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This entry was published on 2021-04-23
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SECTION 863
Pass-through entity tax credit
Tax (TAX) CHAPTER 60, ARTICLE 24-A
§ 863. Pass-through entity tax credit. (a) Personal income tax credit.
(1) A taxpayer subject to tax under article twenty-two of this chapter
that is a direct partner or member in an electing partnership or a
direct shareholder of an electing S corporation subject to tax under
this article shall be allowed a credit against the tax imposed pursuant
to article twenty-two of this chapter, computed pursuant to the
provisions of subsection (kkk) of section six hundred six of this
chapter. An entity that is disregarded for tax purposes will be
disregarded for purposes of determining if a taxpayer is a direct
partner or member of an electing partnership or direct shareholder of an
electing S corporation.

(2) Limitation on credit. No credit shall be allowed to a taxpayer
under paragraph one of this subsection unless the electing partnership
or electing S corporation paid the tax imposed under this article and
provided sufficient information on the pass-through entity tax return as
prescribed by the commissioner to identify that taxpayer. Such
information shall include, but not be limited to, the social security
number or taxpayer identification number of the article twenty-two
taxpayer who will claim the credit (even in the case of a disregarded
entity owned by such taxpayer).

(b) Limitation on credit. The aggregate amount of credits claimed by
all partners, members or shareholders of an electing partnership or
electing S corporation pursuant to subsection (a) of this section shall
not exceed the tax due under subsection (a) of section eight hundred
sixty-two of this article from such electing partnership or electing S
corporation for the taxable year.