2021 New York Laws
TAX - Tax
Article 22 - Personal Income Tax
Part 2 - Residents
621 - Credits to Trust Beneficiary Receiving Accumulation Distribution.

§   621.   Credits   to   trust   beneficiary  receiving  accumulation
distribution.  (a) General. A resident beneficiary of a trust whose  New
York  adjusted  gross  income  includes  all  or part of an accumulation
distribution by such trust, as defined in section six hundred sixty-five
of the internal revenue code, including a beneficiary who is required to
make the modification required by paragraph forty of subsection  (b)  of
section  six  hundred twelve of this part, shall be allowed (1) a credit
against  the  tax  otherwise  due  under  this  article  for  all  or  a
proportionate  part  of  any tax paid by the trust under this article or
under former article sixteen of this chapter (as  such  article  was  in
effect on or before December thirtieth, nineteen hundred sixty), for any
preceding  taxable  year  which would not have been payable if the trust
had in fact made distributions to its beneficiaries at the times and  in
the  amounts  specified in section six hundred sixty-six of the internal
revenue code; and (2) a credit against the taxes imposed by this article
for the taxable year for any income tax imposed on  the  trust  for  the
taxable  year  or  any prior taxable year by another state of the United
States, a political subdivision thereof, or the  District  of  Columbia,
upon  income  both  derived  therefrom  and  subject  to  tax under this
article, provided that the amount of the credit  shall  not  exceed  the
percentage  of  the  tax  otherwise due under this article determined by
dividing the portion of the income that is both taxable to the trust  in
such  other  jurisdiction  and  taxable  to  the  beneficiary under this
article by the total amount of the beneficiary's New York income.
  (b) Limitation. The credits under this section shall  not  reduce  the
tax  otherwise  due from the beneficiary under this article to an amount
less than would have been due if the accumulation  distribution  or  his
part thereof were excluded from his New York adjusted gross income.