1. (a) The deduction allowed for compensation from self employment income retained in the business enterprise, as provided in RSA 77-E:3, I, shall be deducted from the compensation element of the tax base to arrive at the compensation amount subject to the apportionment factor.
2. (b) The deduction allowed for dividends received from members of an affiliated group of business enterprises as provided in RSA 77-E:3, II and III, shall be deducted from the dividend element of the tax base to arrive at the dividend amount subject to the apportionment factor.

3. (c) In instances where a business enterprise, entitled to a dividend received deduction, has not paid dividends to its owners, the business enterprise shall:

   1. (1) Apportion the dividend received deduction using the dividends apportionment factor determined in accordance with Rev 2404.06 and Rev 2404.061; and

   2. (2) Use such apportioned amount as an offset to either:

      1. a. The taxable compensation portion of the tax base; or
      2. b. The taxable interest portion of the tax base.

Source. INTERIM #5708, eff 9-23-93, EXPIRED: 1-21-94; ss by #5774, eff 1-21-94; ss by #7178, eff 12-23-99, EXPIRED: 12-23-07 New. #9065, eff 1-10-08 (from Rev 2403.04); ss by #11032, eff 1-29-16; ss by #13177, eff 3-6-21