§ 4-f. Credit relating to certain sales and compensating use taxes on
electricity used in manufacturing, processing or assembling. (1) (a) In
addition to any other credit allowed by this part, a taxpayer shall be
allowed a credit against the tax imposed by this part to be credited or
refunded in the manner hereinafter provided in this section. The amount
of such credit shall be equal to the amount of sales and compensating
use taxes imposed by section eleven hundred seven of the tax law during
the taxpayer's taxable year which became legally due on or after and was
paid on or after July first, nineteen hundred eighty-four, less any
credits or refunds of such taxes, with respect to the purchase or use by
the taxpayer of electricity or electric service of whatever nature for
use or consumption directly and exclusively in the production of
tangible personal property for sale by manufacturing, processing or
assembling. Provided, however, the amount of the credit allowed by this
paragraph shall be reduced by the amount of any rebate or rebates
received during the taxpayer's taxable year pursuant to a local law
enacted in accordance with article two-G of the general city law.

(b) In addition to any other credit allowed by this part, a taxpayer
shall be allowed a credit against the tax imposed by this part to be
credited or refunded in the manner hereinafter provided in this
subdivision. The amount of such credit shall be equal to the percentage
specified below of the amount of sales and compensating use taxes
imposed by section eleven hundred seven of the tax law during the
taxpayer's taxable year which became legally due on or after and was
paid on or after July first, nineteen hundred eighty-eight, less any
credit or refund of such taxes, with respect to the purchase or use by a
non-residential energy user, as such term is defined in article two-G of
the general city law, of electricity or electric service purchased at
retail from the power authority of the state of New York or the port
authority of the state of New York and New Jersey, provided, however,
that no credit shall be allowed with respect to purchases from such port
authority unless it shall be an "eligible vendor of energy services", as
defined in paragraph one of subdivision (c) of section twenty-five-v of
the general city law, and shall have obtained a certification of
eligibility in accordance with subdivision (b) of section twenty-five-w
of such law; during the period commencing July first, nineteen hundred
eighty-eight and ending June thirtieth, nineteen hundred eighty-nine the
credit shall be in an amount equal to twenty-five per centum of such
sales and compensating use taxes imposed; during the period commencing
July first, nineteen hundred eighty-nine and ending June thirtieth,
nineteen hundred ninety the credit shall be in an amount equal to fifty
per centum of such taxes imposed; during the period commencing July
first, nineteen hundred ninety and ending June thirtieth, nineteen
hundred ninety-one the credit shall be in an amount equal to
seventy-five per centum of such taxes imposed; and during the period
commencing July first, nineteen hundred ninety-one and thereafter the
credit shall be in an amount equal to one hundred per centum of such
taxes imposed.

(c) In addition to any other credit allowed by this part, a taxpayer
shall be allowed a credit against the tax imposed by this part to be
credited or refunded in the manner hereinafter provided in this
subdivision. The amount of such credit shall be equal to the percentage
specified below of the amount of sales and compensating use taxes
imposed by section eleven hundred seven of the tax law during the
taxpayer's taxable year which became legally due on or after and was
paid on or after July first, nineteen hundred eighty-eight, less any
credit or refund of such taxes, with respect to the purchase or use by a
non-residential fuel user of fuel or fuel service except fuel used to
operate motor vehicles; during the period commencing July first,
nineteen hundred eighty-eight and ending June thirtieth, nineteen
hundred eighty-nine the credit shall be in an amount equal to
twenty-five per centum of such sales and compensating use taxes imposed,
during the period commencing July first, nineteen hundred eighty-nine
and ending June thirtieth, nineteen hundred ninety the credit shall be
in an amount equal to fifty per centum of such taxes imposed; during the
period commencing July first, nineteen hundred ninety and ending June
thirtieth, nineteen hundred ninety-one the credit shall be in an amount
equal to seventy-five per centum of such taxes imposed; and during the
period commencing July first, nineteen hundred ninety-one and thereafter
the credit shall be in an amount equal to one hundred per centum of such
taxes imposed. For purposes of this paragraph, the term "non-residential
fuel user" shall mean any non-residential user of fuel, except a
government agency or instrumentality thereof, public benefit
corporation, or any entity that is exempt from the sales tax imposed
pursuant to section eleven hundred seven of the tax law, provided that
the term "non-residential fuel user" shall not include an owner or
operator of residential income producing property, except a hotel.

(2) The credit allowed under this section for any taxable year shall
be deemed to be an overpayment of tax by the taxpayer to be credited or
refunded, without interest, in accordance with the provisions of section
seventy-seven of this title.

(3) Where the taxpayer receives a refund or credit of any tax imposed
under section eleven hundred seven of the tax law for which the taxpayer
had claimed a credit under the provisions of this section in a prior
taxable year, the amount of such tax refund or credit shall be added to
the tax imposed by section three of this part, and such amount shall be
subtracted in computing entire net income for the taxable year.