N.Y. Tax Law § 1115: Exemptions from sales and use taxes

§ 1115. Exemptions from sales and use taxes. (a) Receipts from the

following shall be exempt from the tax on retail sales imposed under

subdivision (a) of section eleven hundred five and the compensating use

tax imposed under section eleven hundred ten:

(1) (A) Food, food products, beverages, dietary foods and health

supplements, sold for human consumption but not including (i) candy and

confectionery, (ii) fruit drinks which contain less than seventy percent

of natural fruit juice, (iii) soft drinks, sodas and beverages such as

are ordinarily dispensed at soda fountains or in connection therewith

(other than coffee, tea and cocoa) and (iv) beer, wine or other

alcoholic beverages, all of which shall be subject to the retail sales

and compensating use taxes, whether or not the item is sold in liquid

form. Nothing in this subparagraph shall be construed as exempting food

or drink from the tax imposed under subdivision (d) of section eleven

hundred five of this article.

(B) Until May thirty-first, two thousand twenty-nine, the food and

drink excluded from the exemption provided by clauses (i), (ii) and

(iii) of subparagraph (A) of this paragraph, and bottled water, shall be

exempt under this subparagraph: (i) when sold for one dollar and fifty

cents or less through any vending machine that accepts coin or currency

only; or (ii) when sold for two dollars or less through any vending

machine that accepts any form of payment other than coin or currency,

whether or not it also accepts coin or currency.

(2) Water, when delivered to the consumer through mains or pipes.

(3) Drugs and medicines intended for use, internally or externally, in

the cure, mitigation, treatment or prevention of illnesses or diseases

in human beings, medical equipment (including component parts thereof)

and supplies required for such use or to correct or alleviate physical

incapacity, and products consumed by humans for the preservation of

health but not including cosmetics or toilet articles notwithstanding

the presence of medicinal ingredients therein or medical equipment

(including component parts thereof) and supplies, other than such drugs

and medicines, purchased at retail for use in performing medical and

similar services for compensation.

(3-a) Menstrual products, including, but not limited to, pads, tampons

and panty liners.

(3-b) Adult-use cannabis products as defined by article twenty-C of

this chapter.

(4) Prosthetic aids, hearing aids, eyeglasses and artificial devices

and component parts thereof purchased to correct or alleviate physical

incapacity in human beings.

(5) Newspapers and periodicals.

(6) (A) Tangible personal property, whether or not incorporated in a

building or structure, for use or consumption predominantly either in

the production for sale of tangible personal property by farming or in a

commercial horse boarding operation, or in both.

(B) With respect to the exemption of motor vehicles under this

paragraph, (i) use of a motor vehicle either in the production phase of

farming or in a commercial horse boarding operation, or in both, shall

be defined as any use of the motor vehicle on property either farmed or

used in a commercial horse boarding operation, or both, by the motor

vehicle purchaser or user or in direct and uninterrupted trips between

properties farmed or used in such operation, or both, by the motor

vehicle purchaser or user, and (ii) "predominantly" shall mean that more

than fifty percent of the motor vehicle's use is either in the

production phase of farming or in a commercial horse boarding operation,

or in both. The percentage of such vehicle's use either in the

production phase of farming or in a commercial horse boarding operation,

or in both, may be computed either on the basis of mileage or hours of

use, at the discretion of the motor vehicle purchaser or user. A person

may purchase a motor vehicle qualifying for exemption under this

paragraph without payment of tax imposed by section eleven hundred five

or eleven hundred ten of this article by furnishing the vendor a

properly completed exemption certificate promulgated by the

commissioner; and such purchaser may register such vehicle or apply for

a certificate of title for such vehicle with the commissioner of motor

vehicles or a county clerk, without payment of such taxes, by furnishing

such a properly completed certificate to such commissioner or clerk.

(7) Tangible personal property sold by a mortician, undertaker or

funeral director. However, all tangible personal property sold to a

mortician, undertaker or funeral director for use in the conducting of

funerals shall not be deemed a sale for resale within the meaning of

paragraph (4) of subdivision (b) of section eleven hundred one of this

chapter and shall not be exempt from the retail sales tax.

(8) Commercial vessels primarily engaged in interstate or foreign

commerce and property used by or purchased for the use of such vessels

for fuel, provisions, supplies, maintenance and repairs (other than

articles purchased for the original equipping of a new ship).

(9) Fuel sold to an air line for use in its airplanes.

(10) Tangible personal property purchased for use or consumption

directly and predominantly in research and development in the

experimental or laboratory sense. Such research and development shall

not be deemed to include the ordinary testing or inspection of materials

or products for quality control, efficiency surveys, management studies,

consumer surveys, advertising, promotions or research in connection with

literary, historical or similar projects.

(11) The flags of the United States of America and the state of New

York.

(11-a) Any military decorations, including but not limited to,

ribbons, medals, mini-medals, and lapel pins, when sold to a purchaser:

(i) who is a veteran of the United States provided that the purchaser

shall present to the vendor proof in the form of discharge papers, or

other official documentation, of his or her veteran status; or (ii) who

is an active member of the military provided that the purchaser shall

present to the vendor proof or other official documentation of actual

military service.

(11-b) Military service flags, prisoner of war flags and blue star

banners.

(12) 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, but

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

supplies used in connection with such machinery or equipment. This

exemption shall include all pipe, pipeline, drilling rigs, service rigs,

vehicles and associated equipment used in the drilling, production and

operation of oil, gas, and solution mining activities to the point of

sale to the first commercial purchaser.

(12-a) Tangible personal property for use or consumption directly and

predominantly in the receiving, initiating, amplifying, processing,

transmitting, retransmitting, switching or monitoring of switching of

telecommunications services for sale or internet access services for

sale or any combination thereof. Such tangible personal property exempt

under this subdivision shall include, but not be limited to, tangible

personal property used or consumed to upgrade systems to allow for the

receiving, initiating, amplifying, processing, transmitting,

retransmitting, switching or monitoring of switching of

telecommunications services for sale or internet access services for

sale or any combination thereof. As used in this paragraph, the term

"telecommunications services" shall have the same meaning as defined in

paragraph (g) of subdivision one of section one hundred eighty-six-e of

this chapter.

* (12-b) (i) Machinery, equipment or apparatus used or consumed

directly and predominantly to upgrade cable television systems to allow

for the receiving, initiating, amplifying, processing, transmitting,

retransmitting, switching or monitoring of switching of digital cable

television service for sale, including parts with a useful life of one

year or less and tools or supplies used in connection with such

machinery, equipment or apparatus; and (ii) to the extent not otherwise

exempt, equipment or apparatus, sold to an entity principally engaged in

furnishing cable television service for sale, for use or consumption

directly and predominantly in the receiving, initiating, amplifying,

processing, transmitting, retransmitting, switching or monitoring of

switching of internet access service for sale, including parts with a

useful life of one year or less and tools and supplies used in

connection with such equipment or apparatus. As used in this paragraph,

the term "digital cable television service" shall mean cable television

service, as defined in subparagraph two of paragraph (b) of subdivision

two of section one hundred eighty-six-e of this chapter, transmitted by

the use of digital technology; and the term "internet access service"

shall mean such term as defined in subdivision (v) of this section.

* NB Expired September 1, 2003

13. Tangible personal property sold through coin operated vending

machines at ten cents or less, provided the retailer is primarily

engaged in making such sales and maintains records satisfactory to the

state tax commission.

(13-a) Tangible personal property sold through coin operated bulk

vending machines at fifty cents or less, provided the retailer is

primarily engaged in making such sales and maintains records

satisfactory to the commissioner. As used in this paragraph, "bulk

vending machine" means a vending machine, containing unsorted

merchandise, which, upon insertion of a coin, dispenses the same in

approximately equal portions, at random and without selection by the

customer.

(13-b) Temporary transportation devices sold through coin-operated

equipment, provided the retailer is primarily engaged in making such

sales and maintains records satisfactory to the commissioner. As used in

this paragraph, "temporary transportation device" means an instrument of

transport used for a limited period of time for the purpose of carrying

luggage or merchandise a short distance within a facility of

embarkation/disembarkation or a facility where such merchandise was

purchased.

(14) Motor vehicles, as such term is defined in section one hundred

twenty-five of the vehicle and traffic law, sold by a husband or wife to

his or her spouse, or by a parent to his or her child, or by a child to

his or her parent. Provided, however, this exemption shall not apply if

the vendor is a dealer as defined in section four hundred fifteen of the

vehicle and traffic law.

(14-a) Motor vehicles, as such term is defined in section one hundred

twenty-five of the vehicle and traffic law, upon registration of such

motor vehicle if such motor vehicle was purchased in another state by a

person while he or she was in the military service of the United States

upon the return of such person to this state, as long as he or she has

proof of payment, whether made by the seller or purchaser, in another

state of one or more of the following taxes on such motor vehicle:

sales, use, excise, usage, or a highway use tax necessary to obtain

title.

(15) Tangible personal property sold to a contractor, subcontractor or

repairman for use in (i) erecting a structure or building (A) of an

organization described in subdivision (a) of section eleven hundred

sixteen or (B) used predominantly either in the production phase of

farming or in a commercial horse boarding operation, or in both, or (ii)

adding to, altering or improving real property, property or land (A) of

such an organization or (B) used predominantly either in the production

phase of farming or in a commercial horse boarding operation, or in

both, as the terms real property, property or land are defined in the

real property tax law; provided, however, no exemption shall exist under

this paragraph unless such tangible personal property is to become an

integral component part of such structure, building or real property.

(16) Tangible personal property sold to a contractor, subcontractor or

repairman for use in maintaining, servicing or repairing real property,

property or land (i) of an organization described in subdivision (a) of

section eleven hundred sixteen or (ii) used predominantly either in the

production phase of farming or in a commercial horse boarding operation,

or in both, as the terms real property, property or land are defined in

the real property tax law; provided, however, no exemption shall exist

under this paragraph unless such tangible personal property is to become

an integral component part of such structure, building or real property.

(17) Tangible personal property sold by a contractor, subcontractor or

repairman to a person other than an organization described in

subdivision (a) of section eleven hundred sixteen, for whom he is adding

to, or improving real property, property or land by a capital

improvement, or for whom he is about to do any of the foregoing, if such

tangible personal property is to become an integral component part of

such structure, building or real property; provided, however, that if

such sale is made pursuant to a contract irrevocably entered into before

September first, nineteen hundred sixty-nine, no exemption shall exist

under this paragraph.

(18) Tangible personal property sold by a person at his residence

provided such person or any member of his household does not conduct a

trade or business in which similar items are sold, and the receipts from

such sales can reasonably be expected not to exceed six hundred dollars

in a calendar year. If such person reasonably expects that his receipts

from such sales will not exceed six hundred dollars in a calendar year,

but such receipts do exceed such sum, the exemption provided for in this

paragraph will apply but only to the first six hundred dollars of

receipts in such calendar year. Provided, however, where a person

sixteen years of age or older has engaged in such sales for three days

in a calendar year, the exemption provided for in this paragraph shall

not apply to subsequent sales in that calendar year. The exemption

provided for in this paragraph shall also not apply to (A) sales at a

private residence conducted by an auctioneer, sheriff or other third

party, (B) a sale held to liquidate an estate or (C) the sale of boats,

snowmobiles or motor vehicles except such sales of motor vehicles within

the exemptions of paragraph fourteen of subdivision (a) of this section.

(18-a) Tangible personal property manufactured and sold by a veteran,

as defined in section twenty-two of the veterans' services law, for the

benefit of a veteran's service organization, provided that such person

or any member of his or her household does not conduct a trade or

business in which similar items are sold, the first two thousand five

hundred dollars of receipts from such sales in a calendar year.

(19) Cartons, containers, and wrapping and packaging materials and

supplies, and components thereof for use and consumption by a vendor in

packaging or packing tangible personal property for sale, and actually

transferred by the vendor to the purchaser.

(19-a) Milk crates purchased by a dairy farmer or New York state

licensed milk distributor and used exclusively and directly for the

packaging and delivery of milk and milk products to customers.

(20) Paper, ink and any other tangible personal property purchased for

use in the publication of a shopping paper, as such term is defined in

and limited by subdivision (i) of this section, which is to become a

physical component part of such paper.

(21) Commercial aircraft primarily engaged in intrastate, interstate

or foreign commerce, machinery or equipment to be installed on such

aircraft and property used by or purchased for the use of such aircraft

for maintenance and repairs and flight simulators purchased by

commercial airlines.

(21-a) General aviation aircraft, and machinery or equipment to be

installed on such aircraft. For purposes of this subdivision, "general

aviation aircraft" means an aircraft that is used in civil aviation,

that is not a commercial aircraft as defined in paragraph seventeen of

subdivision (b) of section eleven hundred one of this article, military

aircraft, unmanned aerial vehicle or drone.

(22) The rental or lease of trucks, tractors or tractor-trailer

combinations to an authorized carrier, pursuant to a written contractual

agreement, for use in the transportation for hire of tangible personal

property as augmenting equipment by such authorized carrier, provided

that under such rental, lease or license to use, the owner of any such

vehicle or any employee of such owner operates such vehicle. For

purposes of this paragraph, the term "authorized carrier" shall have the

same meaning given that term in subpart-A of part ten hundred

fifty-seven of title forty-nine of the code of federal regulations and

in part eight hundred forty-five of title seventeen of the codes, rules

and regulations of the state of New York, as the case may be, and the

term "augmenting equipment" shall have the same meaning given that term

in such part of such title of the codes, rules and regulations of the

state of New York.

(23) Used mobile homes.

(24) Fishing vessels used directly and predominantly in the harvesting

of fish for sale, and property used by or purchased for the use of such

vessels for fuel, provisions, supplies, maintenance and repairs. For the

purpose of this paragraph the term fishing vessel shall not include any

vessel used predominantly for sport fishing purposes.

(25) Natural gas used for personal residence consumption by a land

owner from, or provided in exchange for gas from, a natural gas well

located on property owned by such land owner, such gas having been set

aside for the property owner's use by lease.

(26) Tractors, trailers or semi-trailers, as such terms are defined in

article one of the vehicle and traffic law, and property installed on

such vehicles for their equipping, maintenance or repair, provided such

vehicle is used in combination where the gross vehicle weight of such

combination exceeds twenty-six thousand pounds.

(27) Precious metal bullion sold for investment, provided that (i) the

retailer, if so required, is registered pursuant to section three

hundred fifty-nine-e of the general business law and (ii) the receipt or

consideration given or contracted to be given for such bullion depends

only on the value of the metal content of such bullion. "Precious metal

bullion" means bars, ingots or coins of gold, silver, platinum,

palladium, rhodium, ruthenium or iridium, but shall not include bars,

ingots or coins which have been manufactured, processed, assembled,

fabricated or used for an industrial, professional, esthetic or artistic

purpose. Precious metal bullion shall be deemed to be sold for

investment when it is sold for more than one thousand dollars and the

purchaser or user or agent of either of them holds it in the same form

as when it was purchased and does not manufacture, process, assemble or

fabricate such bullion for its own use. For purposes of this paragraph,

the receipt or consideration given or contracted to be given shall be

deemed to depend only on the value of the metal content if, at the time

of sale or purchase at retail, such receipt or consideration does not

exceed (i) one hundred forty percent, with respect to silver coins, or

(ii) one hundred twenty percent, with respect to gold coins weighing

one-quarter of an ounce or less, or (iii) one hundred fifteen percent,

with respect to other coins, of the greater of (A) the daily closing

bullion cash price of such metal in the open market or (B) the coins'

face value at prevailing rates of exchange, or (iv), with respect to

bars and ingots, one hundred fifteen percent of such bullion cash price

of such metal. Where there is no such closing price for such metal, the

average of the bid and asked cash prices shall be substituted for such

closing price.

(28) Computer software designed and developed by the author or creator

to the specifications of a specific purchaser which is transferred

directly or indirectly to a corporation which is a member of an

affiliated group of corporations within the meaning of subparagraph six

of paragraph (b) of subdivision seventeen of section two hundred eight

of this chapter except for clauses (ii) and (iii) of such subparagraph

that includes such purchaser, or to a partnership in which such

purchaser and other members of such affiliated group have at least a

fifty percent capital or profits interest (but only if the transfer is

not in pursuance of a plan having as its principal purpose the avoidance

or evasion of tax under this article), but in no case including computer

software which is pre-written, as defined in paragraph six of

subdivision (b) of section eleven hundred one of this article and

available to be sold to customers in the ordinary course of the seller's

business.

(29) a horse which is a racehorse registered with the jockey club, the

United States trotting association or the national steeplechase and hunt

association (or such a horse during the first twenty-four months of its

life if it is eligible to be so registered) which is purchased or used

with the intent that it shall be entered in an event on which

pari-mutuel wagering is authorized by law, except that the exemption

provided for under this paragraph shall not apply to any such horse

which is considered to be at least four years old and has never raced in

an event on which pari-mutuel wagering is authorized by law. Provided,

further, the purchaser of such a racehorse must give to the seller a

certification containing such information as the commissioner of

taxation and finance shall require, which shall include a statement to

the effect that the purchaser intends to enter such horse in events on

which pari-mutuel wagering is authorized by law. Such certification

shall be retained by such seller, together with documentary proof of the

age of such horse, for a three-year period. The provisions of this

paragraph shall apply to all sales and uses of racehorses occurring on

and after June first, nineteen hundred ninety-four.

(30) Clothing and footwear for which the receipt or consideration

given or contracted to be given is less than one hundred ten dollars per

article of clothing, per pair of shoes or other articles of footwear or

per item used or consumed to make or repair such clothing and which

becomes a physical component part of such clothing.

(30-a) Diapers intended for human use including, but not limited to:

disposable, reusable, adult, and children's diapers.

* (31) Copies sold through coin operated photocopying machines at

fifty cents or less. As used in this paragraph, "photocopying machine"

means a vending machine which, upon insertion of a coin, copies a

document for a purchaser.

* NB There are 2 par. (31)'s

* (31) Enhanced emissions inspection equipment, certified by the

department of environmental conservation, pursuant to regulations

promulgated by such department, for use in an enhanced emissions

inspection and maintenance program as required by the federal clean air

act of 1990, as amended in nineteen hundred ninety(42 U.S.C. 7401 et

seq.) and the New York state clean air compliance act enacted by chapter

608 of the laws of 1993, where such equipment is purchased and used by

an official inspection station licensed by the commissioner of motor

vehicles under article five of the vehicle and traffic law and

authorized to conduct the enhanced emission inspections required by such

federal act.

* NB There are 2 par. (31)'s

(32) Omnibuses, as such term is defined in article one of the vehicle

and traffic law, weighing at least twenty-six thousand pounds and

measuring at least forty feet in length and parts, equipment and

lubricants purchased and used in their operation, provided such

omnibuses are used to transport persons for hire by a carrier operating

pursuant to a certificate of authority issued by the New York state

commissioner of transportation or by an appropriate agency of the United

States. Where receipts from the sale of or consideration given or

contracted to be given for the purchase of an omnibus or other property

has been exempted under this paragraph, such receipts or consideration

shall not also qualify for the refund or credit described in subdivision

(b) of section eleven hundred nineteen of this article; where any or all

of the tax on receipts from the sale of or consideration given or

contracted to be given for the purchase of an omnibus or other property

has been refunded or credited under such subdivision (b), no part of

such receipts or consideration shall be exempt under this paragraph.

Nothing in this paragraph shall be construed to affect the refund or

credit under subdivision (b) of such section eleven hundred nineteen

with respect to the purchase or use of motor fuel or diesel motor fuel.

(33) Wine or wine product, beer or beer product, cider or cider

product, liquor or liquor product, mead or mead product, and the kegs,

cans, bottles, growlers, corks, caps, and labels used to package such

alcoholic product, furnished by the official agent of a farm winery,

winery, brewery, farm brewery, cider producer, farm cidery, distillery,

farm distillery, mead producer, farm meadery, wholesaler, or importer at

a tasting held in accordance with the alcoholic beverage control law to

a customer or prospective customer who consumes such wine, beer, cider,

liquor or mead at such tasting.

(34) Textbooks purchased by full and part time college students for

their courses; provided, however, that upon purchase such a student

shall present a valid student identification card, and such a textbook

shall be required for a course being taken by such student at an

institution of higher education. For purposes of this subdivision the

term:

(i) "Textbooks" includes only those books specifically written,

designed or produced for educational, instructional or pedagogical

purposes.

(ii) "Institution of higher education" shall mean any institution of

higher education, recognized and approved by the regents of the

university of the state of New York or accredited by a nationally

recognized accrediting agency or association accepted as such by the

regents of the university of the state of New York, which provides a

course of study leading to the granting of a post-secondary degree,

certificate or diploma.

(35) Computer system hardware used or consumed directly and

predominantly in designing and developing computer software for sale or

in providing the service, for sale, of designing and developing internet

websites.

(36) Parts with a useful life of one year or less, tools and supplies

for use or consumption directly and predominantly in the production for

sale of gas or oil by manufacturing, processing, generating, assembling,

refining, mining, or extracting.

(37) (i) Machinery, equipment and other tangible personal property

specified herein, sold to a person operating an internet data center

located in this state for use in such a center, where such property: (A)

will be located or installed in a facility or structure which is an

internet data center and (B) is required for and directly related to the

provision of internet website services for sale by the operator of the

center. Such property shall include computer system hardware including

servers and routers, computer software, storage racks and cages for

computer equipment, interior fiber optic and copper cables, property

required to maintain the appropriate climate controlled environment for

the property in the internet data center such as air filtration and air

conditioning equipment and vapor barriers, property related to fire

control such as fire suppression equipment and alarms, power generators,

power conditioners, property related to providing a secure environment

such as protective barriers, property which when installed in such

facility or structure will constitute raised flooring and other similar

property. For purposes of this paragraph the operator of an internet

data center is a person (A) operating a facility which consists of a

data center specifically designed and constructed to provide a high

security environment for the location of servers and similar equipment

on which reside internet websites; and (B) providing at such facility

the internet website services of: (I) uninterrupted internet access to

its customers' web pages in a secure environment and (II) continuous

internet traffic management for its customers' web pages.

(ii) For purposes of this paragraph, an operator of an internet data

center, primarily engaged in the sale from such center of internet

access services exempt from tax under subdivision (v) of this section,

is not providing internet website services for sale. Primarily engaged

shall mean that more than fifty percent of the use of all the machinery,

equipment and other specified property in any such center, which would

otherwise be exempt under this paragraph, is for the rendition of such

internet access services.

(iii) Receipts from the retail sale of the tangible personal property

exempt pursuant to subparagraph (i) of this paragraph if purchased by an

operator of an internet data center, shall be exempt when purchased by a

contractor, subcontractor or repairman for use as described in such

subparagraph (i), where such property is to become a capital improvement

to real property.

(iv) In order to receive the exemption provided for under this

paragraph or subdivision (y) of this section, the operator of the

internet data center or the contractor, subcontractor or repairman shall

furnish to the vendor of the exempt property or services a certificate

in such form and containing such information as may be prescribed by the

commissioner.

(38) (A) Machinery or equipment or other tangible personal property

(including parts, tools and supplies) for use or consumption by a

broadcaster directly and predominantly in the production (including

post-production) of live or recorded programs which are used or consumed

by a broadcaster predominantly for the purpose of broadcast over-the-air

by such broadcaster or transmission through a cable television or direct

broadcast satellite system by such broadcaster. Tangible personal

property, which is described in the preceding sentence, and which is

leased by a broadcaster to another person for that person's use or

consumption directly and predominantly in the production (including

post-production) of such live or recorded programs by such person, shall

be deemed to be used or consumed by the lessor for purposes of applying

the directly and predominantly requirement of this subparagraph.

(B) Machinery or equipment or other tangible personal property

(including parts, tools and supplies) for use or consumption by a

broadcaster directly and predominantly in the transmission of live or

recorded programs over-the-air or through a cable television or direct

broadcast satellite system by such broadcaster. Tangible personal

property, which is described in the preceding sentence, and which is

leased by a broadcaster to another person for that person's use or

consumption directly and predominantly in the transmission of such live

or recorded programs by such person, shall be deemed to be used or

consumed by the lessor for purposes of applying the directly and

predominantly requirement of this subparagraph.

(C) For purposes of this paragraph: (i) the term "broadcaster" means a

television or radio station licensed by the federal communications

commission, a television or radio broadcast network or a cable

television network. The term "television or radio broadcast network"

means an organization which produces and/or purchases programs intended

for transmission by affiliated television or radio stations licensed by

the federal communications commission and which has distribution

facilities or circuits available to such affiliated stations during all

or some portion of one or more days during each week. The term "cable

television network" means an organization which produces and/or

purchases programs intended for transmission either by direct broadcast

satellite systems or by cable systems pursuant to an affiliation or

similar agreement and which has distribution facilities or circuits

available to such direct broadcast satellite systems or such cable

systems during all or some portion of one or more days during each week.

For the purpose of subparagraph (B) of this paragraph, the term

"broadcaster" shall not include cable system operators and direct

broadcast satellite system operators. Provided, however, for the purpose

of subparagraph (A) of this paragraph, such term shall also include a

cable system operator or a direct broadcast satellite system operator

solely with respect to machinery or equipment or other tangible personal

property (including parts, tools and supplies) for use or consumption by

it directly and predominantly in the production (including

post-production) of live or recorded programs intended for transmission

to its viewers over its system; (ii) the term "programs" means any

performance, event, play, story or literary, musical, artistic or other

work used for entertainment or educational purposes, including but not

limited to news, news specials, sporting events, game shows, talk shows

and commercials; and (iii) the term "recorded programs" means any

program contained on any medium.

(39) Tangible personal property for use or consumption directly and

predominantly in the production, including editing, dubbing and mixing,

of a film for sale regardless of the medium by means of which the film

is conveyed to a purchaser. For purposes of this paragraph, the term

"film" means feature films, documentary films, shorts, television films,

television commercials and similar productions.

(40) Machinery or equipment for use or consumption directly and

predominantly in the control, prevention, or abatement of pollution or

contaminants from manufacturing or industrial facilities, to the extent

such machinery or equipment is not otherwise exempt under paragraph

twelve of this subdivision.

(41) machinery and equipment for use directly and predominantly in

loading, unloading and handling cargo at a marine terminal facility

located in a city with a population of one million or more which in two

thousand three, handled more than three hundred fifty thousand

twenty-foot equivalent units (TEUs). For the purpose of this section the

term twenty-foot equivalent unit (TEU) is used to express the relative

number of containers based on the equivalent length of a twenty-foot

container.

* (42) E85, CNG or hydrogen, for use or consumption directly and

exclusively in the engine of a motor vehicle and natural gas purchased

and converted into CNG, for use or for sale for use or consumption

directly and exclusively in the engine of a motor vehicle.

* NB Repealed September 1, 2031

(43) Ferry boats used directly and predominantly to provide ferry

service for vehicles and passengers within a county or counties by a

ferry company whose rates for that ferry service are regulated by the

county or counties in which that service is provided under section one

hundred thirty-one-g of the highway law and property used by or

purchased for the use of those exempt ferry boats for fuel, provisions,

supplies, maintenance and repairs.

(44) monuments as that term is defined in paragraph (f) of section

fifteen hundred two of the not-for-profit corporation law, and tangible

personal property that will become a physical component part of such

monuments.

(45) Sales by a brewery licensed under section fifty-one of the

alcoholic beverage control law, or a farm brewery licensed under section

fifty-one-a of such law, of no more than four samples of beer not

exceeding four fluid ounces each, and each sample shall be a different

beer than the others. Only a customer's first purchase during each

calendar day at each licensed entity shall be exempt under this

paragraph.

(46) Breast pump replacement parts and breast pump collection and

storage supplies to an individual purchaser for home use. For purposes

of this subdivision:

(A) "Breast pump replacement parts" shall mean items used in

conjunction with a breast pump to collect milk expressed from a human

breast and shall include, but not be limited to: breast shields and

breast shield connectors; breast pump tubes and tubing adapters; breast

pump valves and membranes; backflow protectors and backflow protector

adapters; and bottles and bottle caps specific to the operation of the

breast pump. "Breast pump replacement parts" does not include storage

bags and infant feeding bottles that are not specifically designed for,

or a component part of, a breast pump.

(B) "Breast pump collection and storage supplies" shall mean breast

milk storage bags used to collect breast milk and to store collected

breast milk until it is ready for consumption.

(b) (i) Telephony and telegraphy and telephone and telegraph service

used by newspapers, electronic news services, radio broadcasters and

television broadcasters in the collection or dissemination of news shall

be exempt from the tax imposed under subdivision (b) of section eleven

hundred five of this article if the charge for such services is a toll

charge or a charge for mileage services, including the associated

station terminal equipment.

(ii) Gas, electricity, refrigeration and steam, and gas, electric,

refrigeration and steam service of whatever nature for use or

consumption directly and exclusively in research and development in the

experimental or laboratory sense shall be exempt from the tax imposed

under subdivision (b) of section eleven hundred five and the

compensating use tax imposed under section eleven hundred ten of this

article. Such research and development shall not be deemed to include

the ordinary testing or inspection of materials or products for quality

control, efficiency surveys, management studies, consumer surveys,

advertising, promotions or research in connection with literary,

historical or similar projects.

(iii) (A) Electricity, steam, and refrigeration and electric, steam,

and refrigeration services that are (1) metered and (2) generated or

produced by a cogeneration facility owned or operated by a cooperative

corporation containing at least fifteen hundred apartments, where such

electricity, steam, or refrigeration and/or electric, steam, or

refrigeration services are distributed to tenants and/or occupants of a

cooperative corporation, shall be exempt from the taxes imposed under

subdivisions (a) and (b) of section eleven hundred five and the

compensating use tax imposed under section eleven hundred ten of this

article.

(B) For purposes of this paragraph, the term "cogeneration facility"

means (1) a facility that produces electric energy and steam or other

forms of useful energy (such as heat) that are used for industrial,

commercial, or residential heating or cooling purposes that was in

operation before January first, two thousand four, and is used to

generate electricity and/or thermal energy produced by such facility

when such electricity and/or thermal energy is supplied to and used by

tenants and/or occupants of a cooperative corporation; or (2) a

cogeneration facility, as defined in clause one of this subparagraph,

that has been replaced by any other facility used to generate

electricity and/or thermal energy produced by such facility when such

electricity and/or thermal energy is supplied to and used by tenants

and/or occupants of a cooperative corporation.

(C) For purposes of this paragraph, the term "cooperative corporation"

means a corporation organized under the laws of New York, at least some

of the stockholders of which are entitled, by reason of the

stockholders' ownership interest of stock in the corporation, to occupy

for dwelling purposes an apartment in a building owned by the

corporation pursuant to a lease or occupancy agreement with the

corporation.

(D) Fuel, gas, electricity, refrigeration and steam, and gas,

electric, refrigeration and steam service, used or consumed in the

production of electricity, steam, and refrigeration and electric, steam,

and refrigeration services for sale that are exempted under subparagraph

(A) of this paragraph, shall not be entitled to the exemption provided

by paragraph one of subdivision (c) of this section.

(c) (1) Fuel, gas, electricity, refrigeration and steam, and gas,

electric, refrigeration and steam service of whatever nature for use or

consumption directly and exclusively in the production of tangible

personal property, gas, electricity, refrigeration or steam, for sale,

by manufacturing, processing, assembling, generating, refining, mining

or extracting shall be exempt from the taxes imposed under subdivisions

(a) and (b) of section eleven hundred five and the compensating use tax

imposed under section eleven hundred ten of this article.

(2) Fuel, gas, electricity, refrigeration and steam, and gas,

electric, refrigeration and steam service of whatever nature for use or

consumption either in the production of tangible personal property, for

sale, by farming or in a commercial horse boarding operation, or in

both, shall be exempt from the taxes imposed under subdivisions (a) and

(b) of section eleven hundred five and the compensating use tax imposed

under section eleven hundred ten of this article.

(d) Services otherwise taxable under paragraph (1), (2), (3), (7) or

(8) of subdivision (c) of section eleven hundred five shall be exempt

from tax under this article if the tangible property upon which the

services were performed is delivered to the purchaser outside this state

for use outside this state.

(e) Telephone and telegraph service paid for by inserting coins in

coin operated telephones where the charge is twenty-five cents or less

shall be exempt from the tax imposed under subdivision (b) of section

eleven hundred five. For the purposes of this subdivision, each payment

for overtime or additional usage beyond the initial usage period shall

be deemed to be a separate charge.

(f) (1) Services rendered by a veterinarian licensed and registered as

required by the education law which constitute the practice of

veterinary medicine as defined in said law, including hospitalization

for which no separate boarding charge is made, shall not be subject to

tax under paragraph (3) of subdivision (c) of section eleven hundred

five, but the exemption allowed by this subdivision shall not apply to

other services provided by a veterinarian to pets and other animals,

including, but not limited to, boarding, grooming and clipping. Articles

of tangible personal property designed for use in some manner relating

to domestic animals or poultry, when sold by such a veterinarian, shall

not be subject to tax under subdivision (a) of section eleven hundred

five or under section eleven hundred ten. However, the sale of any such

articles of tangible personal property to a veterinarian shall not be

deemed a sale for resale within the meaning of paragraph (4) of

subdivision (b) of section eleven hundred one and shall not be exempt

from retail sales tax.

(2) Drugs or medicine sold to or used by a veterinarian for use in

rendering services that are exempt pursuant to paragraph one of this

subdivision to livestock or poultry used in the production for sale of

tangible personal property by farming, or sold to a person qualifying

for the exemption provided for in paragraph six of subdivision (a) of

this section for use by such person on such livestock or poultry.

(g) Services otherwise taxable under paragraph (3) of subdivision (c)

of section eleven hundred five shall be exempt from tax (1) if performed

upon prosthetic aids, hearing aids, eyeglasses, artificial devices or

medical equipment when receipts from the retail sale of such items are

exempt from tax under the provisions of paragraphs three and four of

subdivision (a) of this section or (2) if performed upon tractors,

trailers or semi-trailers or on property installed on such vehicles for

their equipping, maintenance or repair when receipts from the retail

sale of such items are exempt from tax under the provisions of paragraph

twenty-six of subdivision (a) of this section.

(h) Sales of tangible personal property by a railroad in

reorganization to a profitable railroad, as such terms are defined in

section one hundred two of the rail reorganization act of nineteen

hundred seventy-three, as part of a plan of reorganization and

restructuring under such rail reorganization act, shall be exempt from

the tax on retail sales imposed under subdivision (a) of section eleven

hundred five and the compensating use tax imposed under section eleven

hundred ten.

(i) (A) Receipts from the retail sale of a shopping paper to the

publisher of such publication shall be exempt from the tax imposed by

subdivision (a) of section eleven hundred five of this article and

receipts from the sale of printing services performed in publishing such

paper shall be exempt from the tax imposed by paragraph two of

subdivision (c) of such section.

(B) For purposes of this subdivision, the term "shopping paper" shall

mean those community publications distributed to the public, without

consideration, for purposes of advertising and public information. To

qualify as a shopping paper for purposes of this subdivision, the

publication must also:

(1) be distributed to the public on a community-wide basis,

(2) be published at stated intervals at least fifty times a year;

(3) having continuity as to title and general nature of content from

issue to issue,

(4) contain in each issue news of general or community interest and

community notices or editorial comment or articles by different authors;

(5) not constitute a book, either singly or when successive issues are

put together;

(6) contain in each issue advertisements from numerous unrelated

advertisers;

(7) be independently owned in that the publication is not owned by or

under the control of the owners or lessees of a shopping center or a

merchants association or similar entity or a business which sells

property or services (other than advertising) and the advertisements in

such publication are not predominantly for the property or services sold

by such business; and

(8) meet the requirement set forth in paragraph (C) of this

subdivision.

(C) The advertisements in such publication shall not exceed ninety

percent of the printed area of all issues as averaged on an annual

basis.

(D) The term "shopping paper" shall not include mail order and other

catalogs, advertising fliers, travel brochures, house organs, theatre

programs, telephone directories, shipping and restaurant guides, racing

tip and form sheets, shopping center advertising sheets and similar

publications.

* (j) The exemptions provided in this section shall not apply to the

tax required to be prepaid pursuant to the provisions of section eleven

hundred two of this article nor to the taxes imposed by sections eleven

hundred five and eleven hundred ten of this article with respect to

receipts from sales and uses of motor fuel or diesel motor fuel, except

that the exemptions provided in paragraphs nine and forty-two of

subdivision (a) of this section shall apply to the tax required to be

prepaid pursuant to the provisions of section eleven hundred two of this

article and to the taxes imposed by sections eleven hundred five and

eleven hundred ten of this article with respect to sales and uses of

kero-jet fuel, CNG, hydrogen and E85, provided, however, the exemption

allowed for E85 shall be subject to the additional requirements provided

in section eleven hundred two of this article with respect to E85. The

exemption provided in subdivision (c) of this section shall apply to

sales and uses of non-highway diesel motor fuel but only if all of such

fuel is consumed other than on the public highways of this state. The

exemption provided in subdivision (c) of this section shall apply to

sales and uses of non-highway diesel motor fuel for use or consumption

either in the production for sale of tangible personal property by

farming or in a commercial horse boarding operation, or in both but only

if all of such fuel is consumed other than on the public highways of

this state (except for the use of the public highways to reach adjacent

farmlands or adjacent lands used in a commercial horse boarding

operation, or both).

* NB Effective until September 1, 2031

* (j) The exemptions provided in this section shall not apply to the

tax required to be prepaid pursuant to the provisions of section eleven

hundred two of this article nor to the taxes imposed by sections eleven

hundred five and eleven hundred ten of this article with respect to

receipts from sales and uses of motor fuel or diesel motor fuel, except

that the exemption provided in paragraph nine of subdivision (a) of this

section shall apply to the tax required to be prepaid pursuant to the

provisions of section eleven hundred two of this article and to the

taxes imposed by sections eleven hundred five and eleven hundred ten of

this article with respect to sales and uses of kero-jet fuel. The

exemption provided in subdivision (c) of this section shall apply to

sales and uses of non-highway diesel motor fuel but only if all of such

fuel is consumed other than on the public highways of this state. The

exemption provided in subdivision (c) of this section shall apply to

sales and uses of non-highway diesel motor fuel for use or consumption

either in the production for sale of tangible personal property by

farming or in a commercial horse boarding operation, or in both but only

if all of such fuel is consumed other than on the public highways of

this state (except for the use of the public highways to reach adjacent

farmlands or adjacent lands used in a commercial horse boarding

operation, or both).

* NB Effective September 1, 2031

(k) Receipts from the sale of food eligible to be purchased with

coupons issued under or pursuant to the federal food stamp act of

nineteen hundred seventy-seven (7 U.S.C. § 2011 et seq.), as amended,

from retail food stores and other participants, approved for

participation under or pursuant to such act, shall be exempt from the

sales and compensating use taxes imposed under this article, when such

food is purchased with such coupons, but only so long as such act

conditions state participation in the federal food stamp program on this

state providing an exemption from state and local sales taxes for

purchases of food made with coupons issued under or pursuant to such act

and this state is participating in such program.

(l) Tangible personal property manufactured, processed or assembled

and donated by the manufacturer, processor or assembler to an

organization described in subdivision (a) of section eleven hundred

sixteen shall be exempt from tax under this article provided that the

manufacturer, processor or assembler offers the same kind of tangible

personal property for sale in the regular course of business and

provided further that the manufacturer, processor or assembler has not

made any other use of the tangible personal property which is donated.

Nothing in this subdivision shall be construed to allow a refund or

credit of tax properly paid pursuant to this article.

(m) (1) The services of training and maintaining a racehorse to race

in a race or race meeting held, maintained or conducted pursuant to the

racing, pari-mutuel wagering and breeding law or a similar law of

another state, when the services are rendered to the owner of the

racehorse by a trainer of the racehorse, shall be exempt from tax under

this article;

(2) Tangible personal property actually transferred by a trainer to

the owner of the racehorse in conjunction with the rendering of a

service that is exempt under paragraph one of this subdivision shall be

exempt from tax under this article. However, the sale to a trainer of

such a racehorse of any such tangible personal property or such services

taxable under this article shall not be deemed a sale for resale within

the meaning of paragraph four of subdivision (b) of section eleven

hundred one and shall not be exempt from retail sales or compensating

use tax;

(3) For purposes of this subdivision, a trainer means a horse trainer

licensed under the racing, pari-mutuel wagering and breeding law or a

similar law of another state, and a racehorse means a horse registered

with the jockey club, the United States trotting association, American

quarterhorse association or the National steeplechase and hunt

association or a horse, during the first twenty-four months of its life,

if it is eligible to be so registered.

(n) (1) Except as otherwise provided in this subdivision, promotional

materials mailed, shipped or otherwise distributed from a point within

the state, by or on behalf of vendors or other persons to their

customers or prospective customers located outside this state for use

outside this state shall be exempt from the tax on retail sales imposed

under subdivision (a) of section eleven hundred five and the

compensating use tax imposed under section eleven hundred ten of this

article.

(2) Services otherwise taxable under paragraph one or two of

subdivision (c) of section eleven hundred five of this article relating

to mailing lists or activities directly in conjunction with mailing

lists shall be exempt from tax under this article if such services are

performed on or directly in conjunction with promotional materials

exempt under paragraph one or four of this subdivision.

(3) Receipts from the retail sale of promotional materials, receipts

from every sale, except for resale, of services described in paragraph

one or two of subdivision (c) of section eleven hundred five to such

promotional materials and consideration given or contracted to be given

for either such materials or such services to such materials shall be

exempt from tax under this article to the extent of the vendor's

separately stated charge to the purchaser of such materials or services

for the vendor's cost to ship or deliver such materials to the

purchaser's customers or prospective customers by means of the United

States postal service, paid by the vendor to such postal service to ship

or deliver such materials, but only where the vendor separately states

such charge to ship or deliver (not exceeding the vendor's United States

postal service costs) in a written contract with the purchaser or on a

written bill rendered to the purchaser.

(4) Notwithstanding any contrary provisions of paragraph one of this

subdivision, promotional materials which are printed materials and

promotional materials upon which services described in paragraph two of

subdivision (c) of section eleven hundred five have been directly

performed shall be exempt from tax under this article where the

purchaser of such promotional materials mails or ships such promotional

materials, or causes such promotional materials to be mailed or shipped,

to its customers or prospective customers, without charge to such

customers or prospective customers, by means of a common carrier, United

States postal service or like delivery service.

(5) Services otherwise taxable under paragraph two of subdivision (c)

of section eleven hundred five performed on promotional materials exempt

under paragraph four of this subdivision shall be exempt from tax under

this article.

(6) Storing promotional materials exempt under paragraph four of this

subdivision shall be exempt from tax under this article where the vendor

of the storing service is also either the vendor of such exempt

promotional materials or the vendor who rendered exempt services under

paragraph two or five, or both, of this subdivision with respect to such

exempt promotional materials and the purchaser of the storing service is

the purchaser of such exempt promotional materials.

(7) Mechanicals, layouts, artwork, photographs, color separations and

like property shall be exempt from tax under this article where such

property is purchased, manufactured, processed or assembled by a person

who furnishes such property to a printer and the printer uses such

property directly and predominantly in the production of promotional

materials exempt under paragraph four of this subdivision, or in

performing services exempt under paragraph five of this subdivision, for

sale by such printer to the person who furnished such property to the

printer.

(8) Nothing in this subdivision shall be construed to exempt tangible

personal property (i) purchased by a person (other than exempt

promotional materials described in paragraph four of this subdivision)

or (ii) manufactured, processed or assembled by the manufacturer,

processor or assembler, who furnishes such property to the vendor of

promotional materials exempt under paragraph one or four of this

subdivision to be included as free gifts with such exempt promotional

materials to be mailed or shipped to such purchaser's or such

manufacturer's, processor's or assembler's customers or prospective

customers or who otherwise uses such property in this state, for

example, by giving or donating the property as free gifts to another

person, unless such tangible personal property is mailed, shipped or

otherwise distributed from a point within this state to such customers

or prospective customers located outside this state for use outside this

state.

(o) Services otherwise taxable under subdivision (c) of section eleven

hundred five or under section eleven hundred ten shall be exempt from

tax under this article where performed on computer software of any

nature; provided, however, that where such services are provided to a

customer in conjunction with the sale of tangible personal property any

charge for such services shall be exempt only when such charge is

reasonable and separately stated on an invoice or other statement of the

price given to the purchaser.

(q) Services otherwise taxable under paragraph three of subdivision

(c) of section eleven hundred five or under section eleven hundred ten

of this article, and tangible personal property purchased and used by

the person who sells such services in performing such services, where

such property becomes a physical component part of the property upon

which the services are performed, shall be exempt from tax under this

article where such services are performed on a barge which is not self

propelled, has a cargo capacity of at least one thousand short tons, is

used exclusively by the owner, lessee or operator of the barge to

transport goods or other property in the conduct of such person's

business and is primarily engaged in interstate or foreign commerce.

(r) Receipts from the sale of alarm call services designed

specifically to respond to medical emergencies and the use of such

services, otherwise taxable under paragraph eight of subdivision (c) of

section eleven hundred five or under clause (C) of subdivision (a) of

section eleven hundred ten of this article, shall be exempt from such

taxes.

* (s) The exemptions provided in this section shall not apply to the

tax required to be prepaid pursuant to the provisions of section eleven

hundred three of this article.

* NB There are 2 sub (s)'s

* (s) (1) The sale of any good or service necessary for the

acquisition, sustenance or maintenance of a guide dog, a hearing dog or

a service dog, as defined in section one hundred eight of the

agriculture and markets law, which is utilized by any person with a

disability, shall be exempt from taxation pursuant to this article.

(2) For the purposes of this subdivision, "person with a disability"

shall mean any person with a disability as that term is defined in

subdivision twenty-one of section two hundred ninety-two of the

executive law who uses a guide dog, hearing dog, or service dog to do

work or perform tasks for such person, with respect to such disability

and for which such dog is trained.

(3) The commissioner shall create and implement a means of identifying

persons who make purchases which shall be exempt pursuant to this

subdivision. Such persons shall include persons who have a dependent

with a disability, and who makes purchases on behalf of such dependent.

Only persons presenting such means of identification shall receive the

exemption granted pursuant to this subdivision. Furthermore, the

commissioner shall promulgate any rules and regulations necessary to

implement the provisions of this subdivision.

* NB There are 2 sub (s)'s

(t) (1) Receipts of a car wash facility from every sale, except for

resale, of the service of washing, waxing or vacuuming a motor vehicle

or other tangible personal property and consideration given or

contracted to be given for such service at such a facility, where (i)

the motor vehicle or other tangible personal property is washed, waxed

or vacuumed at such facility by means exclusively of coin-operated

equipment at such facility of the vendor providing the service; and (ii)

neither the vendor nor any employee of the vendor assists in washing,

waxing or vacuuming the motor vehicle or other tangible personal

property; and (iii) the purchaser or user of the service washes, waxes

or vacuums such person's motor vehicle or other tangible personal

property at such a facility, or (iv) the motor vehicle or other tangible

personal property is washed, waxed or vacuumed by automated equipment

without assistance by the purchaser or user of the service, shall be

exempt from tax under this article, to the extent of the amount of money

or value, in money, of tokens deposited in such coin-operated equipment

by the purchaser of the service.

(2) Except to the extent exempt under paragraph one of this

subdivision receipts from every sale, except for resale, of the service

of vacuuming a motor vehicle or other tangible personal property and

consideration given or contracted to be given for such service, where

the purchaser or user of the service vacuums such person's motor vehicle

or other tangible personal property at the facility where the vacuum

equipment is located, by means exclusively of coin-operated equipment

and neither the vendor operating the facility nor any employee of the

vendor assists the purchaser in vacuuming the vehicle or other tangible

personal property, shall be exempt from tax under this article, to the

extent of the amount of money or value, in money, of tokens deposited in

such coin-operated equipment by the purchaser of the service.

(3) For purposes of this subdivision, the term "coin-operated"

includes coin-operated, currency-operated or token-operated and the term

"motor vehicle" shall mean a motor vehicle as defined in subdivision (f)

of section eleven hundred thirty-two of this article.

(u) Receipts from every sale of the services described in paragraph

three of subdivision (c) of section eleven hundred five of this article

to omnibuses, parts, equipment and lubricants exempt from tax under

paragraph thirty-two of subdivision (a) of this section shall be exempt

from tax under this article. Where receipts from the sale of or

consideration given or contracted to be given for the purchase of a

service have been exempted under this subdivision, such receipts or

consideration shall not also qualify for the refund or credit described

in subdivision (b) of section eleven hundred nineteen of this article;

where any or all of the tax on receipts from the sale of or

consideration given or contracted to be given for the purchase of a

service has been refunded or credited under such subdivision (b), no

part of such receipts or consideration shall be exempt under this

subdivision.

(v) Receipts from the sale of Internet access service, including

start-up charges, and the use of such service, shall be exempt from the

taxes imposed under this article. For purposes of this subdivision, the

term "Internet access service" shall mean the service of providing

connection to the Internet, but only where such service entails the

routing of Internet traffic by means of accepted Internet protocols. The

provision of communication or navigation software, an e-mail address,

e-mail software, news headlines, space for a website and website

services, or other such services, in conjunction with the provision of

such connection to the Internet, where such services are merely

incidental to the provision of such connection, shall be considered to

be part of the provision of Internet access service.

* (w) Receipts from the sale of gas or electricity or gas or electric

service of whatever nature and consideration given or contracted to be

given for, or for the use of, gas or electricity or gas or electric

service of whatever nature purchased for use or consumption directly and

exclusively to provide gas or electric service of whatever nature

consisting of operating a gas pipeline or gas distribution line or an

electric transmission or distribution line and ensuring the necessary

working pressure in an underground gas storage facility shall be exempt

from sales and compensating use taxes imposed by this article. Such

exempt gas or electricity or gas or electric service of whatever nature

shall include, but shall not be limited to, such gas or electricity or

gas or electric service of whatever nature used or consumed directly and

exclusively to (1) ensure necessary working pressure in a gas pipeline

used to transport, transmit or distribute gas, (2) operate compressors

used to transport, transmit or distribute gas through such a gas

pipeline or distribution line or used to ensure necessary working

pressure in such a storage facility, (3) operate heaters to prevent gas

in such a pipeline or distribution line from freezing, (4) operate

equipment which removes impurities and moisture from gas in such a

pipeline or distribution line, (5) operate substations and equipment

related to electric transmission and distribution lines such as

transformers, capacitors, meters, switches, communication devices and

heating and cooling equipment, and (6) ensure the reliability of

electricity or electric service transmitted or distributed through such

lines, for example, by operating reserve capacity machinery and

equipment.

* NB There are 2 sub. (w)'s

* (w) Receipts from sales by a senior citizen independent housing

community of food or drink (other than beer, wine or other alcoholic

beverages) for consumption on the premises of such community (1) to its

residents and (2) to guests of such residents, provided that the dining

facility where food and drink is served to such residents and their

guests is not open to the public, shall be exempt from the tax imposed

by subdivision (d) of section eleven hundred five of this article,

provided that any such food or drink shall be exempt only where it is

served at the dining facility at such community or served to the

residents or the residents' guests in the residents' rooms. For the

purposes of this subdivision, the term "senior citizen" means a person

at least fifty-five years of age and the term "senior citizen

independent housing community" means a residential facility, with or

without additional facilities such as recreational facilities, which is

designed for senior citizens, the residents of which are senior

citizens, spouses of such senior citizens or any other person, not

necessarily related, who has resided with a senior citizen for at least

six months and persons hired to provide live-in, long term care to a

resident and who are actually providing such care to such a resident for

compensation. Nothing in this subdivision shall be construed to apply to

food or drink sold or served at a hotel, motel, rooming house or other

similar establishment or at a restaurant, tavern or other similar

establishment. The exemption provided by this subdivision shall not be

construed to apply to food or drink sold through vending machines.

* NB There are 2 sub. (w)'s

(x) Receipts from every sale of, and consideration given or contracted

to be given for, or for the use of, the following tangible personal

property and services shall be exempt from the taxes imposed by this

article:

(1) Tangible personal property for use or consumption directly and

predominantly in production of live dramatic or musical arts

performances in a theater or other similar place of assembly (but not

including a roof garden, cabaret or other similar place), with a seating

capacity of one hundred or more chairs that are rigidly anchored to the

construction or fixed in place so as to prevent movement in any

direction, but only where it can be shown at the time such tangible

personal property is purchased that such performances are to be

presented to the public in such theater or other similar place on a

regular basis of at least five performances per week for a period of at

least two consecutive weeks, the content of each such performance shall

be the same and a charge is or is to be made for admission to the place

where such performances occur. For purposes of this subdivision, the

term "place of assembly" shall mean a place of assembly with a stage in

which scenery and scenic elements are used, as described in section

27-232 and subdivision (a) of section 27-255 of the administrative code

of the city of New York (as such section and subdivision exist on

January first, nineteen hundred ninety-eight), and for which an approved

seating plan is required to be kept, as described in section 27-528 of

the administrative code of the city of New York (as such section exists

on January first, nineteen hundred ninety-eight), whether or not such

theater or other similar place is located in such city. Nothing in this

paragraph shall be construed to exempt tangible personal property which

is permanently affixed to, or becomes an integral component part of, a

structure, building, or real property.

(2) Services described in paragraph two or three of subdivision (c) of

section eleven hundred five of this article when rendered with respect

to property exempt under paragraph one of this subdivision.

(y) Services otherwise taxable under paragraph three, five or eight of

subdivision (c) of section eleven hundred five or under section eleven

hundred ten of this article shall be exempt from any tax imposed

pursuant to such provisions where such services are rendered directly to

or in relation to the property exempt from tax pursuant to paragraph

thirty-seven of subdivision (a) of this section, provided however where

any such services are rendered to property or in relation to property

which was in part not exempt under such paragraph thirty-seven, the

commissioner shall provide for a method of allocation to exempt a

portion of such services.

(aa)(1) The following services shall be exempt when rendered to a

broadcaster in connection with its broadcasting business:

(i) The services described in paragraph two of subdivision (c) of

section eleven hundred five of this article and the services of editing,

dubbing, and mixing when performed in connection with the production,

post-production or transmission of live or recorded programs described

in subparagraph (A) of paragraph thirty-eight of subdivision (a) of this

section.

(ii) The services described in paragraph three of subdivision (c) of

section eleven hundred five of this article when performed on the

tangible personal property described in paragraph thirty-eight of

subdivision (a) of this section.

(iii) The services described in paragraph five of subdivision (c) of

section eleven hundred five of this article when performed on property

described in paragraph thirty-eight of subdivision (a) of this section

which subsequent to its installation has become an addition or capital

improvement to real property, property or land, as such terms are

defined in the real property tax law.

(2) For purposes of this subdivision: the terms "broadcaster",

"programs", and "recorded programs" shall have the same meaning as that

ascribed to those terms in subparagraph (C) of paragraph thirty-eight of

subdivision (a) of this section.

(bb) 1. Receipts from the sale of services described in paragraph two

or three of subdivision (c) of section eleven hundred five of this

article, and consideration given or contracted to be given for, or for

the use of, such services, shall be exempt from tax under this article

when rendered with respect to property exempt under paragraph

thirty-nine of subdivision (a) of this section.

2. Fuel, gas, electricity, refrigeration and steam, and gas, electric,

refrigeration and steam service of whatever nature for use or

consumption directly and exclusively in the production of a film for

sale, as described in paragraph thirty-nine of subdivision (a) of this

section, shall be exempt from the taxes imposed under subdivisions (a)

and (b) of section eleven hundred five and the compensating use tax

imposed under section eleven hundred ten of this article.

(cc) Notwithstanding any other provision of law to the contrary,

receipts from the sale of mobile telecommunications service by a home

service provider shall be exempt from the taxes imposed by subparagraph

(B) of paragraph one and paragraph two of subdivision (b) of section

eleven hundred five of this article if the mobile telecommunications

customer's place of primary use is within a taxing jurisdiction outside

this state.

(dd) (1) Services otherwise taxable under paragraph three of

subdivision (c) of section eleven hundred five or under section eleven

hundred ten of this article, and tangible personal property purchased

and used by the person who sells such services in performing such

services, where such property becomes a physical component part of the

property upon which the services are performed or where such property is

a lubricant applied to aircraft, shall be exempt from tax under this

article where such services are performed on aircraft.

(2) The service of storing an aircraft provided by a person who sells

a service exempt under paragraph one of this subdivision, when such

storing is rendered in conjunction with, and during the rendering of,

such service to such aircraft, shall be exempt from the tax imposed

under paragraph four of subdivision (c) of section eleven hundred five

of this article.

* (ee) The following shall be exempt from tax under this article: (1)

Receipts from the retail sale of, and consideration given or contracted

to be given for, or for the use of, residential solar energy systems

equipment and the service of installing such systems. For the purposes

of this subdivision, "residential solar energy systems equipment" shall

mean an arrangement or combination of components installed in a

residence that utilizes solar radiation to produce energy designed to

provide heating, cooling, hot water and/or electricity. Such arrangement

or components shall not include equipment that is part of a non-solar

energy system or which uses any sort of recreational facility or

equipment as a storage medium.

(2) Receipts from the sale of electricity by a person primarily

engaged in the sale of solar energy system equipment and/or electricity

generated by such equipment pursuant to a written agreement under which

such electricity is generated by residential solar energy system

equipment that is: (A) owned by a person other than the purchaser of

such electricity; (B) installed on residential property of the purchaser

of such electricity; and (C) used to provide heating, cooling, hot water

or electricity to such property.

* NB There are 2 sb (ee)'s

* (ee) (1) Tangible personal property purchased by a tenant for use

directly and exclusively to furnish and equip the tenant's leased

premises for use as commercial office space shall be exempt from the

taxes imposed by sections eleven hundred five and eleven hundred ten of

this article. Provided, however, no exemption shall exist under this

paragraph unless such tangible personal property is to become an

integral component part of the building in which such leased premises

are located.

(2) Tangible personal property purchased by a tenant or landlord for

use directly and exclusively in adding to, altering or improving the

tenant's leased premises for use as commercial office space shall be

exempt from the taxes imposed by sections eleven hundred five and eleven

hundred ten of this article. Provided, however, no exemption shall exist

under this paragraph unless such tangible personal property is to become

an integral component part of the building in which such leased premises

are located.

(3) Tangible personal property sold to a contractor, subcontractor or

repairperson for use directly and exclusively in adding to, altering or

improving a tenant's leased premises for use as commercial office space

shall be exempt from the taxes imposed by sections eleven hundred five

and eleven hundred ten of this article. Provided, however, no exemption

shall exist under this paragraph unless such tangible personal property

is to become an integral component part of the building in which such

leased premises are located.

(4) The service of installing property exempt under paragraph one or

two of this subdivision shall be exempt from the tax imposed by

paragraph three of subdivision (c) of section eleven hundred five of

this article.

(5) The exemptions in this subdivision shall apply only to purchases

or sales made, uses occurring and services rendered during the period

commencing on the first day of the tenant's lease term and ending one

year later, provided that any such property must be delivered to the

tenant's leased premises for use at or in such premises, and such

services must be rendered there in full, no later than ninety days after

the end of such year; and provided, further, that, with respect to

leased or rented tangible personal property, such exemptions shall apply

only to lease or rental payments required to be paid during such year.

Nothing in this subdivision shall be construed to exempt tangible

personal property for use in erecting or adding to a structure or

building of a landlord.

(6) When applying the exemptions in paragraphs one and two of this

subdivision with respect to leased premises located in the World Trade

Center site, the world financial center and the Battery Park city area,

such paragraphs shall be read without regard to the requirement set

forth in the last sentence of each such paragraph that tangible personal

property is to become an integral component part of the building in

which such leased premises are located.

(7) For purposes of this subdivision:

(A) "Tenant" means a person who, as lessee, enters into a space lease

with a landlord for a term of ten years or more commencing on or after

September first, two thousand five, but not later than, in the case of a

space lease with respect to leased premises located in eligible areas as

defined in clause (i) of subparagraph (D) of this paragraph, September

first, two thousand twenty-seven and, in the case of a space lease with

respect to leased premises located in eligible areas as defined in

clause (ii) of subparagraph (D) of this paragraph not later than

September first, two thousand twenty-nine, of premises for use as

commercial office space in buildings located or to be located in the

eligible areas. A person who currently occupies premises for use as

commercial office space under an existing lease in a building in the

eligible areas shall not be eligible for exemption under this

subdivision unless such existing lease, in the case of a space lease

with respect to leased premises located in eligible areas as defined in

clause (i) of subparagraph (D) of this paragraph expires according to

its terms before September first, two thousand twenty-seven or such

existing lease, in the case of a space lease with respect to leased

premises located in eligible areas as defined in clause (ii) of

subparagraph (D) of this paragraph and such person enters into a space

lease, for a term of ten years or more commencing on or after September

first, two thousand five, of premises for use as commercial office space

in a building located or to be located in the eligible areas, provided

that such space lease with respect to leased premises located in

eligible areas as defined in clause (i) of subparagraph (D) of this

paragraph commences no later than September first, two thousand

twenty-seven, and provided that such space lease with respect to leased

premises located in eligible areas as defined in clause (ii) of

subparagraph (D) of this paragraph commences no later than September

first, two thousand twenty-nine and provided, further, that such space

lease shall expire no earlier than ten years after the expiration of the

original lease.

(B) "Leased premises" means the premises within a building to be used

as commercial office space under a lease described in subparagraph (A)

of this paragraph, excluding any common areas and any other area outside

such office space.

(C) "Landlord" means the person, unrelated by ownership to a tenant,

who leases leased premises to that tenant.

(D) "Eligible areas" mean: **(i) the area in the borough of Manhattan

bounded by Murray street on the north starting at the intersection of

West street and Murray street; running easterly along the center line of

Murray street, connecting through City Hall Park with the center line of

Frankfort street and running easterly along the center lines of

Frankfort and Dover streets to the intersection of Dover street and

South street; running southerly along the center line of South street to

Peter Minuit Plaza; connecting through Peter Minuit Plaza to the center

line of State street and running northwesterly along the center line of

State street to the intersection of State street and Battery Place;

running westerly along the center line of Battery Place to the

intersection of Battery Place and West street; and running northerly

along the center line of West street to the intersection of West street

and Murray street. In addition, "eligible area" shall include the

"Battery Park project area" as defined in section nineteen hundred

seventy-two of the public authorities law, including the world financial

center. Any tax lot that is partly located inside the eligible area

shall be deemed to be entirely located inside such area, and

** NB Repealed December 1, 2028

(ii) the World Trade Center site, the World financial center and the

Battery Park city area as defined as follows:

(a) "World Trade Center site" means the area of the former complex of

seven buildings (known as numbers one through seven world trade center)

around a central plaza, near the south end of the county of New York in

the downtown financial district, which were destroyed or damaged beyond

repair in the attacks of September eleventh, two thousand one.

(b) "World financial center" means the complex of buildings known as

numbers one through four world financial center, in an area in the

county of New York bordered by West street, the Hudson River, and Vesey

and Liberty streets.

(c) "Battery Park city area" means the "Battery Park project area" as

defined in section nineteen hundred seventy-two of the public

authorities law, including the world financial center.

(8) Notwithstanding any provision of law to the contrary, this

subdivision shall also apply to the taxes imposed by section eleven

hundred seven and the taxes imposed by section eleven hundred nine of

this article, but shall not apply to the taxes imposed by section eleven

hundred eight of this article or pursuant to the authority of article

twenty-nine of this chapter other than taxes imposed by a city of a

million or more pursuant to the authority of subdivision (a) of section

twelve hundred ten of such article twenty-nine.

* NB Repealed December 1, 2030

* NB There are 2 sb (ee)'s

(ff) Receipts from retail sales of tangible personal property by any

gift shop located in a veteran's home described in title thirty-eight of

the United States Code shall be exempt from the taxes imposed by this

article.

(gg) (1) Receipts from the sale of an electronic news service and

consideration given or contracted to be given for, or for the use of, an

electronic news service shall be exempt from the taxes imposed by

paragraph one or nine of subdivision (c) of section eleven hundred five

of this article and clause (C) of subdivision (a) of section eleven

hundred ten of this article if the receipts from the sale of, or the

consideration given for, or for the use of, the electronic news service

does not exceed the cap amount as defined in subparagraph (ii) of

paragraph thirty-seven of subdivision (b) of section eleven hundred one

of this article. If the subscription period of the electronic news

service is other than a year, the cap amount shall be adjusted

proportionately in determining whether the subscription price exceeds

the cap amount. If the contract for the sale of the electronic news

service grants more than one person the right to view the electronic

news service, the receipts from the sale of, or the consideration given

for, or for the use of, the service will be deemed not to exceed the cap

amount only if the listed selling price for an individual subscription

on the day the contract commences does not exceed the cap amount.

(2) Receipts from the sale of an electronic periodical and

consideration given, or contracted to be given for, or for the use of,

an electronic periodical shall be exempt from the taxes imposed by

paragraph one or nine of subdivision (c) of section eleven hundred five

and clause (C) of subdivision (a) of section eleven hundred ten of this

article.

(3) If an electronic periodical is sold together with any other

components that are taxable under this article (other than an electronic

news service) for a single price, the exemption in paragraph two of this

subdivision shall not apply to the receipts from the sale of, or

consideration given, or contracted to be give for, or for the use of,

the electronic periodical and such other components unless the vendor

sells such electronic periodical and such other components separately in

the regular course of business. If the requirement in the preceding

sentence is satisfied, then the exemption will apply to an amount equal

to the bundled price multiplied by a fraction, the numerator of which is

the price of the electronic periodical when sold separately and the

denominator of which is the sum of the price of the electronic

periodical when sold separately and the price of the other components of

the transaction when sold separately.

(4) If an electronic news service is sold together with other

components for a single price, the exemption in paragraph one of this

subdivision shall not apply to the receipts from the sale of, or

consideration given, or contracted to be given, for, or for the use of,

the electronic news service and the other components in the transaction

unless one of the following exceptions applies and only to the extent

indicated:

(i) The provider of the electronic news service does not separately

sell the electronic news service in the regular course of business, the

other components are not taxable under this article, and the bundled

price is less than the cap amount, in which case the exemption applies

to the full bundled price; or

(ii) The provider of the electronic news service sells the electronic

news service and each of the other components of the transaction

separately in the regular course of business, whether or not the

components are taxable under this article, and the separate price of the

electronic news service does not exceed the cap amount. If the

conditions in this subparagraph are met, the exemption provided by

paragraph one of this subdivision will apply only to an amount equal to

the bundled price multiplied by a fraction, the numerator of which is

the price of the electronic news service when sold separately in the

regular course of business, and the denominator of which is the sum of

the price of the electronic news service when sold separately in the

regular course of business and the prices of the other components when

sold separately in the regular course of business; provided, however,

that in no case shall the exempt amount be greater than the amount of

the charge for the electronic news service when sold separately in the

regular course of business.

(5) For the purposes of this subdivision "bundled price" means the

price at which an electronic news service or an electronic periodical is

sold together with any other components for one price; and "component"

means any property, service, or other item of whatever nature that is

sold together with an electronic news service or electronic periodical

for one price.

(6) Nothing in this subdivision shall exempt, or be construed to

exempt, any separate charge by the vendor of an electronic news service

or electronic periodical for other information services, or any other

property or service subject to tax under this article, that does not

constitute an electronic news service or electronic periodical.

(hh) Receipts from the sale of transportation service consisting of a

HAIL vehicle trip, as the term "HAIL vehicle trip" is defined in article

twenty-nine-A of this chapter, shall be exempt from the tax imposed by

paragraph ten of subdivision (c) of section eleven hundred five of this

article, if such trip originates in a city of a million or more and

terminates anywhere within the territorial boundaries of the

metropolitan commuter transportation district and is subject to the tax

on HAIL vehicle trips imposed by such article twenty-nine-A.

* (ii) The following shall be exempt from tax under this article: (1)

Receipts from the retail sale of, and consideration given or contracted

to be given for, or for the use of, commercial solar energy systems

equipment and the service of installing such systems. For the purposes

of this subdivision, "commercial solar energy systems equipment" shall

mean an arrangement or combination of components installed upon

non-residential premises that utilize solar radiation to produce energy

designed to provide heating, cooling, hot water and/or electricity. Such

arrangement or components shall not include equipment that is part of a

non-solar energy system.

(2) Receipts from the sale of electricity by a person primarily

engaged in the sale of solar energy system equipment and/or electricity

generated by such equipment pursuant to a written agreement under which

the electricity is generated by commercial solar energy system equipment

that is: (A) owned by a person other than the purchaser of such

electricity; (B) installed on the non-residential premises of the

purchaser of such electricity; and (C) used to provide heating, cooling,

hot water or electricity to such premises.

* NB There are 2 sb (ii)'s

* (ii) Receipts from sales of and fees associated with water and sewer

service line protection programs sold to owners of residential property

shall be exempt from the taxes imposed by this article.

* NB There are 2 sb (ii)'s

* (jj) Notwithstanding any other provision of this article: (1)

Receipts in excess of two hundred thirty thousand dollars from every

sale of, and consideration given or contracted to be given for, or for

the use of, a vessel shall be exempt from the taxes imposed by this

article. For purposes of this subdivision, "vessel" shall have the same

meaning as such term is defined in section twenty-two hundred fifty of

the vehicle and traffic law and any outboard motor or trailer, as

defined in section one hundred fifty-six of such law, when sold in

conjunction with such vessel.

(2) For purposes of subdivision (b) of section eleven hundred eleven

of this article, the purchase price, current market value, or fair

rental value, as the case may be, of a vessel purchased by a resident of

New York state outside of this state for use outside of this state that

subsequently becomes subject to the compensating use tax imposed under

this article shall be deemed not to exceed two hundred thirty thousand

dollars.

(3) For purposes of subdivision (i) of section eleven hundred eleven

of this article, receipts from, or consideration given or contracted to

be given for, the lease of a vessel that is subject to such subdivision

(i) in excess of two hundred thirty thousand dollars shall be exempt

from the calculation of tax due under such subdivision (i).

(4) For purposes of paragraph one of subdivision (q) of section eleven

hundred eleven of this article, the limitations on exclusions from the

definition of retail sale in paragraph one of such subdivision shall

apply only to the first two hundred thirty thousand dollars of receipts

from every sale of, or consideration given or contracted to be given

for, or for the use of, a vessel.

(5) For purposes of paragraph two of subdivision (q) of section eleven

hundred eleven of this article, the purchase price or market value, as

the case may be, of a vessel subject to tax under paragraph two of such

subdivision (q) shall be deemed not to exceed two hundred thirty

thousand dollars.

(6) For purposes of subdivision two of section eleven hundred eighteen

of this article, the limitation on the exclusion from compensating use

tax in such subdivision two with respect to qualified property, as

defined in such subdivision, shall apply only to the first two hundred

thirty thousand dollars of consideration given or contracted to be given

for, or for the use of, a vessel.

(7) For purposes of paragraph (a) of subdivision seven of section

eleven hundred eighteen of this article, the refund or credit allowable

under paragraph (a) of such subdivision seven shall be computed only

with regard to tax legally due and paid to another state on the first

two hundred thirty thousand dollars of the purchase price.

(8) Except as otherwise provided herein, this subdivision shall not be

deemed to limit any other exemption, exclusion or credit in this article

relating to a vessel.

* NB There are 2 sb (jj)'s

* (jj) Tangible personal property or services otherwise taxable under

this article sold to a related person shall not be subject to the taxes

imposed by section eleven hundred five of this article or the

compensating use tax imposed under section eleven hundred ten of this

article where the purchaser can show that the following conditions have

been met to the extent they are applicable: (1)(i) the vendor and the

purchaser are referenced as either a "covered company" as described in

section 243.2(f) or a "material entity" as described in section 243.2(l)

of the Code of Federal Regulations in a resolution plan that has been

submitted to an agency of the United States for the purpose of

satisfying subparagraph 1 of paragraph (d) of section one hundred

sixty-five of the Dodd-Frank Wall Street Reform and Consumer Protection

Act (the "Act") or any successor law, or (ii) the vendor and the

purchaser are separate legal entities pursuant to a divestiture directed

pursuant to subparagraph 5 of paragraph (d) of section one hundred

sixty-five of such act or any successor law; (2) the sale would not have

occurred between such related entities were it not for such resolution

plan or divestiture; and (3) in acquiring such property or services, the

vendor did not claim an exemption from the tax imposed by this state or

another state based on the vendor's intent to resell such services or

property. A person is related to another person for purposes of this

subdivision if the person bears a relationship to such person described

in section two hundred sixty-seven of the internal revenue code. The

exemption provided by this subdivision shall not apply to sales made,

services rendered, or uses occurring after June thirtieth, two thousand

twenty-five, except with respect to sales made, services rendered, or

uses occurring pursuant to binding contracts entered into on or before

such date; but in no case shall such exemption apply after June

thirtieth, two thousand twenty-eight.

* NB There are 2 sb (jj)'s

* (kk) Rent paid by a room remarketer to an operator that is not a

room remarketer for an occupancy that the room remarketer intends to

provide to an occupant for rent shall be exempt from the hotel unit fee

imposed by section eleven hundred four of this article and the tax

imposed by subdivision (e) of section eleven hundred five of this

article, provided that such room remarketer furnishes such operator a

certificate in such form and containing such information as may be

prescribed by the commissioner. The exemption certificate provided for

by this subdivision shall be administered by the commissioner in

conformity with the rules for exemption or resale certificates in

subparagraph (i) of paragraph one of subdivision (c) of section eleven

hundred thirty-two of this article.

* NB There are 2 sb (kk)'s

* (kk) The following shall be exempt from tax under this article: (1)

Receipts from the retail sale of, and consideration given or contracted

to be given for, or for the use of, commercial fuel cell electricity

generating systems equipment and the service of installing and

maintaining such systems. For the purposes of this subdivision, "fuel

cell electricity generating systems equipment" shall mean an electric

generating arrangement or combination of components installed upon

non-residential premises that utilize solid oxide, molten carbonate,

proton exchange membrane or phosphoric acid fuel cell, or for the

purposes of this section only, linear generator.

(2) Receipts from the sale of hydrogen gas or electricity by a person

primarily engaged in the sale of fuel cell electricity generating system

equipment and/or electricity generated by such equipment pursuant to a

written agreement under which the electricity is generated by commercial

fuel cell electricity generating system equipment that is: (A) owned by

a person other than the purchaser of such electricity; (B) installed on

the non-residential premises of the purchaser of such electricity; (C)

placed in service; and (D) used to provide heating, cooling, hot water

or electricity to such premises.

* NB There are 2 sb (kk)'s

* (ll) The following shall be exempt from tax under this article: (1)

Receipts from the retail sale of, and consideration given or contracted

to be given for, or for the use of, residential energy storage systems

equipment and the service of installing such systems. For the purposes

of this subdivision, "residential energy storage systems equipment"

shall mean an arrangement or combination of components installed in a

residence that stores electricity for use at a later time to provide

heating, cooling, hot water and/or electricity.

(2) Receipts from the sale of electricity by a person primarily

engaged in the sale of energy storage system equipment and/or

electricity generated by such equipment pursuant to a written agreement

under which such electricity is generated by residential energy system

storage equipment that is: (A) owned by a person other than the

purchaser of such electricity; (B) installed on residential property of

the purchaser of such electricity; and (C) used to provide heating,

cooling, hot water or electricity.

* NB Repealed June 1, 2028