HRS § 235-129 - Tax credits

(a) For purposes of section 235‑55, each resident shareholder shall be considered to have paid a tax imposed on the shareholder in an amount equal to the shareholder's pro rata share of any net income tax paid by the S corporation to a state that does not measure the income of S corporation shareholders by the income of the S corporation. For purposes of the preceding sentence, the term "net income tax" means any tax imposed on or measured by a corporation's net income. (b) Each shareholder of an S corporation shall be allowed a credit against the tax imposed by section 235-51 in an amount equal to the shareholder's pro rata share of the tax credit earned by the S corporation in this State. [L 1990, c 16, pt of §1; am L 1992, c 105, §1; am L 2007, c 151, §2] Note The 2007 amendment applies to taxable years beginning after December 31, 2006. L 2007, c 151, §4.