Sec. 3-2.5. Other items affecting entire net income

(a) Entire net income may be affected by the following:

(1) a net capital loss carried from another taxable year for Federal income tax purposes pursuant to section 1212 of the Internal Revenue Code (for the limitations on a capital loss and the method of computing it, see Subpart 3-7 of this Part);

(2) for taxable years commencing prior to January 1, 1987, a deduction which is allowed, at the election of the taxpayer, for expenditures paid or incurred during the taxable year for the construction, reconstruction, erection or improvement of industrial waste treatment facilities and air pollution control facilities and for taxable years beginning on or after January 1, 1977 and before January 1, 1981 either industrial waste treatment facilities or industrial waste treatment controlled process facilities and either air pollution control facilities or air pollution controlled process facilities, provided such facilities have been certified by the Commissioner of Environmental Conservation or such commissioner's designated representative (see Tax Law, section 208[9][g], and Environmental Conservation Law, sections 17-0707 and 19-0309).