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26.372.15 101st Legislative Session 18 South Dakota Legislature Senate Bill 18 Introduced by:
26.372.16 101st Legislative Session 18 South Dakota Legislature Senate Bill 18 ENROLLED A N ACT ENTITLED An Act to repeal income modifications for the bank franchise tax pertaining to bad debts.
The Chair of the Committee on Taxation at the request of the Department of Revenue An Act to repeal income modifications for the bank franchise tax pertaining to bad debts.
B E IT ENACTED BY THE LEGISLATURE OF THE S TATE OF S OUTH D AKOTA :
B E IT ENACTED BY THE L EGISLATURE OF THE STATE OF SOUTH D AKOTA :
This section applies to §§ 10-4-9.1, 10-4-9.2, 10-4-9.3, 10-4-9.4, 10-4-39, 10- 6-157, and 10-43-10.1, and subdivisions 10-6A-1(7), 10-6B-1(5), 10-18A-1(6), 10-43- 10.3(6) 10-43-10.3(5), and 10-45A-1(5).
This section applies to §§ 10-4-9.1, 10-4-9.2, 10-4-9.3, 10-4-9.4, 10-4-39, 10- 6-157, and 10-43-10.1, and subdivisions 10-6A-1(7), 10-6B-1(5), 10-18A-1(6), 10-43- 10.3(5), and 10-45A-1(5).
(2) All income taxes paid or accrued, as the case may be applicable, during the tax year under the provisions of chapter 10-43 this chapter or under the provisions of any income tax, or franchise or privilege taxes measured by income levied by any other state or political subdivision to the extent that such the taxes were deducted to determine federal taxable income;
(2) All income taxes paid or accrued, as applicable, during the tax year under the provisions of this chapter or under the provisions of any income tax, or franchise or privilege taxes measured by income levied by any other state or political subdivision to the extent that the taxes were deducted to determine federal taxable income;
(3) Bad debt deductions in excess of credits actually ascertained to be worthless and charged off within the tax year;
(3) Any amount received as a refund of federal income taxes during the tax year if that amount was previously deducted in determining net income;
(4) Any amount subsequently received on account of a bad debt previously charged off as a deduction for tax purposes;
(4) Dividends received from other corporations to the extent that the dividends have been deducted from net income as determined under the Internal Revenue Code;
(5) Any amount received as a refund of federal income taxes during the tax year if that amount was previously deducted in determining net income;
and (5) Any capital loss from:
Overstrikes indicate deleted language.
26.372.16 2 18 (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 the assets of the financial institution are distributed in complete liquidation, less assets retained to meet claims within the twelve-month period;
26.372.15 2 18 (6)(4) Dividends received from other corporations to the extent that such the dividends have been deducted from net income as determined under the Internal Revenue Code;
or (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.
and (7)(5) Any capital loss from liquidating :
(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 from the ;
or (b) The distribution of property in complete liquidation of the financial institution which that is subject to federal corporate income taxes pursuant to § 336 of the Internal Revenue Code.
(1) Dividends received from financial institutions subject to taxation under this chapter, to the extent such the dividends were included in taxable income as determined under the Internal Revenue Code;
(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;
(3) Any interest expense described in §§ 291(e)(1)(B) and 265(b) of the Internal Revenue Code, which interest expense shall be is deductible;
(3) Any interest expense described in §§ 291(e)(1)(B) and 265(b) of the Internal Revenue Code, which interest expense is deductible;
(4) Any capital gain from liquidating :
(4) Any capital gain from:
(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 from the ;
(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 (b) The distribution of property in complete liquidation of the financial institution which that is subject to federal corporate income taxes pursuant to § 336 of the Internal Revenue Code;
or (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) Any adjustment to taxable income due to a change in the method used to compute the federal bad debt deduction where the adjustment has already been included in taxable income for purposes of the tax imposed by this chapter;
(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);
Overstrikes indicate deleted language.
and (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 SB18 ENROLLED 26.372.16 3 18 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.
26.372.15 3 18 (6) 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);
SB18 ENROLLED 26.372.16 4 18 An Act to repeal income modifications for the bank franchise tax pertaining to bad debts.
and (7)(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.
Received at this Executive Office I certify that the attached Act originated in this _____ day of _____________, the:
Underscores indicate new language.
at ____________M.
Overstrikes indicate deleted language.
Senate as Bill No.
18 By Secretary of the Senate for the Governor The attached Act is hereby approved this ________ day of President of the Senate ______________, A.D., 2026 Attest:
Governor Secretary of the Senate STATE OF SOUTH DAKOTA, ss.
Office of the Secretary of State Speaker of the House Filed ____________, 2026 Attest:
at _________ o'clock __M.
Chief Clerk of the House Secretary of State Senate Bill No.
18 By File No.
____ Asst.
Secretary of State Chapter No.
______ SB18 ENROLLED
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