Section 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 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 one-C.
    * NB Applies to taxable years beginning after December 31, 1987
    (b) 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.
    * NB Applies to taxable years beginning after December 31, 1987
    (c) 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.
    (d) S corporation shareholders. In the case of a shareholder of  an  S
  corporation,  the  term  "income  tax" in subsection (a) of this section
  shall  not  include  any  such  tax  imposed  upon  or  payable  by  the
  corporation,  but  shall include any such tax with respect to the income
  of the corporation imposed upon or payable by the  shareholder,  without
  regard  to whether an election independent of the federal S election was
  required to effect such imposition upon the shareholder.