§ 105-131.8. Tax credits.
§105‑131.8. Tax credits.
(a) For purposes ofG.S. 105‑151 and G.S. 105‑160.4, each resident shareholder isconsidered to have paid a tax imposed on the shareholder in an amount equal tothe shareholder's pro rata share of any net income tax paid by the SCorporation to a state that does not measure the income of S Corporationshareholders by the income of the S Corporation. For purposes of the precedingsentence, the term "net income tax" means any tax imposed on ormeasured by a corporation's net income.
(b) Except as otherwiseprovided in G.S. 105‑160.3, each shareholder of an S Corporation isallowed as a credit against the tax imposed by Parts 2 and 3 of this Article anamount equal to the shareholder's pro rata share of the tax credits for whichthe 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.)