Amendment H-1199 to HF 352
Relating to an entity-level taxation election for pass-through entities and allowing a partner or shareholder to claim a credit against the individual and corporate income taxes and the franchise tax, and including effective date and retroactive applicability provisions
Adopted · April 13, 2023
Filed April 11, 2023 in the House by
What it changes
- Page 2, by striking lines 2 through 9 and inserting: “
- For tax years beginning on or after January 1, 2022, notwithstanding any other provision of law to the contrary, a taxpayer may elect to be subject to the provisions of this section. This section only applies to tax years for which the limitation on individual deductions applies under section 164(b)(6) of the Internal Revenue Code.”
- Page 3, by striking lines 1 through 4 and inserting “a credit equal to the product of the following amounts:”
- Page 3, before line 5 by inserting: “(1) The ratio of the partner’s or shareholder’s share of the taxpayer’s taxable income over the taxpayer’s total taxable income multiplied by the state tax liability actually paid by the taxpayer. (2) The difference between one hundred percent and the highest individual income tax rate in effect for the tax year.”
- Page 3, by striking lines 8 through 19 and inserting: “c. Any credit in excess of the tax liability is refundable. In lieu of claiming a refund, the partner or shareholder may elect to have the overpayment shown on the partner’s or shareholder’s final, completed return credited to the tax liability for the following tax year.”
- Title page, line 3, by striking “income tax” and inserting “and corporate income taxes and the franchise tax”