N.Y. Tax Law § 301-d: Utility credit or reimbursement

§ 301-d. Utility credit or reimbursement. (a) Gallonage eligible for

credit or reimbursement. An electric corporation, as defined in

subdivision thirteen of section two of the public service law, subject

to the supervision of the department of public service, shall be

entitled to a credit against the tax imposed by section three hundred

one-a of this article or a reimbursement of such tax with respect to the

following gallonage:

(1) Credit. Residual petroleum product and non-highway diesel motor

fuel (i) imported into this state by such electric corporation which is

a petroleum business where the tax liability under section three hundred

one-a of this article is imposed on such electric corporation and where

the residual petroleum or non-highway diesel product so imported is used

by such electric corporation to fuel generators for the purpose of

manufacturing or producing electricity or (ii) purchased in this state

by such electric corporation by the use of a valid direct payment permit

whereby such electric corporation assumed full liability for tax with

respect to such product where such product so purchased is used by such

electric corporation to fuel generators for the purpose of manufacturing

or producing electricity.

(2) Reimbursement. Residual petroleum product and non-highway diesel

motor fuel purchased in this state by such electric corporation where

the tax imposed by section three hundred one-a of this article with

respect to such residual petroleum or diesel product was paid and the

utility absorbed such tax in the purchase price of such fuel and where

such product is used by such electric corporation to fuel generators for

the purpose of manufacturing or producing electricity.

(b) Calculation. The amount of the credit or reimbursement shall be

determined by multiplying the gallonage of the residual petroleum

product eligible for the credit or reimbursement times the basic credit

or reimbursement per gallon of two and ninety-eight hundredths cents and

by multiplying the gallonage of all diesel product eligible for credit

or reimbursement times the basic credit or reimbursement per gallon of

three cents. The basic credit or reimbursement per gallon for residual

petroleum product and diesel product shall be adjusted at the same time

and in the same manner as set forth in subdivisions (f) and (g) of

section three hundred one-a of this article for the motor fuel and

diesel motor fuel rate and the residual petroleum product rate. All the

provisions of subdivision (h) of such section shall apply to such

adjusted credit or reimbursement and such adjusted credit or

reimbursement shall be published at the same time and in the same manner

as such rates are published. The credit or reimbursement determined

pursuant to this section shall be rounded to the nearest one-hundredth

of a cent. Provided, however, that on April first, nineteen hundred

ninety-nine, there shall be added to the basic credit or reimbursement

amount, with respect to both residual petroleum product and diesel

product, as then adjusted and in effect, the amount of one-half cent. On

the immediately following first day of January and each January

thereafter, there shall be added to the basic credit or reimbursement

amount, with respect to both residual petroleum product and diesel

product, as then adjusted and in effect on such date (determined with

respect to the basic credit or reimbursement amount only, without

reference to such one-half cent), the amount of one-half cent.

(c) Application of the credit or reimbursement. The credit shall be

applied against liability for tax under this article for the same period

during which the credit arose. Any excess may then be applied to tax

liability under this article for subsequent periods.

(d) Any reimbursement of tax may be applied for not more often than

monthly. An electric corporation entitled to reimbursement under this

section, in lieu of such reimbursement, may take credit therefor on a

return filed under this article.