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Form NYC-114.5 - 2000

Page 2

SCHEDULE A

Sales and compensating use tax credit

1. Cost of electricity or electric service purchased or used during tax year eligible for sales and

compensating use tax credit under Section 11-503(g)(1)(A) of the Administrative Code

(see instructions)

.......................................................................................................................................................

2. Purchase price or cost of use of services of installing, repairing, maintaining or servicing

machinery, equipment, parts, tools or supplies used in production ..............................................2.

3. Sales and compensating use taxes, imposed during tax year, on costs included in line 1 under

Section 1107 Tax Law and paid (see instructions and attach schedule)

................................................

4. Sales and compensating use taxes paid on costs included in line 2 (see instructions) ................4.

5. Less: credits or refunds of taxes included in lines 3 and 4 (see instructions)

......................................

6. Claim for New York City sales tax credit (enter on page 1, parts I and II, lines 1 and 4)

..................

NSTRUCTIONS FOR SCHEDULE A

Sections 11-503(g) and 11-503(k) of the

In addition, submit a schedule, as outlined

credit for that payment. A credit may be

Administrative Code allow a taxpayer a credit

below, giving the details of the credit request-

claimed for the interest paid in connection

equal to the amount of sales and compensating

ed. The credit claimed should be 4% of the

with the State determination of sales or com-

use taxes:

total of the column entitled “qualifying elec-

pensating use tax for services performed on

tricity cost.” Below is an example of headings

eligible machinery, parts and tools but not for

1) imposed by Section 1107 of the State Tax

interest paid with respect to the sales tax on

which could be used in such a schedule.

Law during the taxpayer’s taxable year which

electricity or electric service. No credit may

became legally due during the tax year and

INVOICE

TOTAL INVOICED

QUALIFYING %

be claimed for penalties paid with respect to

were paid, less any credit or refund, with

DATE

KILOWATT HOURS

FOR PERIOD

these taxes.

respect to the purchase or use by the taxpayer

COST OF ELECTRICITY

QUALIFYING

of electricity or electric service (but not gas) of

FOR INVOICE PERIOD

ELECTRICITY COST

To claim the credit in these circumstances, an

whatever nature for use or consumption direct-

amended Unincorporated Business Tax

ly and exclusively in the production of tangible

Return (Form NYC-202 or Form NYC-204) or

NOTE: If you neglected to claim a sales tax

personal property for sale by manufacturing,

Claim for Refund (Form NYC-113) must be

credit in the period in which the sales tax

processing or assembling.

filed for the taxable year (or years) for which

became legally due, you cannot claim the cred-

such sales or compensating use taxes were

it for the current tax year. Instead, you must

2) imposed by Section 1107 of the State Tax

determined to be due, accompanied by a com-

file a claim for a refund on Form NYC-113 and

Law during the taxpayer’s taxable year and

pleted Form NYC-114.5. A taxpayer who can-

attach a revised Form NYC-114.5.

paid, less any credit or refund, with respect to

not supply the detailed schedule required in

the purchase or use of the services of

Section 11-503(d) of the Administrative Code

the instructions for line 3 or 4 should instead

installing, repairing, maintaining or servicing

allows a credit for sales and use tax paid after

submit copies of the State determination and

machinery, equipment, parts, tools or supplies

July 1, 1977, on the purchase or use of machin-

all supporting audit work papers, and a copy of

used directly and predominantly in the pro-

ery or equipment in production. Those pur-

the cancelled check or other evidence of pay-

duction of tangible personal property, gas,

chases were exempted from sales and use tax

ment of the State determination.

electricity, refrigeration or steam for sale, or

effective December 1, 1989.

certain telephone central office equipment or

SCHEDULE A SUPPLEMENT

If the credit claimed is on the purchase of

station apparatus or comparable telegraph

Determining the electricity used in the

machinery or equipment, you must use Form

equipment. Interest paid in connection with

production of tangible personal property

payment of such sales and use taxes will also

114.5 for 1990 or other prior year.

for sale

be allowed as a credit.

LINE 4

NOTE: The services described above in item

When electricity is purchased for consump-

Taxpayers claiming the credit on line 4 must

tion for purposes that qualify for the credit and

2 were exempted from sales and use tax effec-

prepare and attach to Schedule A a rider list-

tive September 1, 1996, however, a credit is

purposes that do not qualify for the credit, and

ing each item and indicating with respect to

the use of the electricity is recorded on a sin-

available for sales and use tax due and paid on

each item, the type of service or maintenance

those services during the current tax year

gle meter, the purchaser may allocate the use

used, the invoice date, the name of the suppli-

of electricity according to its qualifying or

with respect to periods prior to September 1,

er from whom it was purchased, the purchase

1996.

nonqualifying consumption. At such time as

price and the sales and compensating use tax

variations occur affecting the use of electricity

paid.

LINE 1

(e.g., the addition of new equipment), a new

Enter on line 1 the total cost of electric service

allocation should be computed.

LINE 5

eligible for credit.

Enter on line 5 the amount of any credits or

When claiming a sales and compensating use

refunds of sales and compensating use taxes

LINE 3

tax credit under Section 11-503(g) of the

included on lines 3 and 4 received during the

Administrative Code, one of the following

Taxpayers claiming the credit on line 3 must

tax period covered by the return from either a

must be submitted:

prepare and attach to Schedule A a statement

vendor or the New York State Sales Tax

explaining the manufacturing process and the

a) an electrical engineer’s survey, showing

Bureau.

nature and kind of tangible personal property

computations, in substantiation of the allo-

produced for sale. Prepare and attach a sched-

cation made for use of electricity for both

SALES AND USE TAXES PAID

ule showing how you determined the portion

qualifying and nonqualifying purposes;

AS A RESULT OF AN AUDIT

of total electricity usage eligible for sales and

A taxpayer that has paid eligible sales and

b) computations using the guidelines that fol-

compensating use tax credit for electricity or

compensating use taxes as a result of an audit

low. Computations forming the basis for a

electric service. The acceptable methods for

and determination made by the New York

claim for refund or credit should be submit-

computing the allocation of electricity qualify-

State Department of Taxation and Finance

ted with Form NYC-114.5.

ing for credit are detailed on page 3.

may be entitled to claim the sales and use tax

Nyc-114.5 - Claim For Sales Tax Or Reap Credit Applied To Unincorporated Business Tax Page 2

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