N.Y. Tax Law § 301-D — Utility credit or reimbursement

§ 301-d. Utility credit or reimbursement. (a) Gallonage eligible for\ncredit or reimbursement. An electric corporation, as defined in\nsubdivision thirteen of section two of the public service law, subject\nto the supervision of the department of public service, shall be\nentitled to a credit against the tax imposed by section three hundred\none-a of this article or a reimbursement of such tax with respect to the\nfollowing gallonage:\n (1) Credit. Residual petroleum product and non-highway diesel motor\nfuel (i) imported into this state by such electric corporation which is\na petroleum business where the tax liability under section three hundred\none-a of this article is imposed on such electric corporation and where\nthe residual petroleum or non-highway diesel product so imported is used\nby such electric corporation to fuel generators for the purpose of\nmanufacturing or producing electricity or (ii) purchased in this state\nby such electric corporation by the use of a valid direct payment permit\nwhereby such electric corporation assumed full liability for tax with\nrespect to such product where such product so purchased is used by such\nelectric corporation to fuel generators for the purpose of manufacturing\nor producing electricity.\n (2) Reimbursement. Residual petroleum product and non-highway diesel\nmotor fuel purchased in this state by such electric corporation where\nthe tax imposed by section three hundred one-a of this article with\nrespect to such residual petroleum or diesel product was paid and the\nutility absorbed such tax in the purchase price of such fuel and where\nsuch product is used by such electric corporation to fuel generators for\nthe purpose of manufacturing or producing electricity.\n (b) Calculation. The amount of the credit or reimbursement shall be\ndetermined by multiplying the gallonage of the residual petroleum\nproduct eligible for the credit or reimbursement times the basic credit\nor reimbursement per gallon of two and ninety-eight hundredths cents and\nby multiplying the gallonage of all diesel product eligible for credit\nor reimbursement times the basic credit or reimbursement per gallon of\nthree cents. The basic credit or reimbursement per gallon for residual\npetroleum product and diesel product shall be adjusted at the same time\nand in the same manner as set forth in subdivisions (f) and (g) of\nsection three hundred one-a of this article for the motor fuel and\ndiesel motor fuel rate and the residual petroleum product rate. All the\nprovisions of subdivision (h) of such section shall apply to such\nadjusted credit or reimbursement and such adjusted credit or\nreimbursement shall be published at the same time and in the same manner\nas such rates are published. The credit or reimbursement determined\npursuant to this section shall be rounded to the nearest one-hundredth\nof a cent. Provided, however, that on April first, nineteen hundred\nninety-nine, there shall be added to the basic credit or reimbursement\namount, with respect to both residual petroleum product and diesel\nproduct, as then adjusted and in effect, the amount of one-half cent. On\nthe immediately following first day of January and each January\nthereafter, there shall be added to the basic credit or reimbursement\namount, with respect to both residual petroleum product and diesel\nproduct, as then adjusted and in effect on such date (determined with\nrespect to the basic credit or reimbursement amount only, without\nreference to such one-half cent), the amount of one-half cent.\n (c) Application of the credit or reimbursement. The credit shall be\napplied against liability for tax under this article for the same period\nduring which the credit arose. Any excess may then be applied to tax\nliability under this article for subsequent periods.\n (d) Any reimbursement of tax may be applied for not more often than\nmonthly. An electric corporation entitled to reimbursement under this\nsection, in lieu of such reimbursement, may take credit therefor on a\nreturn filed under this article.\n