1. (a) The investment allocation percentage is computed as follows:

   1. (1) Ascertain the average net value of each stock, bond or other security, other than governmental securities, included in the taxpayer's investment capital, pursuant to section 3-3.4(b) of this Title. The phrase stock, bond or other security as used in this paragraph does not include cash, even if treated as investment capital pursuant to section 3-3.2(a)(1) of this Title.
   2. (2) Multiply the net value of each such stock, bond or other security by its issuer's allocation percentage.
   3. (3) Add all the products determined in paragraph (2) of this subdivision.

   4. (4) Divide the sum obtained in paragraph (3) of this subdivision by the net value of the taxpayer's total investment capital exclusive of cash, even if such cash is treated as investment capital pursuant to section 3-3.2(a)(1) of this Title.

      (b)

   5. (1) The issuer's allocation percentage of an issuer of or obligor on (other than an issuer or obligor subject to tax under article 32 of the Tax Law and other than in the case of an option on a stock or bond index or on a futures contract on such an index) a stock, bond or other security constituting investment capital is computed as follows:

      Issuer or obligor subject to tax under:	Issuer's Allocation Percentage is equal to the:
      Tax Law, § 183 or § 185	percentage of issued capital stock required to be allocated within New York State on its report for the preceding year
      Tax Law, § 186	percentage of gross earnings required to be allocated within New York State on its report for the preceding year
      Tax Law, Article 9-A	percentage of entire capital required to be allocated within New York State on its report for the preceding year (equal to the sum of allocated business capital (see: section 4-9.1 of this Title), allocated investment capital (see: section 4-9.1 of this Title) and allocated subsidiary capital (see: section 4-10.1 of this Title), divided by the sum of business capital, investment capital and subsidiary capital)
      Tax Law, Article 33 (except savings and insurance banks described in Tax Law, § 1500(b))	percentage of gross direct premiums required to be allocated within New York State on its return for the preceding year

   6. (2) In the case of an issuer or obligor subject to tax under article 32 of the Tax Law, the issuer's allocation percentage shall be determined as follows:

      1. (i) In the case of a banking corporation described in section 1452(a)(1)-(8) of the Tax Law which is organized under the Laws of the United States, this State or any other state of the United States, the issuer's allocation percentage shall be its alternative entire net income allocation percentage, as defined in section 1454(c) of the Tax Law, for the preceding year. In the case of such a banking corporation whose alternative entire net income for the preceding year is derived exclusively from business carried on within the state, its issuer's allocation percentage shall be 100 percent.
      2. (ii) In the case of a banking corporation described in section 1452(a)(2) of the Tax Law which is organized under the Laws of a country other than the United States, the issuer's allocation percentage shall be determined by dividing (i) the amount described in section 1454(a)(2)(A)(i) of the Tax Law with respect to such issuer or obligor for the preceding year, by (ii) the gross income of such issuer or obligor from all sources within and without the United States, for such preceding year whether or not included in alternative entire net income for such year.
      3. (iii) In the case of an issuer or obligor described in section 1452(a)(9) or 1452(d)(2) of the Tax Law, the issuer's allocation percentage shall be determined by dividing the portion of the entire capital of the issuer or obligor allocable to New York State for the preceding year by the entire capital, wherever located, of the issuer or obligor for the preceding year.
   7. (3) For purposes of paragraphs (1) and (2) of this subdivision, in determining an issuer's allocation percentage, the term preceding year means the taxable year of the issuer or obligor ending during the taxpayer's immediately prior taxable year. In general, if no taxable year of the issuer or obligor ends within the taxpayer's immediately prior taxable year, then the term preceding year means the latest taxable year of the issuer or obligor ending before the taxpayer's immediately prior taxable year. If an issuer or obligor was not required to file a report or return for the preceding year, the issuer's allocation percentage is zero.
   8. (4) If a report or return for the preceding year is not filed, or if filed does not contain information which would permit the determination of such issuer's allocation percentage, then the issuer's allocation percentage to be used shall, at the discretion of the department, be either (i) the issuer's allocation percentage derived from the most recently filed report or return of the issuer or obligor or (ii) a percentage calculated, by the department, reasonably to indicate the degree of economic presence in New York State of the issuer or obligor during the preceding year.
   9. (5) The issuer's allocation percentage of an option on a stock or bond index, or an option on a futures contract on such an index, will be calculated by the department in such a manner as reasonably to indicate the economic presence in New York State of the issuers of and obligors on the stocks, bonds or other securities included in the computation of the index.

   10. (6) Issuers or obligors.

       1. (i) The issuer of stock is the corporation a portion of the equity of which is represented by such stock. Thus, the issuer of X Corporation stock is X Corporation; the issuer of Federal National Mortgage Association stock is the Federal National Mortgage Association.
       2. (ii) The issuer of, or obligor on, a bond or note is the maker of the instrument. A guarantor of a bond or note is not the issuer or obligor.
       3. (iii) The issuer of, or obligor on, a banker's acceptance is the accepting bank, irrespective of endorsements by other banks. Where banker's acceptances have been acquired in aggregate form, as in round lot trading, each banker's acceptance shall be treated separately for purposes of this paragraph.
       4. (iv) The issuer of, or obligor on, a trade acceptance is the party which has accepted the draft.
       5. (v) The issuer of, or obligor on, an option is the entity which is the issuer of, or obligor on, the item which is the subject of the option unless the subject of the option is a stock or bond index or a futures contract on such an index. For the computation of the issuer's allocation percentage of an option on a stock or bond index or of an option on a futures contract on such an index, see section 4-7.2(b)(5) of this Subpart.
       6. (vi) The issuer of, or obligor on, a stock right or stock warrant is the issuer of, or obligor on, the stock which may be purchased when such right or warrant is exercised.
2. (c) The issuer's allocation percentage with respect to any stock, bond or other security may be obtained from the department upon the written request of any corporation subject to tax under article 9-A. The request must be in duplicate and specify the correct name of each entity whose issuer's allocation percentage is needed to compute the taxpayer's tax.

Tax Law, § 210(3)(b)