2023 New York Laws › TAX - Tax › Article 13-A - Tax on Petroleum Businesses › 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.