The temporary regulations (T.D. 9205) that is the subject of this correction are under section 41(f).

As published, the temporary regulations (T.D. 9205) contain errors that may prove to be misleading and are in need of clarification.

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Paragraph 1. The authority citation for part 1 continues to read in part as follows:

Authority: 26 USC 7805 * * *

1. Section 1.41-6T(e) Example 2 (i), the first line in the table is revised to read as follows:

2. Section 1.41-6T(e) Example 2 (i), second line in the table needs to be revised to read ”$25x”.

3. Section 1.41-6T(e) Example 2 (ii)(B)(1), the first sentence is revised to read as follows: ”The group’s base amount equals the greater of: the group’s fixed-base percentage (3.10 percent) multiplied by the group’s aggregate average annual gross receipts for the 4 taxable years preceding the credit year ($17,000x), or the group’s minimum base amount ($337.50x).”

4. Section 1.41-6T(e) Example 2 (iii), the eighth sentence is revised to read as follows: ”Because the group credit of $29.76x is greater than the sum of the stand-alone entity credits of all the members of the group ($21.67x), each member of the group is allocated an amount of the group credit equal to that member’s stand-alone equity credit.”

5. Section 1.41-6T(e) Example 2 (iii), the ninth sentence is revised to read as follows: ”The excess of the group credit over the sum of the members’ stand alone entity credits ($8.09x) is allocated among the members of the group based on the ratio that each member’s QREs bear to the sum of the QREs of all the members of the group.”

6. Section 1.41-6T(e) Example 2 (iii), the fourth line in the table is revised to read as follows:

7. Section 1.41-6T(e) Example 3 (ii)(C), the second sentence is revised to read as follows: ”The excess of the group credit over the sum of the members’ stand-alone entity credits ($10.00x) is allocated among the members of the group based on the ratio that each member’s QREs bear to the sum of the QREs of all the members of the group.”

8. Section 1.41-6T(e) Example 3 (ii)(C), the fourth line in the table is revised to read as follows:

9. Section 1.41-6T(e) Example 3 (iii)(C), the fourth line in the table is revised to read as follows:

10. Section 1.41-6T(e) Example 5 (iii), the first sentence is revised to read as follows: ”Under paragraph (c)(2) of this section, the stand-alone entity credit for each member of the group must be computed using the method that results in the greater stand-alone entity credit for that member.”

11. Section 1.41-6T(j), the second sentence is revised to read as follows: ”Generally, a taxpayer may use any reasonable method of computing and allocating the credit for taxable years ending before May 24, 2005.”