(2) Allocation of dollar limit (A) Controlled group For purposes of applying the dollar limitation under paragraph (1)(B)— (i) all component members of a controlled group shall be treated as one taxpayer, and (ii) the Secretary shall, under regulations prescribed by him, apportion such dollar limitation among the component members of such controlled group. For purposes of the preceding sentence, the term “controlled group” has the meaning assigned to it by section 1563(a), except that the phrase “more than 50 percent” shall be substituted for the phrase “at least 80 percent” each place it appears in section 1563(a)(1). (B) Partnerships and S corporations In the case of a partnership, the dollar limitation contained in paragraph (1)(B) shall apply with respect to the partnership and with respect to each partner. A similar rule shall apply in the case of an S corporation and its shareholders.
26 USC § 194(b)(2)
None identified, default scope is assumed to be the parent (part VI) of this section.