(a) For taxable years beginning in 1987 through taxable years beginning in 1991, an institution may elect to take a credit for taxes based on or measured by income or taxes imposed in lieu thereof paid to other states against its tax liability determined under this article.(b) The amount of the credit shall be determined as follows: For each state in which the institution is subject to tax, the amount of the credit shall be the lesser of:
(1) the applicable tax actually paid to such state; or(2) the total tax due under this article without regard to apportionment multiplied by a fraction the numerator of which is the amount of the institution's income (or other applicable basis of taxation) subject to tax by such state and the denominator of which is the amount of the institution's entire income (or other applicable basis of taxation) to which a system of apportionment or allocation is applied by such state; except that, if a state does not apply a system of allocation or apportionment, the numerator of such fraction is the amount of the institution's income (or other applicable basis of taxation) which would be subject to taxation in such state if the apportionment fraction were computed in accordance with the provisions of this article.(c) If exercised, this election shall be in lieu of any other apportionment to which the institution would otherwise be entitled.1971, March 4, P.L. 6, No. 2, art. XV, § 1502.2, added 1988, Oct. 14, P.L. 737, No. 106, § 4, imd. effective.