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This entry was published on 2014-09-22
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SECTION 620-A
Credit against separate tax
Tax (TAX) CHAPTER 60, ARTICLE 22, PART 2
§ 620-A. Credit against separate tax. (a) General. A resident shall be
allowed a credit against the separate tax otherwise due under section
six hundred three for any income tax imposed for the taxable year by
another state of the United States, a political subdivision of such
state, the District of Columbia or a province of Canada, upon the
ordinary income portion (or part thereof) of a lump sum distribution
both derived therefrom and subject to tax under such section. Where such
ordinary income portion (or part thereof) of a lump sum distribution is
not subject to separate income taxation by such other state or its
political subdivision or the District of Columbia or a province of
Canada, but is included as income under an income tax imposed by such
jurisdiction, the portion of the tax on such income which constitutes
the income tax imposed on such ordinary income portion (or part thereof)
of a lump sum distribution shall be an amount bearing the same ratio to
the entire tax paid to such other jurisdiction as the amount of the
ordinary income portion (or part thereof) of a lump sum distribution
included in the income subject to such tax bears to all income subject
to such tax.

(b) Limitations. (1) The credit under this section shall not exceed
the percentage of the tax otherwise due under section six hundred three
determined by dividing the portion of the taxpayer's ordinary income
portion of a lump sum distribution taxable both under section six
hundred three and by such other jurisdiction by the total amount of the
taxpayer's ordinary income portion of a lump sum distribution taxable
under section six hundred three.

(2) The credit under this section shall not reduce the tax otherwise
due under section six hundred three to an amount less than would have
been due if the portion of the ordinary income portion of a lump sum
distribution taxable both under section six hundred three and by such
other jurisdiction were excluded from the computation of the separate
tax imposed under section six hundred three.

(3) In the case of a taxpayer who elects to claim the foreign tax
credit for federal income tax purposes, the credit under this section
for income tax imposed by a province of Canada shall be allowed for that
portion of the provincial tax not claimed for federal purposes for the
taxable year or a preceding taxable year, provided however, to the
extent the provincial tax is claimed for federal purposes for a
succeeding taxable year, the credit under this section must be added
back in such succeeding taxable year. The provincial tax shall be deemed
to be claimed last for federal income tax purposes and for purposes of
this subsection.