, the New Hampshire business organization may elect to follow the averaging conventions of its consolidated group by indicating that choice to the department by attaching the following statement to its business profits tax return:

   “(name of business organization) hereby elects to adopt the averaging conventions of Internal Revenue Code section 168(d) utilized by the (name of parent) federal consolidated group of which it is a part, and hereby attests that its usage will have no material effect on the tax liabilities of (name of business organization).”

2. (b) The business organization's election shall be disallowed when an audit is performed on returns filed by a business organization and the audit determines the election resulted in a material impact upon the business organization's New Hampshire tax liability.
3. (c) The averaging convention otherwise required shall be required for each return so affected in (b), above.
4. (d) A material impact upon the business organization’s New Hampshire tax liability shall occur when there is a variance of 10 % between the tax liabilities calculated using the consolidated group’s averaging convention and the averaging convention of non-consolidated entities.

Source. #6853, eff 9-23-98; ss by #8709, eff 8-25-06 (formerly Rev 302.11); ss by #10758, eff 1-16-15 (from Rev 302.14); ss by #14231, eff 4-3-25, EXPIRES 4-3-35