Agenda - Council - 02/08/2021 - Laserfiche WebLink

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01/13/21 REVISOR EAP/HR 21-01750 as introduced 9.1 year from the date the taxes were paid to the other state. The taxpayer must submit sufficient 9.2 proof to show entitlement to a credit. 9.3 (g) For the purposes of this subdivision, a resident shareholder of a corporation treated 9.4 as an "S" corporation under section 290.9725, must be considered to have paid a tax imposed 9.5 on the shareholder in an amount equal to the shareholder's pro rata share of any net income 9.6 tax paid by the S corporation to another state. For the purposes of the preceding sentence, 9.7 the term "net income tax" means any tax imposed on or measured by a corporation's net 9.8 income. 9.9 (h) For the purposes of this subdivision, a resident partner of an entity taxed as a 9.10 partnership under the Internal Revenue Code must be considered to have paid a tax imposed 9.11 on the partner in an amount equal to the partner's pro rata share of any net income tax paid 9.12 by the partnership to another state. For purposes of the preceding sentence, the term "net 9.13 income" tax means any tax imposed on or measured by a partnership's net income. 9.14 (i) For the purposes of this subdivision, "another state": 9.15 (1) includes: 9.16 (i) the District of Columbia; and 9.17 (ii) a province or territory of Canada; but 9.18 (2) excludes Puerto Rico and the several territories organized by Congress. 9.19 (j) The limitations on the credit in paragraphs (b), (c), and (d), are imposed on a state 9.20 by state basis. 9.21 (k) For a tax imposed by a province or territory of Canada, the tax for purposes of this 9.22 subdivision is the excess of the tax over the amount of the foreign tax credit allowed under 9.23 section 27 of the Internal Revenue Code. In determining the amount of the foreign tax credit 9.24 allowed, the net income taxes imposed by Canada on the income are deducted first. Any 9.25 remaining amount of the allowable foreign tax credit reduces the provincial or territorial 9.26 tax that qualifies for the credit under this subdivision. 9.27 (l)(1) The credit allowed to a qualifying individual under this section for tax paid to a 9.28 qualifying state equals the credit calculated under paragraphs (b) and (d), plus the amount 9.29 calculated by multiplying: 9.30 (i) the difference between the preliminary credit and the credit calculated under paragraphs 9.31 (b) and (d), by Sec. 9. 9