A corporation may elect to take a credit for dividends paid in lieu of claiming a dividends-received deduction.

Name: A corporation may elect to take a credit for dividends paid in lieu of claiming a dividends-received deduction.
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Corporations do not take a credit for dividends paid; instead, they may be eligible for a dividends-received deduction (DRD) which allows them to reduce their taxable income for certain dividends received from other corporations.

A Corporation May Elect to Take a Credit for Dividends