N.Y. Comp. Codes R. & Regs. tit. 20, § 3-6.6
Tax Law, § 211(4)
In computing combined subsidiary capital, all investments in the stock of subsidiaries included in the combined report and any indebtedness from subsidiaries included in the combined report must be eliminated. As to when combined reports will be permitted or required, see Subpart 6-2 of this Title—Combined Reports.