2023 North Carolina General Statutes 105-131.8. (Effective for taxable years beginning before January 1, 2022) Tax credits

(a) For purposes of N.C. Gen. Stat. § 105-153.9 and N.C. Gen. Stat. § 105-160.4, each resident shareholder is considered to have paid a tax imposed on the shareholder in an amount equal to the shareholder’s pro rata share of any net income tax paid by the S Corporation to a state that does not measure the income of S Corporation shareholders by the income of the S Corporation. For purposes of the preceding sentence, the term “net income tax” means any tax imposed on or measured by a corporation’s net income.

(b) Except as otherwise provided in N.C. Gen. Stat. § 105-160.3, each shareholder of an S Corporation is allowed as a credit against the tax imposed by Parts 2 and 3 of this Article an amount equal to the shareholder’s pro rata share of the tax credits for which the S Corporation is eligible. ?(1987 (Reg. Sess., 1988), c. 1089, s. 1; 1989, c. 728, ss. 1.33, 1.35; 1991, c. 45, s. 7; 1998-98, s. 8; 2020-58, s. 4.1.)

? 105-131.8.? (Effective for taxable years beginning on or after January 1, 2022) Tax credits.

(a) Except as otherwise provided in N.C. Gen. Stat. § 105-153.9(a)(4) with respect to a taxed S Corporation, for purposes of N.C. Gen. Stat. § 105-153.9 and N.C. Gen. Stat. § 105-160.4, each resident shareholder is considered to have paid a tax imposed on the shareholder in an amount equal to the shareholder’s pro rata share of any net income tax paid by the S Corporation to a state that does not measure the income of S Corporation shareholders by the income of the S Corporation. For purposes of the preceding sentence, the term “net income tax” means any tax imposed on or measured by a corporation’s net income.

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2023 North Carolina General Statutes 105-131.8. (Effective for taxable years beginning before January 1, 2022) Tax credits

David M Edelstein, PA

Gary Kollin, P.A.

Maderal Byrne PLLC