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(1) Five percent of the amount of acquisition-related interest (as defined in section 612[t][3] of the Tax Law and section 112.13 of this Part), to the extent deducted in the computation of New York adjusted gross income, without regard to this subdivision, where there has been a stock or asset acquisition, as defined in section 612(t) of the Tax Law, (see section 112.13 of this Part) during the taxable year or within the three immediately preceding taxable years, subject to the limitation described in paragraph (2) of this subdivision.
(2) Limitation. The amount of the addback provided in paragraph (1) of this subdivision shall be limited to the product of subparagraphs (i) and (ii) of this paragraph:
(i) taxpayer's acquisition-related interest (as defined in section 612[t][3] of the Tax Law and section 112.13 of this Part) to the extent so deducted; multiplied by
(ii) a fraction:
(a) The numerator of which is the sum of:
(1) in the case of section 112.13(a)(1) of this Part, the taxpayer's, partnership's, estate's, trust's or S corporation's (acquiror's) total cost of any target corporation as described in section 208(15) of the Tax Law (see section 1-2.12 of this Title), or corporations acquired in a corporate acquisition (as defined in section 208[15] of the Tax Law) during the acquiror's taxable year or in the three immediately preceding taxable years; and
(2) in the case of section 112.13(a)(2) of this Part, the value of the assets acquired during the acquiror's taxable year or in the three immediately preceding taxable years, but only if such acquisition took place on or after April 19, 1989.
(b) For purposes of this subparagraph, there shall be included only the cost of target corporations acquired in a taxable year with respect to which none of the conditions set forth in section 112.13(b) of this Part are satisfied and the value of assets acquired in an asset acquisition (see section 112.13[a] of this Part) taking place during such a year.
(c) The denominator of such fraction is the taxpayer's average total debt for the taxable year. (See section 612[b][30]) of the Tax Law.)
(i) taxpayer's acquisition-related interest (as defined in section 612[t][3] of the Tax Law and section 112.13 of this Part) to the extent so deducted; multiplied by
(ii) a fraction:
(a) The numerator of which is the sum of:
(1) in the case of section 112.13(a)(1) of this Part, the taxpayer's, partnership's, estate's, trust's or S corporation's (acquiror's) total cost of any target corporation as described in section 208(15) of the Tax Law (see section 1-2.12 of this Title), or corporations acquired in a corporate acquisition (as defined in section 208[15] of the Tax Law) during the acquiror's taxable year or in the three immediately preceding taxable years; and
(2) in the case of section 112.13(a)(2) of this Part, the value of the assets acquired during the acquiror's taxable year or in the three immediately preceding taxable years, but only if such acquisition took place on or after April 19, 1989.
(b) For purposes of this subparagraph, there shall be included only the cost of target corporations acquired in a taxable year with respect to which none of the conditions set forth in section 112.13(b) of this Part are satisfied and the value of assets acquired in an asset acquisition (see section 112.13[a] of this Part) taking place during such a year.
(c) The denominator of such fraction is the taxpayer's average total debt for the taxable year. (See section 612[b][30]) of the Tax Law.)
(a) The numerator of which is the sum of:
(1) in the case of section 112.13(a)(1) of this Part, the taxpayer's, partnership's, estate's, trust's or S corporation's (acquiror's) total cost of any target corporation as described in section 208(15) of the Tax Law (see section 1-2.12 of this Title), or corporations acquired in a corporate acquisition (as defined in section 208[15] of the Tax Law) during the acquiror's taxable year or in the three immediately preceding taxable years; and
(2) in the case of section 112.13(a)(2) of this Part, the value of the assets acquired during the acquiror's taxable year or in the three immediately preceding taxable years, but only if such acquisition took place on or after April 19, 1989.
(1) in the case of section 112.13(a)(1) of this Part, the taxpayer's, partnership's, estate's, trust's or S corporation's (acquiror's) total cost of any target corporation as described in section 208(15) of the Tax Law (see section 1-2.12 of this Title), or corporations acquired in a corporate acquisition (as defined in section 208[15] of the Tax Law) during the acquiror's taxable year or in the three immediately preceding taxable years; and
(2) in the case of section 112.13(a)(2) of this Part, the value of the assets acquired during the acquiror's taxable year or in the three immediately preceding taxable years, but only if such acquisition took place on or after April 19, 1989.
(b) For purposes of this subparagraph, there shall be included only the cost of target corporations acquired in a taxable year with respect to which none of the conditions set forth in section 112.13(b) of this Part are satisfied and the value of assets acquired in an asset acquisition (see section 112.13[a] of this Part) taking place during such a year.
(c) The denominator of such fraction is the taxpayer's average total debt for the taxable year. (See section 612[b][30]) of the Tax Law.)