Sec. 3-2.1. Computing the tax measured by the entire net income base

Tax Law, § 210(1)(a)

(a) Generally, the entire net income base is the measure of the tax if such calculation results in a greater amount of tax than that computed on the capital base, the minimum taxable income base or the fixed dollar minimum. The rate of the tax measured by the entire net income base is nine percent, except in the case of a small business taxpayer (see section 3-1.2[b] of this Part). The term entire net income base means the portion of the taxpayer's entire net income allocated within New York State, as described in section 4-8.1 of this Title, subject to any modification required by sections 210(3)(d) and 210(3)(e) of the Tax Law. The tax measured by the entire net income base is not applicable to DISCs. (See Subpart 3-9 of this Part-Domestic International Sales Corporation [DISC].)

(b) Entire net income is divided into business income and investment income. The portion of the entire net income allocated to New York State is determined by multiplying business income by a business allocation percentage, multiplying investment income by an investment allocation percentage, and adding the results so obtained. (See Part of 4 of this Title-Allocation.)

(c) Where a group of corporations files a combined report, the combined entire net income base is the measure of the tax if such calculation results in a greater amount of tax than that computed on the combined capital base, the combined minimum taxable income base or the fixed dollar minimum that is attributable to the corporation paying the combined tax. The combined entire net income base is the total of the amounts of the entire net income of each corporation included in the combined report with intercorporate eliminations (see section 3-2.10 of this Part) or the portion of such total allocated within New York State, subject to any modification required by sections 210(3)(d) and 210(3)(e) of the Tax Law.

(d) For rules relating to corporate partners, see Subpart 3-13 of this Part—Corporate Partners.