Subtracted from taxable income are:

1. (1) Dividends received from financial institutions subject to taxation under this chapter, to the extent the dividends were included in taxable income as determined under the Internal Revenue Code;
2. (2) Taxes imposed upon the financial institution within the tax year, under the Internal Revenue Code, excluding any taxes imposed under 26 USC § 1374 and 26 USC § 1375;
3. (3) Any interest expense described in §§ 291(e)(1)(B) and 265(b) of the Internal Revenue Code, which interest expense is deductible;

4. (4) Any capital gain from:

   1. (a) Liquidating sales within the twelve-month period beginning on the date on which a financial institution adopts a plan of complete liquidation, if all of the assets of the financial institution are distributed in complete liquidation, less assets retained to meet claims within the twelve-month period; or
   2. (b) The distribution of property in complete liquidation of the financial institution that is subject to federal corporate income taxes pursuant to § 336 of the Internal Revenue Code;
5. (5) For those financial institutions making an election pursuant to 26 USC § 1362(a) of the United States Internal Revenue Code, as defined by § 10-1-47, imputed federal income taxes in an amount equal to the taxes that would have been paid on net income as defined in § 10-43-10.1 had the financial institution continued to file its federal tax return without making an election to file pursuant to 26 USC § 1362(a); and
6. (6) For those financial institutions organized as limited liability companies, imputed federal income taxes in an amount equal to the taxes that would have been paid on net income as defined in § 10-43-10.1 had the financial institution elected to file as a subchapter C corporation under the Internal Revenue Code.

Source: SL 1977, ch 96 , § 4 (2); SL 1978, ch 83 , § 2; SL 1985, ch 84 ; SL 1987, ch 96 , §§ 2-4; SL 1988, ch 104 ; SL 1997, ch 64 , § 2; SL 2004, ch 289 , § 4; SL 2014, ch 60 , § 2, eff. Jan. 1, 2015; SL 2015, ch 62 , § 11; SL 2016, ch 54 , § 11; SL 2016, ch 62 , § 6; SL 2026, ch 51 , § 3.