N.Y. General City Model 772/66 § 4-b: Credit relating to certain sales and compensating use taxes

§ 4-b. Credit relating to certain sales and compensating use taxes.

(1) In addition to the credit allowed by section four-a of such chapter,

a taxpayer shall be allowed a credit against the tax imposed by this

part to be credited or refunded in the manner hereinafter provided in

this section. The amount of such credit shall be the excess of (A) the

amount of sales and compensating use taxes imposed by section eleven

hundred seven of the tax law during the taxpayer's taxable year which

became legally due on or after and was paid on or after July first,

nineteen hundred seventy-seven, less any credits or refunds of such

taxes, with respect to the purchase or use by the taxpayer of machinery

or equipment for use or consumption directly and predominantly in the

production of tangible personal property, gas, electricity,

refrigeration or steam for sale, by manufacturing, processing,

generating, assembling, refining, mining or extracting, or telephone

central office equipment or station apparatus or comparable telegraph

equipment for use directly and predominantly in receiving at destination

or initiating and switching telephone or telegraph communication, but

not including parts with a useful life of one year or less or tools or

supplies used in connection with such machinery, equipment or apparatus

over (B) the amount of any credit for such sales and compensating use

taxes allowed or allowable against the taxes imposed by any local law of

the city imposing a tax on utilities and vendors of utility services,

for any periods embraced within the taxable year of the taxpayer under

this part. (2) The credit allowed under this section for any taxable

year shall be deemed to be an overpayment of tax by the taxpayer to be

credited or refunded, without interest, in accordance with the

provisions of section seventy-seven of this title. (3) Where the

taxpayer receives a refund or credit of any tax imposed under section

eleven hundred seven of the tax law for which the taxpayer had claimed a

credit under the provisions of section four-b of such chapter in a prior

taxable year, the amount of such tax refund or credit shall be added to

the tax imposed by section three of such chapter, and such amount shall

be subtracted in computing entire net income for the taxable year.