A. 4154                             2
 
 tax paid on gallonage used to propel any such vessel exceeds the  amount
 of  tax  due  based on the tax rate set forth herein. Provided, however,
 that the commissioner shall require such documentary  proof  to  qualify
 for  any  credit or reimbursement provided hereunder as the commissioner
 deems appropriate.
   § 2. Paragraph 3 of subdivision (f) and paragraph 4 of subdivision (g)
 of section 301-a of the tax law are REPEALED.
   § 3. Subdivisions (a) and (d) of section 301-b of the tax law,  subdi-
 vision  (a)  as added by chapter 190 of the laws of 1990, paragraph 5 of
 subdivision (a) as amended by section 3 of part E of chapter 59  of  the
 laws  of  2012,  paragraphs  6,  7  and 8 of subdivision (a) as added by
 section 4 of part W-1 of chapter 109 of the laws of 2006,  and  subdivi-
 sion (d) as amended by section 21 of part K of chapter 61 of the laws of
 2011, are amended to read as follows:
   (a) Products. (1) [Kerosene sold or used by a petroleum business which
 is registered under article twelve-A of this chapter as a distributor of
 diesel  motor  fuel  so long as (i) such product has not been blended or
 mixed with any other product constituting diesel  motor  fuel  or  motor
 fuel  or  a residual petroleum product and (ii) such product is not used
 by the petroleum business as fuel to operate a motor vehicle or sold  by
 such petroleum business to a consumer for use as fuel to operate a motor
 vehicle.
   (2) Kero-jet fuel (i) sold by a petroleum business which is registered
 under  article twelve-A of this chapter as a distributor of diesel motor
 fuel to a consumer for use exclusively as jet  aircraft  fuel  or  to  a
 petroleum business registered under such article twelve-A as a "distrib-
 utor  of  kero-jet  fuel only" where such fixed base operator is engaged
 solely in making or offering to make retail sales not in bulk  of  kero-
 jet  fuel  directly into the fuel tank of an airplane for the purpose of
 operating such airplane, (ii) used by a petroleum  business,  registered
 under  article twelve-A of this chapter as a distributor of diesel motor
 fuel, exclusively as jet aircraft fuel, or (iii) sold at retail  not  in
 bulk  by  a petroleum business registered under article twelve-A of this
 chapter as a "distributor of kero-jet fuel  only"  where  such  fuel  is
 delivered  directly  into the fuel tank of a jet airplane for use in the
 operation of such airplane.
   (3) Aviation gasoline, meeting the specifications set forth in  Ameri-
 can  Standard Testing Material Specification D910 or Military Specifica-
 tion MIL-G-5572, which is imported or caused to be  imported  into  this
 state by a petroleum business which is registered under article twelve-A
 of  this  chapter  as  a distributor of motor fuel or produced, refined,
 manufactured or compounded in this state by such a petroleum business.
   (4) Residual petroleum product sold by a petroleum business registered
 under this article as a residual  petroleum  product  business  if  such
 product  is sold by such petroleum business to a consumer for use exclu-
 sively as bunker fuel for vessels or if such product  is  used  by  such
 petroleum business exclusively as bunker fuel in its own vessels.
   (5) Liquefied petroleum gases, such as butane, ethane or propane.
   (6)]  E85  imported  or  caused  to  be  imported  into  this state or
 produced, refined, manufactured or compounded in this state by a  petro-
 leum  business  registered  under article twelve-A of this chapter, as a
 distributor of motor fuel, and then sold by such petroleum business  and
 delivered  to  a  filling  station  and placed in a storage tank of such
 filling station for such E85 to be dispensed directly into a motor vehi-
 cle for use in the operation of such vehicle.
 A. 4154                             3
 
   [(7)] (i) Partial B20 exemption. B20 imported or caused to be imported
 into this state or produced, refined, manufactured or compounded in this
 state by a petroleum business registered under article twelve-A of  this
 chapter,  as  a  distributor of diesel motor fuel, and then sold by such
 petroleum business.
   (ii)  Calculation  of  partial  exemption.  The  amount of the partial
 exemption under this paragraph shall be determined  by  multiplying  the
 quantity  of  B20 times twenty percent of the applicable taxes otherwise
 imposed by this article on such fuel.
   [(8)] (2) CNG or hydrogen.
   (d) Sales to consumers for heating purposes. [(1)]  Total  residential
 heating  exemption.  Non-highway  diesel  motor fuel sold by a petroleum
 business registered under article twelve-A of this chapter as a distrib-
 utor of diesel motor fuel or residual petroleum product sold by a petro-
 leum business registered under this  article  as  a  residual  petroleum
 product  business  to  the  consumer exclusively for residential heating
 purposes only if such non-highway diesel motor fuel is delivered into  a
 storage  tank  which  is  not equipped with a hose or other apparatus by
 which such fuel can be dispensed into the fuel tank of a  motor  vehicle
 and such storage tank is attached to the heating unit burning such fuel.
   [(2) Partial non-residential heating exemption. (A) Non-highway diesel
 motor  fuel  sold  by  a  petroleum  business  registered  under article
 twelve-A of this chapter as a distributor of diesel motor fuel or  resi-
 dual  petroleum  product  sold  by a petroleum business registered under
 this article as a residual petroleum product business  to  the  consumer
 exclusively for heating, other than residential heating purposes only if
 such  non-highway  diesel  motor  fuel  is delivered into a storage tank
 which is not equipped with a hose or other apparatus by which such  fuel
 can  be dispensed into the fuel tank of a motor vehicle and such storage
 tank is attached to the heating unit burning such fuel  (B)  Calculation
 of  partial  exemption. The partial exemption under this paragraph shall
 be determined by multiplying the quantity of  non-highway  diesel  motor
 fuel and residual petroleum product eligible for the exemption times the
 sum  of the then current rate of the supplemental tax imposed by section
 three hundred one-j of this article and forty-six percent  of  the  then
 current  rate  of the tax imposed by section three hundred one-a of this
 article, with respect to the specific non-highway diesel motor  fuel  or
 residual petroleum product rate, as the case may be.]
   §  4.  The  subdivision  heading and paragraph 1 of subdivision (c) of
 section 301-b of the tax law, as added by chapter 190  of  the  laws  of
 1990, are amended to read as follows:
   Sales  to  [New York state and] the federal government. (1) Motor fuel
 imported or caused to be imported into this state or produced,  refined,
 manufactured  or compounded in this state by a petroleum business regis-
 tered under article twelve-A of this chapter, as a distributor of  motor
 fuel,  and  then  sold  by  such  petroleum  business to an organization
 described in paragraph [one or] two of subdivision (a) of section eleven
 hundred sixteen of this chapter where such motor fuel is  used  by  such
 organization for its own use or consumption.
   §  5.  The  opening  paragraph and subdivisions (a) and (b) of section
 301-c of the tax law, the opening paragraph as amended by section  2  of
 part  T of chapter 59 of the laws of 2022, subdivision (a) as amended by
 section 23 of part K of chapter 61 of the laws of  2011, and subdivision
 (b) as amended by chapter 330 of the laws of 1991, are amended  to  read
 as follows:
 A. 4154                             4
 
   A subsequent purchaser shall be eligible for reimbursement of tax with
 respect  to the following gallonage, subsequently sold by such purchaser
 in accordance with subdivision (a), (b), (e), (h),  [(j),  (k),  (n)  or
 (o)]  (I),  (K)  OR  (L)  of  this  section or used by such purchaser in
 accordance  with  subdivision (c), (d), (f), (g), [(i), (l), (m)] (J) or
 (q) of this section, which gallonage has been included in the measure of
 the tax imposed by this article on a petroleum business:
   (a) [Non-highway Diesel motor fuel used  for  heating  purposes.  (1)]
 Total  residential  heating reimbursement. Non-highway Diesel motor fuel
 purchased in this state and sold by such purchaser to a consumer for use
 exclusively for residential heating purposes but  only  where  (i)  such
 non-highway  diesel motor fuel is delivered into a storage tank which is
 not equipped with a hose or other apparatus by  which  such  non-highway
 Diesel motor fuel can be dispensed into the fuel tank of a motor vehicle
 and  such storage tank is attached to the heating unit burning such non-
 highway Diesel motor fuel, (ii) the tax imposed pursuant to this article
 has been paid with respect to such non-highway diesel motor fuel and the
 entire amount of such tax has been absorbed by such purchaser, and (iii)
 such purchaser possesses documentary proof satisfactory to  the  commis-
 sioner  evidencing  the absorption by it of the entire amount of the tax
 imposed pursuant to this article. Provided, however,  that  the  commis-
 sioner is authorized, in the event that the commissioner determines that
 it  would  not threaten the integrity of the administration and enforce-
 ment of the tax imposed by this article, to provide a reimbursement with
 respect to a retail sale to a consumer for residential heating  purposes
 of  less than ten gallons of non-highway diesel motor fuel provided such
 fuel is not dispensed into the tank of a motor vehicle.
   [(2) Partial non-residential heating  reimbursement.  (A)  Non-highway
 Diesel  motor fuel purchased in this state and sold by such purchaser to
 a consumer for use exclusively for heating, other than  for  residential
 heating  purposes, but only where (i) such non-highway diesel motor fuel
 is delivered into a storage tank which is not equipped with  a  hose  or
 other  apparatus  by  which  such  non-highway  Diesel motor fuel can be
 dispensed into the fuel tank of a motor vehicle and such storage tank is
 attached to the heating unit burning such non-highway Diesel motor fuel,
 (ii) the tax imposed pursuant to this article has been paid with respect
 to such non-highway diesel motor fuel and the entire amount of such  tax
 has  been absorbed by such purchaser, and (iii) such purchaser possesses
 documentary  proof  satisfactory  to  the  commissioner  evidencing  the
 absorption  by  it  of  the entire amount of the tax imposed pursuant to
 this article.
   (B) Calculation of partial reimbursement.  Notwithstanding  any  other
 provision  of  this  article, the amount of the reimbursement under this
 paragraph shall be determined by multiplying the quantity of non-highway
 diesel motor fuel eligible for the reimbursement times the  sum  of  the
 then  current  rate  of  the  supplemental  tax imposed by section three
 hundred one-j of this article and forty-six percent of the then  current
 rate  of the tax imposed by section three hundred one-a of this article,
 with respect to the non-highway diesel motor fuel rate, as the case  may
 be.]
   (b)  Sales  to [New York state and] the federal government. Motor fuel
 and diesel motor fuel purchased in this state and sold by such purchaser
 in this state to an organization described in paragraph [one or] two  of
 subdivision  (a) of section eleven hundred sixteen of this chapter where
 (i) such motor fuel or diesel motor fuel is for such organization's  own
 use  or  consumption,  (ii) the tax imposed pursuant to this article has
 A. 4154                             5
 
 been paid with respect to such motor fuel or diesel motor fuel  and  the
 entire amount of such tax has been absorbed by such purchaser and, (iii)
 such  purchaser  possesses documentary proof satisfactory to the commis-
 sioner  of  taxation  and finance evidencing the absorption by it of the
 entire amount of the tax imposed pursuant  to  this  article.  Provided,
 however,  that  the commissioner [of taxation and finance] shall require
 such documentary proof to qualify for any reimbursement of tax  provided
 by  this  section  as  the commissioner deems appropriate, including the
 expansion of any certification required pursuant to section two  hundred
 eighty-five-a  or two hundred eighty-five-b of this chapter to cover the
 taxes imposed pursuant to this article.
   § 5-a. The opening paragraph of section  301-c  of  the  tax  law,  as
 amended  by  section  3  of part T of chapter 59 of the laws of 2022, is
 amended to read as follows:
   A subsequent purchaser shall be eligible for reimbursement of tax with
 respect to the following gallonage, subsequently sold by such  purchaser
 in accordance with subdivision (a), (b), (e), (h)[, (j)] or [(k)] (I) of
 this  section  or  used by such purchaser in accordance with subdivision
 (c), (d), (f), (g), [(i), (l), (m)] (J) or (q) of  this  section,  which
 gallonage  has  been  included in the measure of the tax imposed by this
 article on a petroleum business:
   § 6. Subdivisions (i), (j) and (l) of section 301-c of the tax law are
 REPEALED.
   § 7. Subdivisions (k), (m), (n), (o), (p) and (q) of section 301-c  of
 the  tax  law  are  redesignated subdivisions (i), (j), (k), (l), (m)and
 (n).
   § 8. Section 301-d of the tax law is REPEALED.
   § 9. Paragraph 4 of subdivision (e) of section 301-e of the  tax  law,
 as  added  by  chapter  190  of  the laws of 1990, is amended to read as
 follows:
   (4) "aviation fuel" means kero-jet fuel  and  aviation  gasoline  [(as
 described in paragraph three of subdivision (a) of section three hundred
 one-b of this article)] MEETING THE SPECIFICATIONS SET FORTH IN AMERICAN
 STANDARD  TESTING  MATERIAL SPECIFICATION D910 OR MILITARY SPECIFICATION
 MIL-G-5572. Provided, further the term kero-jet shall not include  naph-
 tha  based aviation fuel refined and used solely for propelling military
 jet airplanes of the United States Armed Forces.
   § 10. Subdivision (f) of section 301-e of the tax law is REPEALED.
   § 11. Subdivision (a) of section 301-j of the tax law, as  amended  by
 chapter  309 of the laws of 1996, paragraphs 1, 2, 3 and 4 as amended by
 section 29 of part K of chapter 61 of the laws of 2011,  is  amended  to
 read as follows:
   (a)  Imposition  of  tax.    (1)  In  addition to the taxes imposed by
 sections three hundred one-a and three hundred one-e  of  this  article,
 there  is  hereby  imposed  upon every petroleum business subject to tax
 imposed under section three hundred one-a  of  this  article  and  every
 aviation fuel business subject to the aviation gasoline component of the
 tax imposed under section three hundred one-e of this article, a supple-
 mental  monthly tax for each or any part of a taxable month at a rate of
 six and eight-tenths cents per  gallon  with  respect  to  the  products
 included  in  each  component of the taxes imposed by such section three
 hundred one-a and the aviation gasoline component of the tax imposed  by
 such section three hundred one-e of this article.
   (2)  [Provided,  however,  "commercial  gallonage,"  as  such  term is
 defined in subdivision (k) of section three  hundred  of  this  article,
 shall be exempt from the measure of the tax imposed under this section.
 A. 4154                             6
   (3)]  Provided, further, "railroad diesel," as such term is defined in
 subdivision (l) of section three  hundred  of  this  article,  shall  be
 exempt from the measure of the tax imposed under this section.
   [(4)]  (3)  Provided,  further, a separate per gallon rate shall apply
 with respect to highway diesel motor fuel. Such rate shall be determined
 by taking the adjusted rate per gallon of tax  imposed  under  paragraph
 one  of this subdivision as adjusted in accordance with paragraph [five]
 FOUR of this subdivision and subtracting therefrom one  and  three-quar-
 ters  cents.    Commencing  January first, two thousand twelve, and each
 January thereafter, the per gallon rate  applicable  to  highway  diesel
 motor fuel shall be the adjusted rate under paragraph one of this subdi-
 vision  as  adjusted  in  accordance  with paragraph [five] FOUR of this
 subdivision which commences on such date minus  one  and  three-quarters
 cents.  The  resulting  rate  under this paragraph shall be expressed in
 hundredths of a cent.
   [(5)] (4) Except as  herein  provided,  the  tax  imposed  under  this
 section  shall  be calculated in the same respective manner as the taxes
 imposed by section three hundred one-a and section three  hundred  one-e
 of  this article. Except [for section three hundred one-d and except] as
 otherwise provided in this section, all the provisions of  this  article
 applicable  to  the  taxes  imposed  by sections three hundred one-a and
 three hundred one-e of this article, shall apply  with  respect  to  the
 supplemental  tax  imposed  by  this section to the same extent as if it
 were respectively imposed by such sections.
   § 12. Subparagraphs (ix) and (x) of paragraph 3  and  paragraph  5  of
 subdivision  (c)  of  section  1105 of the tax law, subparagraph (ix) of
 paragraph 3 as added by chapter 395 of the laws  of  1998,  subparagraph
 (x)  of  paragraph  3 as added by section 1 of part FF of chapter 407 of
 the laws of 1999, and paragraph 5 as amended by chapter 321 of the  laws
 of 2005, are amended to read as follows:
   (ix) [such services rendered with respect to tangible property used or
 consumed directly and predominantly in the production for sale of gas or
 oil  by  manufacturing,  processing,  generating,  assembling, refining,
 mining, or extracting.
   (x)] such services rendered with  respect  to  property  described  in
 paragraph  twelve-a of subdivision (a) of section eleven hundred fifteen
 of this article.
   (5) Maintaining, servicing or repairing  real  property,  property  or
 land,  as  such  terms are defined in the real property tax law, whether
 the services are performed in or outside of a building, as distinguished
 from adding to or improving such real property, property or land,  by  a
 capital improvement as such term capital improvement is defined in para-
 graph  nine  of  subdivision  (b)  of section eleven hundred one of this
 article, but excluding (i) services rendered by an individual who is not
 in a regular trade or business offering his services to the public, (ii)
 [services rendered directly with respect to real property,  property  or
 land  used  or consumed directly and predominantly in the production for
 sale of gas or oil by manufacturing, processing, generating, assembling,
 refining, mining, or extracting, (iii)] services rendered  with  respect
 to real property, property or land used or consumed predominantly either
 in the production of tangible personal property, for sale, by farming or
 in  a  commercial  horse boarding operation, or in both and [(iv)] (III)
 services of removal of waste material from a  facility  regulated  as  a
 transfer station or construction and demolition debris processing facil-
 ity  by  the department of environmental conservation, provided that the
 waste material to be removed was not generated by the facility.
 A. 4154                             7
 
   § 13. Subparagraph (xi) of paragraph 3 of subdivision (c)  of  section
 1105 of the tax law is REPEALED.
   § 14. Paragraph 9 of subdivision (a) of section 1115 of the tax law is
 REPEALED.
   §  15.  Paragraph  (ii)  of subdivision (b) of section 1115 of the tax
 law, as amended by section 30 of part Y of chapter 63  of  the  laws  of
 2000, is amended to read as follows:
   (ii)  [Gas,  electricity]  ELECTRICITY,  refrigeration  and steam, and
 [gas,] electric, refrigeration and steam service of whatever nature  for
 use  or consumption directly and exclusively in research and development
 in the experimental or laboratory sense shall be  exempt  from  the  tax
 imposed  under  subdivision  (b)  of section eleven hundred five and the
 compensating use tax imposed under section eleven hundred  ten  of  this
 article.  Such  research  and development shall not be deemed to include
 the ordinary testing or inspection of materials or products for  quality
 control,  efficiency  surveys,  management  studies,  consumer  surveys,
 advertising, promotions or research in connection with literary, histor-
 ical or similar projects.
   § 16. Paragraph 1 of subdivision (c) of section 1115 of the  tax  law,
 as  amended by section 7 of part B of chapter 63 of the laws of 2000, is
 amended to read as follows:
   (1) [Fuel, gas, electricity] ELECTRICITY, refrigeration and steam, and
 [gas,] electric, refrigeration and steam service of whatever nature  for
 use  or consumption directly and exclusively in the production of tangi-
 ble personal property, [gas,] electricity, refrigeration or  steam,  for
 sale,  by  manufacturing,  processing, assembling, generating, refining,
 mining or extracting shall be exempt from the taxes imposed under subdi-
 visions (a) and (b) of section eleven hundred five and the  compensating
 use tax imposed under section eleven hundred ten of this article.
   §  17.  Subdivision  (j) of section 1115 of the tax law, as amended by
 section 41 of part K of chapter 61 of the laws of 2011,  is  amended  to
 read as follows:
   (j) The exemptions provided in this section shall not apply to the tax
 required  to  be  prepaid  pursuant  to the provisions of section eleven
 hundred two of this article nor to the taxes imposed by sections  eleven
 hundred  five  and  eleven  hundred  ten of this article with respect to
 receipts from sales and uses of motor fuel or diesel motor fuel, [except
 that the exemptions provided in paragraphs nine and forty-two of  subdi-
 vision (a) of this section shall apply to the tax required to be prepaid
 pursuant to the provisions of section eleven hundred two of this article
 and  to  the  taxes  imposed  by sections eleven hundred five and eleven
 hundred ten of this article with respect to sales and uses  of  kero-jet
 fuel,]  CNG,  hydrogen and E85, provided, however, the exemption allowed
 for E85 shall be subject to  the  additional  requirements  provided  in
 section  eleven  hundred  two  of  this article with respect to E85. The
 exemption provided in subdivision (c) of this  section  shall  apply  to
 sales  and uses of non-highway diesel motor fuel but only if all of such
 fuel is consumed other than on the public highways of  this  state.  The
 exemption  provided  in  subdivision  (c) of this section shall apply to
 sales and uses of non-highway diesel motor fuel for use  or  consumption
 either in the production for sale of tangible personal property by farm-
 ing  or in a commercial horse boarding operation, or in both but only if
 all of such fuel is consumed other than on the public highways  of  this
 state (except for the use of the public highways to reach adjacent farm-
 lands  or  adjacent lands used in a commercial horse boarding operation,
 or both).
 A. 4154                             8
 
   § 17-a. Subdivision (j) of section 1115 of the tax law, as amended  by
 section  41-a of part K of chapter 61 of the laws of 2011, is amended to
 read as follows:
   (j) The exemptions provided in this section shall not apply to the tax
 required  to  be  prepaid  pursuant  to the provisions of section eleven
 hundred two of this article nor to the taxes imposed by sections  eleven
 hundred  five  and  eleven  hundred  ten of this article with respect to
 receipts from sales and uses of motor fuel or diesel motor fuel[, except
 that the exemption provided in paragraph nine of subdivision (a) of this
 section shall apply to the tax required to be prepaid  pursuant  to  the
 provisions  of  section  eleven  hundred  two of this article and to the
 taxes imposed by sections eleven hundred five and eleven hundred ten  of
 this  article  with  respect  to  sales  and uses of kero-jet fuel]. The
 exemption provided in subdivision (c) of this  section  shall  apply  to
 sales  and uses of non-highway diesel motor fuel but only if all of such
 fuel is consumed other than on the public highways of  this  state.  The
 exemption  provided  in  subdivision  (c) of this section shall apply to
 sales and uses of non-highway diesel motor fuel for use  or  consumption
 either in the production for sale of tangible personal property by farm-
 ing  or in a commercial horse boarding operation, or in both but only if
 all of such fuel is consumed other than on the public highways  of  this
 state (except for the use of the public highways to reach adjacent farm-
 lands  or  adjacent lands used in a commercial horse boarding operation,
 or both).
   § 18. Subdivision (s) of section 1115 of the  tax  law,  as  added  by
 chapter 201 of the laws of 1995, is redesignated subdivision (p).
   §  19.  Subdivision  (w)  of  section 1115 of the tax law, as added by
 section 32 of part Y of chapter 63 of the laws of 2000,  is  amended  to
 read as follows:
   (w)  Receipts  from the sale of [gas or] electricity or [gas or] elec-
 tric service of whatever nature and consideration given or contracted to
 be given for, or for the use of, [gas or] electricity or [gas or]  elec-
 tric service of whatever nature purchased for use or consumption direct-
 ly  and  exclusively  to  provide  [gas or] electric service of whatever
 nature consisting of operating [a gas pipeline or gas distribution  line
 or]  an  electric  transmission  or  distribution line [and ensuring the
 necessary working pressure in an underground gas storage facility] shall
 be exempt from sales and compensating use taxes imposed by this article.
 Such exempt [gas or] electricity or [gas or] electric service of whatev-
 er nature shall include, but shall not be  limited  to,  such  [gas  or]
 electricity  or  [gas  or]  electric  service of whatever nature used or
 consumed directly and exclusively to (1) [ensure necessary working pres-
 sure in a gas pipeline used to transport, transmit  or  distribute  gas,
 (2)  operate  compressors  used to transport, transmit or distribute gas
 through such a gas pipeline or  distribution  line  or  used  to  ensure
 necessary working pressure in such a storage facility, (3) operate heat-
 ers  to  prevent gas in such a pipeline or distribution line from freez-
 ing, (4) operate equipment which removes impurities  and  moisture  from
 gas  in  such  a pipeline or distribution line, (5)] operate substations
 and equipment related to electric transmission  and  distribution  lines
 such   as  transformers,  capacitors,  meters,  switches,  communication
 devices and heating and cooling equipment,  and  [(6)]  (2)  ensure  the
 reliability  of  electricity or electric service transmitted or distrib-
 uted through such lines, for  example,  by  operating  reserve  capacity
 machinery and equipment.
 A. 4154                             9
 
   §  20.  Subdivision  (k)  of section 300 of the tax law, as amended by
 section 17 of part K of chapter 61 of the laws of 2011,  is  amended  to
 read as follows:
   (k)  "Commercial  gallonage"  means gallonage (1) which is non-highway
 diesel motor fuel or residual petroleum product, (2) [which is  included
 in  the  full  measure of the non-highway diesel motor fuel component or
 the residual petroleum  product  component  of  the  tax  imposed  under
 section  three  hundred  one-a of this article, (3)] which does not (and
 will not) qualify [(A) for the utility credit or reimbursement  provided
 for  in  section three hundred one-d of this article, (B)] (A) as "manu-
 facturing gallonage", as such term is defined in subdivision (m) of this
 section, [(C)] OR (B)  for  the  not-for-profit  organization  exemption
 provided  for  in subdivision (h) of section three hundred one-b of this
 article, [or (D) for the heating exemption provided for in paragraph two
 of subdivision (d) of section three hundred one-b of this article or the
 heating reimbursement provided for in paragraph two of  subdivision  (a)
 of  section  three  hundred  one-c of this article,] and [(4)] (3) which
 will not be used nor has been used in the fuel tank connecting with  the
 engine of a vessel. No gallonage shall qualify as "commercial gallonage"
 where  such  gallonage  is  eligible  for  the  [(i)  utility  credit or
 reimbursement under such section three hundred one-d  of  this  article,
 (ii)  "manufacturing exemption" under paragraph three of subdivision (f)
 of section three hundred one-a of this  article,  (iii)]  not-for-profit
 organization  exemption  under  subdivision (h) of section three hundred
 one-b of this article[, or (iv) heating exemption provided for in  para-
 graph  two  of  subdivision  (d)  of section three hundred one-b of this
 article or the heating reimbursement provided for in  paragraph  two  of
 subdivision  (a)  of  section  three hundred one-c of this article]. The
 commissioner shall require such documentary proof  to  substantiate  the
 classification  of product as "commercial gallonage" as the commissioner
 deems appropriate.
   § 21. Paragraph 1 of subdivision (f) of section 301-b of the tax  law,
 as amended by section 21 of part K of chapter 61 of the laws of 2011, is
 amended to read as follows:
   (1)  Residual petroleum product and non-highway diesel motor fuel sold
 to an electric corporation, [as described in subdivision (a) of  section
 three hundred one-d of this article,] AS DEFINED IN SUBDIVISION THIRTEEN
 OF  SECTION TWO OF THE PUBLIC SERVICE LAW, SUBJECT TO THE SUPERVISION OF
 THE DEPARTMENT OF PUBLIC SERVICE, which is registered with  the  depart-
 ment  as a petroleum business tax direct pay permittee, and used by such
 electric corporation to fuel generators for the purpose of manufacturing
 or producing electricity where such electric corporation provides a copy
 of a direct pay permit authorized and issued by the commissioner, to the
 petroleum business making such sale. If so registered, such  corporation
 shall be a taxpayer under this article and (i) such electric corporation
 shall  file a return monthly and pay the applicable tax under this arti-
 cle, after the application of allowable credits, on all  such  purchases
 directly  to  the  commissioner, (ii) such electric corporation shall be
 subject to all of the provisions of this article relating to the respon-
 sibilities and liabilities of taxpayers under this article with  respect
 to such residual petroleum product and non-highway diesel motor fuel.
   §  22.  This  act shall take effect immediately and shall apply to all
 tax years commencing on or after the first of  January  next  succeeding
 the date on which it shall have become a law; provided, however, that:
   (a)  the  amendments  to  paragraphs  6, 7 and 8 of subdivision (a) of
 section 301-b made by section three of this act  shall  not  affect  the
 A. 4154                            10
 
 expiration  and repeal of such paragraphs and shall expire and be deemed
 repealed therewith;
   (b)  the  amendments  to the opening paragraph of section 301-c of the
 tax law as made by section five of this act  shall  be  subject  to  the
 expiration  and  reversion  of  such paragraph pursuant to section 19 of
 part W-1 of chapter 109 of the laws of 2006, as amended, when upon  such
 date the provisions of section five-a of this act shall take effect;
   (c)  the  amendments to subdivisions (n) and (o) of section 301-c made
 by section seven of this act shall not affect the expiration and  repeal
 of  such subdivisions and shall expire and be deemed repealed therewith;
 and
   (d) the amendments to subdivision (j) of section 1115 of the  tax  law
 made by section seventeen of this act shall be subject to the expiration
 and  reversion of such subdivision pursuant to section 19 of part W-1 of
 chapter 109 of the laws of 2006, as amended, when  upon  such  date  the
 provisions of section seventeen-a of this act shall take effect.