Pass through entity; shareholder, partner, or member
Sec. 7. (a) If a pass through entity does not have state income tax
liability against which the research expense tax credit may be
applied, a shareholder, partner, or member of the pass through entity
is entitled to a research expense tax credit equal to:
(1) the research expense tax credit determined for the pass
through entity for the taxable year; multiplied by
(2) the percentage of the pass through entity's distributive
income to which the shareholder, partner, or member is entitled.
(b) The credit provided under subsection (a) is in addition to a
research expense tax credit to which a shareholder, partner, or
member of a pass through entity is otherwise entitled under this
chapter. However, a pass through entity and a shareholder, partner,
or member of the pass through entity may not claim a credit under
this chapter for the same qualified research expenses.
As added by P.L.57-1990, SEC.6. Amended by P.L.193-2005,
SEC.15.
Last modified: May 28, 2006