Section 35-3-08-07-100 - Taxpayer Election to File Consolidated or Combined Returns1. Two or more members of an affiliated group of corporations may elect to file a consolidated income tax return when all the business activities of the group of affiliated corporations included in the consolidated return are conducted in, and are taxable solely in, Mississippi. In determining whether the business activities of the group are conducted in and are taxable in more than one state, the test of "taxable in another state" as provided and defined in the Multistate Regulation, will apply.2. Two or more members of an affiliated group of corporations taxable in Mississippi and where one or more are taxable in another state, as provided in the Multistate Regulation, may elect to file a combined income tax return, as follows:a. Net income (or loss) of each member of the affiliated group included in the combined return shall be computed on an individual corporate member basis.b. Mississippi taxable income for each member included in the combined return shall be determined in accordance with the provisions of the Multistate Regulation. The formula prescribed in, or the direct accounting procedures prescribed in such regulation, shall be applied to each member on an individual corporate basis to determine net business income apportioned or directly assigned to Mississippi. To that amount shall be added non-business income allocated or apportioned to Mississippi by each member. The results from each member's computation shall then be combined to determine the taxable income of the affiliated group.35 Miss. Code. R. § 3-08-07-100