Common use of Separate Return Tax Liability Clause in Contracts

Separate Return Tax Liability. 2.1 For each consolidated return year, each Member shall compute its separate return tax liability for the portion of the year in which it is a Member. "Separate return tax liability" means, with respect to any consolidated return year, the federal income tax liability (including alternative minimum tax and environmental tax) which (1) in the case of a Member that is not a Parent, is computed as if the Member had filed a separate federal income tax return and (2) in the case of a Parent, is computed as if the Parent had filed a consolidated federal income return with the Members of its Subgroup. In computing separate return tax liability, each Member or Parent, as the case may be, shall follow the tax elections and other tax positions adopted or prescribed by SFER and shall take into account the adjustments and modifications set forth in Article 2.