New York Sales Tax Credit on Electricity

A sales tax credit opportunity is available for commercial real estate owners (Taxpayer) in New York. The New York State Department of Taxation and Finance issued Advisory Opinion TSB-A-20(64)S which confirms a sales tax credit is available to taxpayers that purchased electricity for resale to tenants.

To qualify for the credit, Taxpayer needs to pay sales tax on the purchase of electricity and collect tax on electricity sold to tenants. The credit is based on actual usage measured by tenant submeters. Electricity purchased for use in commercial common areas or not purchased for resale remains taxable and should be excluded from the credit calculation.

When claiming a credit on New York sales tax returns, taxpayers should also submit the Application for Credit or Refund of Sales Tax (Form AU-11) with supporting documentation as required by the New York State Department of Taxation and Finance.

How Long Can I Claim a Refund?

New York allows taxpayers to claim a credit for overpayments within three years of the original sales tax return due date, or two years of the date tax was paid, whichever is later [N.Y. Tax Law §1139(a)].

Next Steps

If you would like more information about how it may apply to your business, contact us. We're here to help.

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