§ 105-269.15. Income tax credits of partnerships. - North Carolina Statutes

§ 105‑269.15.  Incometax credits of partnerships.

(a)        Qualification. – Apartnership that engages in an activity that is eligible for a tax creditqualifies for the credit as an entity and then passes through to each of itspartners the partner's distributive share of the credit for which thepartnership entity qualifies. Maximum dollar limits and other limitations thatapply in determining the amount of a tax credit available to a taxpayer applyto the same extent in determining the amount of a tax credit for which thepartnership entity qualifies, with one exception. The exception is a limitationthat the tax credit cannot exceed the amount of tax imposed on the taxpayer.

(b)        Allowance of Creditto Partner. – A partner's distributive share of an income tax credit passedthrough by a partnership is allowed to the partner only to the extent thepartner would have qualified for the credit if the partner stood in theposition of the partnership. All limitations on an income tax credit apply toeach partner to the extent of the partner's distributive share of the credit,except that a corporate partner's distributive share of an individual incometax credit is allowed as a corporation income tax credit to the extent thecorporate partner could have qualified for a corporation income tax credit ifit stood in the position of the partnership. All limitations on an income taxcredit apply to the sum of the credit passed through to the partner plus thecredit for which the partner qualifies directly.

(c)        Determination ofDistributive Share. – A partner's distributive share of an income tax creditshall be determined in accordance with sections 702 and 704 of the Code. (1993 (Reg. Sess., 1994), c.674, s. 3; 2001‑335, s. 1.)