30545

To the extent that the bylaws of the special corporation authorize payment of interest over unpaid credit notices for productivity and patronage or over other unpaid credited distributions to regular and special members, as reflected in the individual internal capital accounts of each member, the interest thus paid shall be exempt from the payment of income tax under this part. This treatment is not extensive to interest paid to corporate members. History —Jan. 31, 2011, No. 1, § 1113.15, retroactive to Jan. 1, 2011.