Special Rules Applicable to Pass-through Entities

(a) Pass-through Entities Not Taxed at Entity Level. A credit granted to a partnership, a limited liability company, or other unincorporated business entity taxed as a partnership shall be attributed to the partners, members or owners, on a pro rata basis or pursuant to an alternative method agreed upon by the members, provided that the method would be a permissible method to allocate federal items under Code Section 704. The total aggregate amount of the credit passed through by such entity and claimed by its partners or owners shall not exceed $ 100,000 for any taxable year.

(b) Pass-through Entities Taxed at Entity Level . Any subchapter S corporation or unincorporated business entity subject to the excise imposed pursuant to M.G.L. c. 63 or the tax imposed pursuant to M.G.L. 62 at the entity level in any year may claim the credit allowed under M.G.L. c. 62, § 6(w) or M.G.L. c. 63, § 38II against its entity-level tax. Alternatively, the credit may be passed through to beneficiaries or to shareholders in proportion to their interests in the entity, and shall be taken into account in determining the credit for the taxable year during which the taxable year of the unincorporated business entity ends. These alternatives are mutually exclusive. The total aggregate amount of the credit claimed by the entity or passed through to beneficiaries or shareholders for each qualified renovation expenditure shall not exceed $100,000 for any taxable year.