2021 Tennessee Code
Chapter 2 - Income Taxation
§ 67-2-122. Taxes Paid on Out-of-State Shares of Subchapter S Corporation

A resident individual who is a shareholder of a Subchapter S corporation that is incorporated and doing business in another state may deduct from the tax otherwise due under this chapter the tax paid to the other state as a result of such income, distributions or dividends; provided, that there exists a tax credit reciprocity agreement between Tennessee and the other state. In no case shall the credit permitted under this section exceed the tax that would be payable to this state.