Sec. 3-1.1. General

Tax Law, §§ 208(9), 210(1)

For purposes of computing the tax imposed by article 9-A of the Tax Law, every corporation is treated as a holding corporation to the extent that it holds investments in subsidiaries, as an investment trust to the extent that it holds other securities, and as a business corporation to the extent that it is engaged in ordinary business. In the case of every such corporation, article 9-A of the Tax Law defines and treats differently:

(a) subsidiary capital (capital invested in subsidiaries) and the income therefrom;

(b) investment capital and investment income (see section 3-3.2 of this Part—Definition of investment capital and section 4-8.3 of this Title—Definition of investment income); and

(c) business capital and business income (all capital other than subsidiary capital and investment capital, and all income other than investment income and income from subsidiary capital).