27-8-7 - Exemption from chapter 7 income tax; calculation of shareholders' gross income.
§ 27-8-7. Exemption from chapter 7 income tax; calculation of shareholders' gross income.
(1) An S corporation shall not be subject to the tax imposed by Section 27-7-5.
(2) For purposes of Section 27-7-15, each shareholder's pro rata share of the S corporation's income attributable to the state, and each resident shareholder's pro rata share of the S corporation's income not attributable to the state, shall be taken into account by the shareholder in the manner provided in Section 1366 of the Code.
(3) For purposes of determining the amounts taken into account by the shareholders of an S corporation under subsection (2) of this section, the amount of any tax imposed on the S corporation under the Code shall not reduce the S corporation's income attributable to the state and income not attributable to the state.
Sources: Laws, 1993, ch. 456, § 4, eff from and after January 1, 1994.