(1)Interest or dividend income on obligations or securities of any authority, commission or instrumentality of the United States, to the extent includible in gross income for Federal income tax purposes but exempt from state income taxes under#
(1) Interest or dividend income on obligations or securities of any authority, commission or instrumentality of the United States, to the extent includible in gross income for Federal income tax purposes but exempt from state income taxes under the laws of the United States. (See section 612[c][2] of the Tax Law.)
(2)The provisions of paragraph (a)(2) of this section relating to amounts received as dividends from a regulated investment company shall apply for purposes of paragraph (1) of this subdivision.#
(2) The provisions of paragraph (a)(2) of this section relating to amounts received as dividends from a regulated investment company shall apply for purposes of paragraph (1) of this subdivision. Interest income on obligations of the Home Owners' Loan Corporation is subtracted from Federal adjusted gross income to the extent it is includible in gross income for Federal income tax purposes as a modification item in determining the New York adjusted gross income of a resident individual, since an act of Congress exempts this interest income from state income taxation but not from Federal income taxation.