43-1089.04 - Pro rata credit for business contributions by S corporation school tuition organizations; definition
43-1089.04. Pro rata credit for business contributions by S corporation school tuition organizations; definition
A. A credit is allowed against the taxes imposed by this title for the pro rata amount of contributions made by an S corporation pursuant to section 43-1183, subsection F or section 43-1184, subsection F, or both. To qualify for the credit:
1. The aggregate contribution in the taxable year must be at least five thousand dollars.
2. All other requirements of section 43-1183 or 43-1184 and the applicable sections of chapter 15 of this title must be met.
B. Co-owners of the S corporation may each claim the pro rata share of the credit allowed under sections 43-1183 and 43-1184 based on the taxpayer's ownership interest. The total of the credits allowed all the owners of the corporation may not exceed the amount that would have been allowed a sole owner of the corporation.
C. If the allowable tax credit exceeds the taxes otherwise due under this title on the claimant's income, or if there are no taxes due under this title, the taxpayer may carry the amount of the claim not used to offset the taxes under this title forward for not more than five consecutive taxable years' income tax liability.
D. The credit allowed by this section is in lieu of any deduction pursuant to section 170 of the internal revenue code and taken for state tax purposes.
E. The tax credit is not allowed if the S corporation or a shareholder designates the contribution to the school tuition organization for the direct benefit of any dependent of a shareholder of the corporation claiming a credit under this section or if the corporation or a shareholder designates a student beneficiary as a condition of the contribution to the school tuition organization. The tax credit is not allowed if the corporation or a shareholder, with the intent to benefit a shareholder's dependent, agrees with one or more other taxpayers to designate reciprocal contributions to school tuition organizations for the direct benefit of the other taxpayer's dependent.
F. For the purposes of this section, "S corporation" or "corporation" means an S corporation as defined in section 1361 of the internal revenue code.