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SECTION 620
Credit for income tax of another state
Tax (TAX) CHAPTER 60, ARTICLE 22, PART 2
§ 620. Credit for income tax of another state. (a) General. A resident
shall be allowed a credit against the tax otherwise due under this
article for any income tax imposed on such individual for the taxable
year by another state of the United States, a political subdivision of
such state, the District of Columbia or a province of Canada, upon
income both derived therefrom and subject to tax under this article. The
term "income tax imposed" in the previous sentence shall not include the
portion of such tax (determined in the manner provided for in section
six hundred twenty-A) which is imposed upon the ordinary income portion
(or part thereof) of a lump sum distribution which is subject to the
separate tax imposed by section six hundred three.

(b) Pass-through entity taxes. (1) A resident shall be allowed a
credit against the tax otherwise due pursuant to this article for any
pass-through entity tax substantially similar to the tax imposed
pursuant to article twenty-four-A of this chapter imposed on the income
of a partnership or S corporation of which the resident is a partner,
member or shareholder for the taxable year by another state of the
United States, a political subdivision of such state, or the District of
Columbia upon income both derived therefrom and subject to tax under
this article.

(2) Such credit shall be equal to the taxpayer's direct share of the
pass-through entity tax paid by the electing partnership or electing S
corporation to such other state, political subdivision of such other
state or the District of Columbia.

(3) However, such credit will be allowed on tax paid only if:

(A) the state of the United States, political subdivision of such
state, or the District of Columbia imposing such tax also imposes an
income tax substantially similar to the tax imposed under this article;
and

(B) in the case of taxes paid by an S corporation, such S corporation
was treated as a New York S corporation.

(c) Limitations. (1) The credit under this section shall not exceed
the percentage of the tax otherwise due under this article determined by
dividing the portion of the taxpayer's New York income subject to
taxation by such other jurisdiction by the total amount of the
taxpayer's New York income.

(2) The credit under this section shall not reduce the tax otherwise
due under this article to an amount less than would have been due if the
income subject to taxation by such other jurisdiction were excluded from
the taxpayer's New York income.

(3) In the case of a taxpayer who elects to claim the foreign tax
credit for federal income tax purposes, the credit under this section
for income tax imposed by a province of Canada shall be allowed for that
portion of the provincial tax not claimed for federal purposes for the
taxable year or a preceding taxable year, provided however, to the
extent the provincial tax is claimed for federal purposes for a
succeeding taxable year, the credit under this section must be added
back in such succeeding taxable year. The provincial tax shall be deemed
to be claimed last for federal income tax purposes and for purposes of
this subsection.

(d) Definition. For purposes of this section New York income means:

(1) the New York adjusted gross income of an individual, or

(2) the amount of the income of an estate or trust, determined as if
the estate or trust were an individual computing his New York adjusted
gross income under section six hundred twelve.