N.Y. General City Model 772/66 § 4-f: Credit relating to certain sales and compensating use taxes on electricity used in manufacturing, processing or assembling

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

electricity used in manufacturing, processing or assembling. (1) (a) In

addition to any other credit allowed by this part, 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 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-four, less any

credits or refunds of such taxes, with respect to the purchase or use by

the taxpayer of electricity or electric service of whatever nature for

use or consumption directly and exclusively in the production of

tangible personal property for sale by manufacturing, processing or

assembling. Provided, however, the amount of the credit allowed by this

paragraph shall be reduced by the amount of any rebate or rebates

received during the taxpayer's taxable year pursuant to a local law

enacted in accordance with article two-G of the general city law.

(b) In addition to any other credit allowed by this part, 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

subdivision. The amount of such credit shall be equal to the percentage

specified below of 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-eight, less any

credit or refund of such taxes, with respect to the purchase or use by a

non-residential energy user, as such term is defined in article two-G of

the general city law, of electricity or electric service purchased at

retail from the power authority of the state of New York or the port

authority of the state of New York and New Jersey, provided, however,

that no credit shall be allowed with respect to purchases from such port

authority unless it shall be an "eligible vendor of energy services", as

defined in paragraph one of subdivision (c) of section twenty-five-v of

the general city law, and shall have obtained a certification of

eligibility in accordance with subdivision (b) of section twenty-five-w

of such law; during the period commencing July first, nineteen hundred

eighty-eight and ending June thirtieth, nineteen hundred eighty-nine the

credit shall be in an amount equal to twenty-five per centum of such

sales and compensating use taxes imposed; during the period commencing

July first, nineteen hundred eighty-nine and ending June thirtieth,

nineteen hundred ninety the credit shall be in an amount equal to fifty

per centum of such taxes imposed; during the period commencing July

first, nineteen hundred ninety and ending June thirtieth, nineteen

hundred ninety-one the credit shall be in an amount equal to

seventy-five per centum of such taxes imposed; and during the period

commencing July first, nineteen hundred ninety-one and thereafter the

credit shall be in an amount equal to one hundred per centum of such

taxes imposed.

(c) In addition to any other credit allowed by this part, 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

subdivision. The amount of such credit shall be equal to the percentage

specified below of 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-eight, less any

credit or refund of such taxes, with respect to the purchase or use by a

non-residential fuel user of fuel or fuel service except fuel used to

operate motor vehicles; during the period commencing July first,

nineteen hundred eighty-eight and ending June thirtieth, nineteen

hundred eighty-nine the credit shall be in an amount equal to

twenty-five per centum of such sales and compensating use taxes imposed,

during the period commencing July first, nineteen hundred eighty-nine

and ending June thirtieth, nineteen hundred ninety the credit shall be

in an amount equal to fifty per centum of such taxes imposed; during the

period commencing July first, nineteen hundred ninety and ending June

thirtieth, nineteen hundred ninety-one the credit shall be in an amount

equal to seventy-five per centum of such taxes imposed; and during the

period commencing July first, nineteen hundred ninety-one and thereafter

the credit shall be in an amount equal to one hundred per centum of such

taxes imposed. For purposes of this paragraph, the term "non-residential

fuel user" shall mean any non-residential user of fuel, except a

government agency or instrumentality thereof, public benefit

corporation, or any entity that is exempt from the sales tax imposed

pursuant to section eleven hundred seven of the tax law, provided that

the term "non-residential fuel user" shall not include an owner or

operator of residential income producing property, except a hotel.

(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.