§298. Federal taxes on exempt income and limitations on the tax under this Chapter
A. Individuals who exclude from their return exempt income must reduce the amount of the federal income tax deduction by the amount of federal income tax applicable to the exempt income. The amount of federal taxes applicable to exempt income shall be determined, at the option of the taxpayer, by either of the following alternate means:
(1) By dividing the amount of the exempt income by the adjusted gross income, and multiplying that amount by the amount of the federal tax liability.
(2) By use of the following table:
Federal Income Tax Deemed
Applicable to Exempt Income
25% of the amount in excess of $15,000
$8,750 plus 40% of the excess of $50,000
B, C. Repealed by Acts 1983, 2nd Ex.Sess., No. 1, §3, eff. Dec. 19, 1983.
Acts 1980, No. 316, §1. Amended by Acts 1982, No. 788, §1. Acts 1983, 2nd Ex.Sess., No. 1, §3, eff. Dec. 19, 1983.