I have a client who made substantial gifts more than three years prior to his demise. These gifts are added back when calculating the client's federal gross estate (Schedule G Form 706). It is my understanding that gifts made more than three years prior to death are not counted for NYS estate tax purposes, but the NY ET-706 starts with the federal gross estate which includes the gift amounts.

What is the correct way to reduce the NY taxable estate calculation by the amount of the gifts made more than three years prior to death but included in the federal gross estate?