§ 867. Definitions. For purposes of this article:

(a) City pass-through entity tax. City pass-through entity tax means
the total tax imposed by this article on an electing city partnership or
an electing city resident S corporation.

(b) City pass-through entity taxable income. City pass-through entity
taxable income means:

(1) In the case of an electing city partnership, the sum of (i) all
items of income, gain, loss, or deduction to the extent they are
included in the city taxable income of a partner or member of the
electing city partnership who is a city taxpayer; and (ii) all
pass-through entity taxes including taxes paid under article
twenty-four-A of this chapter to New York, taxes paid under this article
to the city of New York, and taxes paid to other jurisdictions that are
substantially similar to taxes paid under article twenty-four-A of this
chapter, to the extent that, for federal income tax purposes, the taxes
were paid and deducted in the taxable year, and they are included in the
taxable income of the partners subject to tax under article twenty-two
of this chapter for the taxable year.

(2) In the case of an electing city resident S corporation, the sum of
(i) all items of income, gain, loss, or deduction to the extent they
would be included in the city taxable income of a shareholder of the
electing city resident S corporation who is a city taxpayer; and (ii)
all pass-through entity taxes including taxes paid under article
twenty-four-A of this chapter to New York, taxes paid under this article
to the city of New York, and taxes paid to other jurisdictions that are
substantially similar to taxes paid under article twenty-four-A of this
chapter, to the extent that, for federal income tax purposes, the taxes
were paid and deducted in the taxable year, and they are included in the
taxable income of the shareholders subject to tax under article
twenty-two of this chapter for the taxable year.

(c) City resident individual. City resident individual has the same
meaning as that term is defined in subsection (a) of section thirteen
hundred five of this chapter.

(d) City taxable income. City taxable income has the same meaning as
that term is defined in section thirteen hundred three of this chapter.

(e) City taxpayer. A city taxpayer means:

(1) a city resident individual, as defined in subsection (a) of
section thirteen hundred five of this chapter; and

(2) a city resident trust or estate, as defined in subsection (c) of
section thirteen hundred five of this chapter.

(f) Direct share of city pass-through entity tax. Direct share of city
pass-through entity tax means the portion of city pass-through entity
tax calculated on city pass-through entity taxable income of a city
taxpayer who is a partner or member of the electing city partnership or
a city taxpayer who is a shareholder of the electing city resident S
corporation.

(g) Electing city partnership. Electing city partnership means any
eligible partnership that made a valid, timely election pursuant to
section eight hundred sixty-eight of this article.

(h) Electing city resident S corporation. Electing city resident S
corporation means any eligible resident S corporation that made a valid,
timely election pursuant to section eight hundred sixty-eight of this
article.

(i) Eligible city partnership. Eligible city partnership means any
partnership as provided for in section 7701(a)(2) of the Internal
Revenue Code that has a filing requirement under paragraph one of
subsection (c) of section six hundred fifty-eight of this chapter other
than a publicly traded partnership as defined in section 7704 of the
Internal Revenue Code, where at least one partner or member is a city
taxpayer. An eligible city partnership includes any entity, including a
limited liability company, treated as a partnership for federal income
tax purposes that otherwise meets the requirements of this subsection.

(j) Eligible city resident S corporation. Eligible city resident S
corporation means any New York S corporation as defined pursuant to
subdivision one-A of section two hundred eight of this chapter that is
subject to tax under section two hundred nine of this chapter that has
only city taxpayer shareholders. An eligible city resident S corporation
includes any entity, including a limited liability company, treated as
an S corporation for federal income tax purposes that otherwise meets
the requirements of this subsection.

(k) Taxable year. An electing city partnership's or electing city
resident S corporation's taxable year pursuant to this article shall be
the same as the electing city partnership's or electing city resident S
corporation's taxable year for federal income tax purposes.