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

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

(1) in addition to any other credit allowed by this section, 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 equal to one-half 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

eighty-one, less one-half of any credits or refunds of such taxes, with

respect to the purchase or use by the taxpayer of (i) parts with a

useful life of one year or less, tools and supplies 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 for use directly and predominantly in or on telephone

central office equipment or station apparatus or comparable telegraph

equipment where such equipment or apparatus is used directly and

predominantly in receiving at destination or initiating and switching

telephone or telegraph communication, and (ii) the service of

installing, repairing, maintaining or servicing the tangible personal

property described in section four-b of this part, including the parts

with a useful life of one year or less, tools and supplies described in

clause (i) of this subdivision. The foregoing credit shall be reduced

by 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 this section in a prior

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

the tax imposed by section three of this part, and such amount shall be

subtracted in computing entire net income for the taxable year.