Definitions

# (a)

# (1)

“Net operating loss” (NOL) means the amount of total business income in a particular taxable year multiplied by the business apportionment factor (BAF) for that taxable year, when such total business income is less than zero. The amount of NOL cannot include any New York investment capital losses, as defined in section 3-7.1 of this Part.

# (2)

In the case of a combined report, the NOL is the combined business loss incurred in a particular taxable year multiplied by the combined BAF for that taxable year. The amount of combined business loss cannot include any New York investment capital losses.

# (3)

In the case of an alien corporation that under any provision of the IRC is not treated as a “domestic corporation” as defined in IRC section 7701, the NOL is calculated using effectively connected income as a starting point for the business income base.

# (b)

A “separate return year” means a taxable year of a corporation for which it files a separate return or for which it filed as a member of a different combined group.