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(d) Limitations. The amount of credit against the separate tax on the ordinary income portion (or part thereof) of a lump sum distribution for income taxes imposed by another jurisdiction on such income is subject to the three limitations provided in paragraphs (1), (2) and (3) of this subdivision. Where credit is claimed against such separate tax for income taxes imposed on the ordinary income portion (or part thereof) of a lump sum distribution by two or more taxing jurisdictions as defined in paragraph (2) of subdivision (b) of this section, these three limitations must be applied separately to each jurisdiction for each credit being claimed. See subdivision (e) of this section for the limitations in cases where such credit is claimed for income taxes imposed by both a state and one or more of its political subdivisions on the ordinary income portion (or part thereof) of a lump sum distribution.
(1) The credit allowable under this section cannot exceed the income tax imposed by another jurisdiction (as determined in accordance with the provisions of subdivision [b] of this section) on the ordinary income portion (or part thereof) of a lump sum distribution. If a taxpayer claims a credit against the separate tax in accordance with the provisions of this section for the income tax or taxes (or any portion thereof) imposed by another jurisdiction on the ordinary income portion (or part thereof) of a lump sum distribution, and it is later determined that the amount of such tax or taxes (or the portion for which the credit was claimed) is more or less than the amount of credit claimed with respect to such tax or taxes on the taxpayer's New York State personal or fiduciary income tax return, the taxpayer (or fiduciary in the case of a fiduciary return) must file an amended New York State return at the address indicated on the form and in the instructions.
(2) The credit allowable under this section cannot exceed the amount obtained by multiplying the separate tax due under section 603 of the Tax Law by a percentage determined by dividing the portion of the ordinary income portion of the lump sum distribution taxable both under section 603 of the Tax Law and by such other jurisdiction (the numerator) by the total amount of the ordinary income portion of the lump sum distribution taxable under such section (the denominator).
(3) The credit allowable under this section cannot reduce the separate tax due under section 603 of the Tax Law to an amount less than would have been due if the part of the ordinary income portion of the lump sum distribution taxable both under section 603 of the Tax Law and by such other jurisdiction were excluded from the computation of the separate tax due under such section.