In computing his/her taxable income and his/her income tax for any taxable year, each regular or special member shall include as income or as loss from the operation of a trade or business, the share of the credit notices for productivity or patronage distributed to him/her, or the losses included in his/her internal capital account in the special employee-owned corporation shall be reduced. Provided, That the regular or special members of a special employee-owned corporation shall pay, in lieu of any other taxes imposed by this part, a twenty percent (20%) tax on the amount of any distribution of the credit notices for productivity and patronage that has been capitalized and excluded from the gross income of the special employee-owned corporation, pursuant to the provisions of § 30102(a)(17)(B) of this title, and that has been withheld until the complete disassociation of the regular or special member from the corporation; the regular or special member may opt to include such distribution as part of his/her gross income in the income tax return for the year the distribution is made and pay a tax, in accordance with normal tax rates, whichever is more beneficial to the regular or

ution as part of his/her gross income in the income tax return for the year the distribution is made and pay a tax, in accordance with normal tax rates, whichever is more beneficial to the regular or special member. In the case that at the time of the disassociation of the regular member from the special corporation, the balance in the capital internal account reflects a loss, it shall be treated a regular loss.In the event that the regular member uses the amount received to acquire his/her membership certificate in another special corporation in which he/she is subsequently a regular member, the gain realized, if any, to the extent of the amount used for such purposes, shall be deferred while his/her relationship as regular member in such special corporation continues. Such transfer or reinvestment shall be made within a term not greater than one (1) year from the close of the regular member’s taxable year in which the transfer was made or the distribution effected. In the alternative, the gain realized will be taxed in accordance with the provisions of this section. History —Jan. 31, 2011, No. 1, § 1113.09, retroactive to Jan. 1, 2011.