Section 641. New York minimum taxable income of nonresidents

(a) The New
  York minimum taxable income of a nonresident individual, estate or trust
  shall be the sum of  the  items  of  tax  preference,  as  described  in
  subsection  (b)  of  this  section,  reduced (but not below zero) by the
  aggregate of the following:
    (1) the applicable specific deduction described in subsection  (c)  of
  this section;
    ** (2) the tax on New York taxable income determined under section six
  hundred  one  for  the  taxable  year, reduced by the sum of the credits
  allowable under subsections (a), (c), (f), (h), (i), (j), (k) and (l) of
  section six hundred six and section six hundred forty; and
 
  ** NB Applies to taxable years beginning after 1986
 
  (3) to the extent that the sum of the items of  tax  preference  exceeds
  the  applicable  specific  deduction described in subsection (c) of this
  section plus the tax described in paragraph two above, the amount of any
  net operating loss of the taxpayer, determined as provided in  paragraph
  three of subsection (b) of section six hundred thirty-two, which remains
  as  a net operating loss carryover to a succeeding taxable year. In such
  case, however, the amount of such net operating loss used to reduce  the
  sum  of  the  items of tax preference shall be treated as an item of tax
  preference in the next succeeding taxable years, in order  of  time,  in
  which such net operating loss carryover reduces federal taxable income.
    (b)  For  purposes of this article, the term "items of tax preference"
  shall mean the items of tax preference, as defined in subsection (b)  of
  section  six hundred twenty-two, derived from or connected with New York
  sources, as such term is  defined  in  subsection  (b)  of  section  six
  hundred thirty-two, of a nonresident individual, estate or trust, as the
  case may be, for the taxable year.
    (c) Specific deduction.
    (1)  Nonresident  individuals--An amount which bears the same ratio to
  five thousand dollars, or twenty-five hundred dollars in the case  of  a
  married  individual  filing  a  separate  return,  as  his  items of tax
  preference computed under subsection (b) of this  section  bear  to  his
  total  items  of  tax preference computed as if he were a resident under
  subsection (b) of section six hundred twenty-two for the  taxable  year.
  Provided,  however,  the amount allowable under this paragraph shall not
  exceed five thousand dollars, or twenty-five hundred dollars in the case
  of a married individual filing a separate return.
    (2) Nonresident estates or trusts.--An  amount,  not  to  exceed  five
  thousand  dollars,  which  bears  the  same  proportion to five thousand
  dollars as its items of tax preference computed under subsection (b)  of
  this  section  bear  to  the  sum of the items of tax preference of such
  estate or trust computed as if it were a resident estate or trust  under
  subsection  (b)  of  section six hundred twenty-two for the taxable year
  but without regard to any apportionment of such items of tax  preference
  between  such  estate or trust and the beneficiaries thereof as provided
  in such subsection (b) of section six hundred twenty-two.
    ** (d) Disallowance of credits.--The credits against  tax  under  this
  article,  except  for  the  credit  under  subsection (e) of section six
  hundred six and under section six hundred  seventy-three  shall  not  be
  allowed against the tax imposed by section six hundred two.
    ** NB Applies to taxable years beginning after 1986
    * NB Effective until 1988