§ 617-a. Residents; special provisions. Notwithstanding any other
provisions of this article, the New York adjusted gross income and the
New York taxable income of a resident individual or partner of a
partnership doing an insurance business as a member of the New York
insurance exchange described in section six thousand two hundred one of
the insurance law, shall not include any item of income, gain, loss or
deduction of such business, which is the individual's distributive or
pro rata share for federal income tax purposes or which the individual
is required to take into account separately for federal income tax
purposes. Provided however, such individual's New York adjusted gross
income shall include his distributive or pro rata share of the allocated
entire net income as determined by such business under sections fifteen
hundred three and fifteen hundred four of this chapter. In the event
such allocated entire net income is a loss, there shall not be
subtracted from federal adjusted gross income in computing New York
adjusted gross income such individual's distributive share of such loss.