Section 11-643.8. Credit relating to certain distributions from partnerships

(a)  If a banking corporation is a partner in an unincorporated business
  taxable under chapter five of this title, and is required to include  in
  entire  net  income  its  distributive  share  of income, gain, loss and
  deductions  of,  or  guaranteed  payments  from,   such   unincorporated
  business, such banking corporation shall be allowed a credit against the
  tax  imposed  by this part equal to the lesser of the amounts determined
  in paragraphs one and two of this subdivision:
    (1) The amount determined in this paragraph is the product of (A)  the
  sum  of  (i)  the  tax  imposed  by  chapter  five  of this title on the
  unincorporated business for its taxable year ending within or  with  the
  taxable  year  of the banking corporation and paid by the unincorporated
  business and (ii) the amount of any  credit  or  credits  taken  by  the
  unincorporated  business  under section 11-503 of this title (except the
  credit allowed by subdivision (b) of such section) for its taxable  year
  ending  within  or  with the taxable year of the banking corporation, to
  the  extent  that  such  credits  do  not  reduce  such   unincorporated
  business's tax below zero, and (B) a fraction, the numerator of which is
  the net total of the banking corporation's distributive share of income,
  gain,  loss  and  deductions  of,  and  guaranteed  payments  from,  the
  unincorporated business for such taxable year  and  the  denominator  of
  which  is  the sum, for such taxable year, of the net total distributive
  shares of income, gain, loss and deductions of, and guaranteed  payments
  to,  all  partners of the unincorporated business for whom or which such
  net total (as separately determined for each partner)  is  greater  than
  zero.
    (2)  The amount determined in this paragraph is the product of (A) the
  excess of (i) the basic tax computed  pursuant  to  subdivision  (a)  of
  section  11-643.5 of this part, without allowance of any credits allowed
  by this part, over (ii) the basic tax so computed, determined as if  the
  banking  corporation  had  no  such  distributive  share  or  guaranteed
  payments  with  respect  to  the  unincorporated  business,  and  (B)  a
  fraction, the numerator of which is four and the denominator of which is
  nine,  provided,  however,  that the amounts computed in clauses (i) and
  (ii)  of  this  paragraph  shall  be   computed   with   the   following
  modifications:
    (I)  if,  prior  to  taking  into  account  any  distributive share or
  guaranteed payments from any unincorporated  business,  the  entire  net
  income of the partner is less than zero, such entire net income shall be
  treated as zero; and
    (II)  if  such partner's net total distributive share of income, gain,
  loss and deductions of, and guaranteed payments from any  unincorporated
  business is less than zero, such net total shall be treated as zero.
    The amount determined in this paragraph shall not be less than zero.
    (b) (1) Notwithstanding anything to the contrary in subdivision (a) of
  this  section,  in  the  case  of a banking corporation that, before the
  application of this section or any other credit allowed by this part, is
  liable for the basic tax  computed  under  subdivision  (a)  of  section
  11-643.5  of this part, the credit or the sum of the credits that may be
  taken by such banking corporation for a taxable year under this  section
  with  respect to an unincorporated business or unincorporated businesses
  in which it is a partner shall not exceed the tax so  computed,  without
  allowance  of any credits allowed by this part, multiplied by a fraction
  the numerator of which is four and the denominator of which is nine.  If
  the  credit  allowed  under  this subdivision or the sum of such credits
  exceeds the product of such tax and such fraction,  the  amount  of  the
  excess  may  be  carried  forward,  in  order,  to  each  of  the  seven
  immediately succeeding taxable years and, to the extent  not  previously

  taken,  shall  be allowed as a credit in each of such years. In applying
  the provisions of the preceding sentence, the credit determined for  the
  taxable year under subdivision (a) of this section shall be taken before
  taking any credit carryforward pursuant to this paragraph and the credit
  carryforward  attributable  to  the earliest taxable year shall be taken
  before taking a credit carryforward attributable to a subsequent taxable
  year.
    (2) Notwithstanding anything to the contrary  in  subdivision  (a)  of
  this  section,  in  the  case  of a banking corporation that, before the
  application of this section or any other credit allowed by this part, is
  liable for the alternative minimum tax on alternative entire net  income
  under  paragraph  three  of  subdivision (b) of section 11-643.5 of this
  part, the maximum credit that may be taken in any taxable  year  is  the
  amount  that  will  reduce the tax so computed, without allowance of any
  credits allowed by this part, to zero.  For purposes of  this  paragraph
  each  dollar  of  credit  shall  be  applied so as to reduce such tax by
  seventy-five cents. If the amount of credit allowed under  this  section
  or  the sum of such credits exceeds the amount that may be taken against
  such tax, the amount of the excess may be carried forward, in order,  to
  each  of  the  seven  immediately  succeeding  taxable years and, to the
  extent not previously taken, shall be allowed as a  credit  in  each  of
  such  years.  In  applying the provisions of the preceding sentence, the
  credit determined for the taxable year under  subdivision  (a)  of  this
  section shall be taken before taking any credit carryforward pursuant to
  this  subdivision  and  the  credit  carryforward  attributable  to  the
  earliest taxable year shall be taken before taking a credit carryforward
  attributable to a subsequent taxable year.
    (3) No credit under this section may be taken in a taxable year  by  a
  taxpayer  that,  in  the absence of such credit, would be liable for the
  tax computed on the basis of taxable assets under paragraph one, the tax
  computed on the basis of issued capital stock under paragraph two or the
  fixed-dollar minimum tax under paragraph  four  of  subdivision  (b)  of
  section 11-643.5 of this part.
    (c)  For  banking  corporations that file a report on a combined basis
  pursuant to subdivision (f) of section 11-646 of this part,  the  credit
  allowed  by this section shall be computed as if the combined group were
  the partner in each  unincorporated  business  from  which  any  of  the
  members  of  such group had a distributive share or guaranteed payments,
  provided, however, if more than one member of the combined  group  is  a
  partner  in  the  same  unincorporated  business,  for  purposes  of the
  calculation required  in  paragraph  one  of  subdivision  (a)  of  this
  section,  the numerator of the fraction described in subparagraph (B) of
  such paragraph one shall be the sum of the net total distributive shares
  of income, gain, loss and deductions of, and guaranteed  payments  from,
  the unincorporated business of all of the partners of the unincorporated
  business  within  the  combined  group  for  which  such  net  total (as
  separately determined for each partner) is greater than  zero,  and  the
  denominator  of  such  fraction  shall  be  the  sum  of  the  net total
  distributive shares  of  income,  gain,  loss  and  deductions  of,  and
  guaranteed payments from, the unincorporated business of all partners in
  the  unincorporated  business  for  whom  or  which  such  net total (as
  separately determined for each partner) is greater than zero.
    (d) The credit allowed by this section  shall  not  be  allowed  to  a
  partner  in  an  unincorporated business with respect to any tax paid by
  the unincorporated business under chapter five of  this  title  for  any
  taxable year beginning before July first, nineteen hundred ninety-four.
    (e)  Notwithstanding  any  other  provisions  of this part, the credit
  allowable under this section shall be taken prior to the taking  of  any

  other credit allowed by this part.  Notwithstanding any other provisions
  of this part, the application of this section shall not change the basis
  on  which the taxpayer's tax is computed under subdivision (a) or (b) of
  section 11-643.5 of this part.