Definitions.

(1) The New York items of tax preference of a resident individual, estate or trust are the Federal items of tax preference as defined in the laws of the United States (see section 57 of the Internal Revenue Code), modified in accordance with the provisions of sections 122.3 and 122.6 of this Part and increased by any net operating loss used to reduce the sum of the New York items of tax preference in a previous year (see paragraph [c][2] of this section). The New York items of tax preference of a resident estate or trust include only those items of tax preference which are properly apportioned to such estate or trust in accordance with the laws of the United States.

(2) For purposes of this Part, the New York State personal income tax is the ordinary tax (see section 101.1 of this Title), reduced by the following credits:

(i) the investment credit and the retail enterprise credit (see section 106.1 of this Title);

(ii) the credit for household and dependent care services necessary for gainful employment (see section 106.3 of this Title);

(iii) the credit for sales or compensating use taxes paid upon the purchase of any catalytic, purifying or bleaching chemical agent (see section 106.4 of this Title);

(iv) the real property tax circuit breaker credit (see section 106.5 of this Title);

(v) the mortgage recording tax credit (see section 106.6 of this Title);

(vi) the credit against ordinary tax allowed certain residents for income taxes imposed by another state of the United States, a political subdivision of such state or by the District of Columbia (see sections 120.1 through 120.4 of this Title); and

(vii) the accumulation distribution credit allowable to certain resident beneficiaries of a trust (see Part 121 of this Title).