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SECTION 1115
Exemptions from sales and use taxes
Tax (TAX) CHAPTER 60, ARTICLE 28, PART 3
§ 1115. Exemptions from sales and use taxes. (a) Receipts from the
following shall be exempt from the tax on retail sales imposed under
subdivision (a) of section eleven hundred five and the compensating use
tax imposed under section eleven hundred ten:

(1) (A) Food, food products, beverages, dietary foods and health
supplements, sold for human consumption but not including (i) candy and
confectionery, (ii) fruit drinks which contain less than seventy percent
of natural fruit juice, (iii) soft drinks, sodas and beverages such as
are ordinarily dispensed at soda fountains or in connection therewith
(other than coffee, tea and cocoa) and (iv) beer, wine or other
alcoholic beverages, all of which shall be subject to the retail sales
and compensating use taxes, whether or not the item is sold in liquid
form. Nothing in this subparagraph shall be construed as exempting food
or drink from the tax imposed under subdivision (d) of section eleven
hundred five of this article.

(B) Until May thirty first, two thousand twenty-two, the food and
drink excluded from the exemption provided by clauses (i), (ii) and
(iii) of subparagraph (A) of this paragraph, and bottled water, shall be
exempt under this subparagraph when sold for one dollar and fifty cents
or less through any vending machine that accepts coin or currency only
or when sold for two dollars or less through any vending machine that
accepts any form of payment other than coin or currency, whether or not
it also accepts coin or currency.

(2) Water, when delivered to the consumer through mains or pipes.

(3) Drugs and medicines intended for use, internally or externally, in
the cure, mitigation, treatment or prevention of illnesses or diseases
in human beings, medical equipment (including component parts thereof)
and supplies required for such use or to correct or alleviate physical
incapacity, and products consumed by humans for the preservation of
health but not including cosmetics or toilet articles notwithstanding
the presence of medicinal ingredients therein or medical equipment
(including component parts thereof) and supplies, other than such drugs
and medicines, purchased at retail for use in performing medical and
similar services for compensation.

(3-a) Feminine hygiene products, including, but not limited to,
sanitary napkins, tampons and panty liners.

* (3-b) Adult-use cannabis products as defined by article twenty-C of
this chapter.

* NB Effective April 1, 2022

(4) Prosthetic aids, hearing aids, eyeglasses and artificial devices
and component parts thereof purchased to correct or alleviate physical
incapacity in human beings.

(5) Newspapers and periodicals.

(6) (A) Tangible personal property, whether or not incorporated in a
building or structure, for use or consumption predominantly either in
the production for sale of tangible personal property by farming or in a
commercial horse boarding operation, or in both.

(B) With respect to the exemption of motor vehicles under this
paragraph, (i) use of a motor vehicle either in the production phase of
farming or in a commercial horse boarding operation, or in both, shall
be defined as any use of the motor vehicle on property either farmed or
used in a commercial horse boarding operation, or both, by the motor
vehicle purchaser or user or in direct and uninterrupted trips between
properties farmed or used in such operation, or both, by the motor
vehicle purchaser or user, and (ii) "predominantly" shall mean that more
than fifty percent of the motor vehicle's use is either in the
production phase of farming or in a commercial horse boarding operation,
or in both. The percentage of such vehicle's use either in the
production phase of farming or in a commercial horse boarding operation,
or in both, may be computed either on the basis of mileage or hours of
use, at the discretion of the motor vehicle purchaser or user. A person
may purchase a motor vehicle qualifying for exemption under this
paragraph without payment of tax imposed by section eleven hundred five
or eleven hundred ten of this article by furnishing the vendor a
properly completed exemption certificate promulgated by the
commissioner; and such purchaser may register such vehicle or apply for
a certificate of title for such vehicle with the commissioner of motor
vehicles or a county clerk, without payment of such taxes, by furnishing
such a properly completed certificate to such commissioner or clerk.

(7) Tangible personal property sold by a mortician, undertaker or
funeral director. However, all tangible personal property sold to a
mortician, undertaker or funeral director for use in the conducting of
funerals shall not be deemed a sale for resale within the meaning of
paragraph (4) of subdivision (b) of section eleven hundred one of this
chapter and shall not be exempt from the retail sales tax.

(8) Commercial vessels primarily engaged in interstate or foreign
commerce and property used by or purchased for the use of such vessels
for fuel, provisions, supplies, maintenance and repairs (other than
articles purchased for the original equipping of a new ship).

(9) Fuel sold to an air line for use in its airplanes.

(10) Tangible personal property purchased for use or consumption
directly and predominantly in research and development in the
experimental or laboratory sense. 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, historical or similar projects.

(11) The flags of the United States of America and the state of New
York.

(11-a) Any military decorations, including but not limited to,
ribbons, medals, mini-medals, and lapel pins, when sold to a purchaser:
(i) who is a veteran of the United States provided that the purchaser
shall present to the vendor proof in the form of discharge papers, or
other official documentation, of his or her veteran status; or (ii) who
is an active member of the military provided that the purchaser shall
present to the vendor proof or other official documentation of actual
military service.

(11-b) Military service flags, prisoner of war flags and blue star
banners.

(12) Machinery or equipment for use or consumption directly and
predominantly in the production of tangible personal property, gas,
electricity, refrigeration or steam for sale, by manufacturing,
processing, generating, assembling, refining, mining or extracting, but
not including parts with a useful life of one year or less or tools or
supplies used in connection with such machinery or equipment. This
exemption shall include all pipe, pipeline, drilling rigs, service rigs,
vehicles and associated equipment used in the drilling, production and
operation of oil, gas, and solution mining activities to the point of
sale to the first commercial purchaser.

(12-a) Tangible personal property for use or consumption directly and
predominantly in the receiving, initiating, amplifying, processing,
transmitting, retransmitting, switching or monitoring of switching of
telecommunications services for sale or internet access services for
sale or any combination thereof. Such tangible personal property exempt
under this subdivision shall include, but not be limited to, tangible
personal property used or consumed to upgrade systems to allow for the
receiving, initiating, amplifying, processing, transmitting,
retransmitting, switching or monitoring of switching of
telecommunications services for sale or internet access services for
sale or any combination thereof. As used in this paragraph, the term
"telecommunications services" shall have the same meaning as defined in
paragraph (g) of subdivision one of section one hundred eighty-six-e of
this chapter.

* (12-b) (i) Machinery, equipment or apparatus used or consumed
directly and predominantly to upgrade cable television systems to allow
for the receiving, initiating, amplifying, processing, transmitting,
retransmitting, switching or monitoring of switching of digital cable
television service for sale, including parts with a useful life of one
year or less and tools or supplies used in connection with such
machinery, equipment or apparatus; and (ii) to the extent not otherwise
exempt, equipment or apparatus, sold to an entity principally engaged in
furnishing cable television service for sale, for use or consumption
directly and predominantly in the receiving, initiating, amplifying,
processing, transmitting, retransmitting, switching or monitoring of
switching of internet access service for sale, including parts with a
useful life of one year or less and tools and supplies used in
connection with such equipment or apparatus. As used in this paragraph,
the term "digital cable television service" shall mean cable television
service, as defined in subparagraph two of paragraph (b) of subdivision
two of section one hundred eighty-six-e of this chapter, transmitted by
the use of digital technology; and the term "internet access service"
shall mean such term as defined in subdivision (v) of this section.

* NB Expired September 1, 2003

13. Tangible personal property sold through coin operated vending
machines at ten cents or less, provided the retailer is primarily
engaged in making such sales and maintains records satisfactory to the
state tax commission.

(13-a) Tangible personal property sold through coin operated bulk
vending machines at fifty cents or less, provided the retailer is
primarily engaged in making such sales and maintains records
satisfactory to the commissioner. As used in this paragraph, "bulk
vending machine" means a vending machine, containing unsorted
merchandise, which, upon insertion of a coin, dispenses the same in
approximately equal portions, at random and without selection by the
customer.

(13-b) Temporary transportation devices sold through coin-operated
equipment, provided the retailer is primarily engaged in making such
sales and maintains records satisfactory to the commissioner. As used in
this paragraph, "temporary transportation device" means an instrument of
transport used for a limited period of time for the purpose of carrying
luggage or merchandise a short distance within a facility of
embarkation/disembarkation or a facility where such merchandise was
purchased.

(14) Motor vehicles, as such term is defined in section one hundred
twenty-five of the vehicle and traffic law, sold by a husband or wife to
his or her spouse, or by a parent to his or her child, or by a child to
his or her parent. Provided, however, this exemption shall not apply if
the vendor is a dealer as defined in section four hundred fifteen of the
vehicle and traffic law.

(14-a) Motor vehicles, as such term is defined in section one hundred
twenty-five of the vehicle and traffic law, upon registration of such
motor vehicle if such motor vehicle was purchased in another state by a
person while he or she was in the military service of the United States
upon the return of such person to this state, as long as he or she has
proof of payment, whether made by the seller or purchaser, in another
state of one or more of the following taxes on such motor vehicle:
sales, use, excise, usage, or a highway use tax necessary to obtain
title.

(15) Tangible personal property sold to a contractor, subcontractor or
repairman for use in (i) erecting a structure or building (A) of an
organization described in subdivision (a) of section eleven hundred
sixteen or (B) used predominantly either in the production phase of
farming or in a commercial horse boarding operation, or in both, or (ii)
adding to, altering or improving real property, property or land (A) of
such an organization or (B) used predominantly either in the production
phase of farming or in a commercial horse boarding operation, or in
both, as the terms real property, property or land are defined in the
real property tax law; provided, however, no exemption shall exist under
this paragraph unless such tangible personal property is to become an
integral component part of such structure, building or real property.

(16) Tangible personal property sold to a contractor, subcontractor or
repairman for use in maintaining, servicing or repairing real property,
property or land (i) of an organization described in subdivision (a) of
section eleven hundred sixteen or (ii) used predominantly either in the
production phase of farming or in a commercial horse boarding operation,
or in both, as the terms real property, property or land are defined in
the real property tax law; provided, however, no exemption shall exist
under this paragraph unless such tangible personal property is to become
an integral component part of such structure, building or real property.

(17) Tangible personal property sold by a contractor, subcontractor or
repairman to a person other than an organization described in
subdivision (a) of section eleven hundred sixteen, for whom he is adding
to, or improving real property, property or land by a capital
improvement, or for whom he is about to do any of the foregoing, if such
tangible personal property is to become an integral component part of
such structure, building or real property; provided, however, that if
such sale is made pursuant to a contract irrevocably entered into before
September first, nineteen hundred sixty-nine, no exemption shall exist
under this paragraph.

(18) Tangible personal property sold by a person at his residence
provided such person or any member of his household does not conduct a
trade or business in which similar items are sold, and the receipts from
such sales can reasonably be expected not to exceed six hundred dollars
in a calendar year. If such person reasonably expects that his receipts
from such sales will not exceed six hundred dollars in a calendar year,
but such receipts do exceed such sum, the exemption provided for in this
paragraph will apply but only to the first six hundred dollars of
receipts in such calendar year. Provided, however, where a person
sixteen years of age or older has engaged in such sales for three days
in a calendar year, the exemption provided for in this paragraph shall
not apply to subsequent sales in that calendar year. The exemption
provided for in this paragraph shall also not apply to (A) sales at a
private residence conducted by an auctioneer, sheriff or other third
party, (B) a sale held to liquidate an estate or (C) the sale of boats,
snowmobiles or motor vehicles except such sales of motor vehicles within
the exemptions of paragraph fourteen of subdivision (a) of this section.

(18-a) Tangible personal property manufactured and sold by a veteran,
as defined in section three hundred sixty-four of the executive law, for
the benefit of a veteran's service organization, provided that such
person or any member of his or her household does not conduct a trade or
business in which similar items are sold, the first two thousand five
hundred dollars of receipts from such sales in a calendar year.

(19) Cartons, containers, and wrapping and packaging materials and
supplies, and components thereof for use and consumption by a vendor in
packaging or packing tangible personal property for sale, and actually
transferred by the vendor to the purchaser.

(19-a) Milk crates purchased by a dairy farmer or New York state
licensed milk distributor and used exclusively and directly for the
packaging and delivery of milk and milk products to customers.

(20) Paper, ink and any other tangible personal property purchased for
use in the publication of a shopping paper, as such term is defined in
and limited by subdivision (i) of this section, which is to become a
physical component part of such paper.

(21) Commercial aircraft primarily engaged in intrastate, interstate
or foreign commerce, machinery or equipment to be installed on such
aircraft and property used by or purchased for the use of such aircraft
for maintenance and repairs and flight simulators purchased by
commercial airlines.

(21-a) General aviation aircraft, and machinery or equipment to be
installed on such aircraft. For purposes of this subdivision, "general
aviation aircraft" means an aircraft that is used in civil aviation,
that is not a commercial aircraft as defined in paragraph seventeen of
subdivision (b) of section eleven hundred one of this article, military
aircraft, unmanned aerial vehicle or drone.

(22) The rental or lease of trucks, tractors or tractor-trailer
combinations to an authorized carrier, pursuant to a written contractual
agreement, for use in the transportation for hire of tangible personal
property as augmenting equipment by such authorized carrier, provided
that under such rental, lease or license to use, the owner of any such
vehicle or any employee of such owner operates such vehicle. For
purposes of this paragraph, the term "authorized carrier" shall have the
same meaning given that term in subpart-A of part ten hundred
fifty-seven of title forty-nine of the code of federal regulations and
in part eight hundred forty-five of title seventeen of the codes, rules
and regulations of the state of New York, as the case may be, and the
term "augmenting equipment" shall have the same meaning given that term
in such part of such title of the codes, rules and regulations of the
state of New York.

(23) Used mobile homes.

(24) Fishing vessels used directly and predominantly in the harvesting
of fish for sale, and property used by or purchased for the use of such
vessels for fuel, provisions, supplies, maintenance and repairs. For the
purpose of this paragraph the term fishing vessel shall not include any
vessel used predominantly for sport fishing purposes.

(25) Natural gas used for personal residence consumption by a land
owner from, or provided in exchange for gas from, a natural gas well
located on property owned by such land owner, such gas having been set
aside for the property owner's use by lease.

(26) Tractors, trailers or semi-trailers, as such terms are defined in
article one of the vehicle and traffic law, and property installed on
such vehicles for their equipping, maintenance or repair, provided such
vehicle is used in combination where the gross vehicle weight of such
combination exceeds twenty-six thousand pounds.

(27) Precious metal bullion sold for investment, provided that (i) the
retailer, if so required, is registered pursuant to section three
hundred fifty-nine-e of the general business law and (ii) the receipt or
consideration given or contracted to be given for such bullion depends
only on the value of the metal content of such bullion. "Precious metal
bullion" means bars, ingots or coins of gold, silver, platinum,
palladium, rhodium, ruthenium or iridium, but shall not include bars,
ingots or coins which have been manufactured, processed, assembled,
fabricated or used for an industrial, professional, esthetic or artistic
purpose. Precious metal bullion shall be deemed to be sold for
investment when it is sold for more than one thousand dollars and the
purchaser or user or agent of either of them holds it in the same form
as when it was purchased and does not manufacture, process, assemble or
fabricate such bullion for its own use. For purposes of this paragraph,
the receipt or consideration given or contracted to be given shall be
deemed to depend only on the value of the metal content if, at the time
of sale or purchase at retail, such receipt or consideration does not
exceed (i) one hundred forty percent, with respect to silver coins, or
(ii) one hundred twenty percent, with respect to gold coins weighing
one-quarter of an ounce or less, or (iii) one hundred fifteen percent,
with respect to other coins, of the greater of (A) the daily closing
bullion cash price of such metal in the open market or (B) the coins'
face value at prevailing rates of exchange, or (iv), with respect to
bars and ingots, one hundred fifteen percent of such bullion cash price
of such metal. Where there is no such closing price for such metal, the
average of the bid and asked cash prices shall be substituted for such
closing price.

(28) Computer software designed and developed by the author or creator
to the specifications of a specific purchaser which is transferred
directly or indirectly to a corporation which is a member of an
affiliated group of corporations within the meaning of subparagraph six
of paragraph (b) of subdivision seventeen of section two hundred eight
of this chapter except for clauses (ii) and (iii) of such subparagraph
that includes such purchaser, or to a partnership in which such
purchaser and other members of such affiliated group have at least a
fifty percent capital or profits interest (but only if the transfer is
not in pursuance of a plan having as its principal purpose the avoidance
or evasion of tax under this article), but in no case including computer
software which is pre-written, as defined in paragraph six of
subdivision (b) of section eleven hundred one of this article and
available to be sold to customers in the ordinary course of the seller's
business.

(29) a horse which is a racehorse registered with the jockey club, the
United States trotting association or the national steeplechase and hunt
association (or such a horse during the first twenty-four months of its
life if it is eligible to be so registered) which is purchased or used
with the intent that it shall be entered in an event on which
pari-mutuel wagering is authorized by law, except that the exemption
provided for under this paragraph shall not apply to any such horse
which is considered to be at least four years old and has never raced in
an event on which pari-mutuel wagering is authorized by law. Provided,
further, the purchaser of such a racehorse must give to the seller a
certification containing such information as the commissioner of
taxation and finance shall require, which shall include a statement to
the effect that the purchaser intends to enter such horse in events on
which pari-mutuel wagering is authorized by law. Such certification
shall be retained by such seller, together with documentary proof of the
age of such horse, for a three-year period. The provisions of this
paragraph shall apply to all sales and uses of racehorses occurring on
and after June first, nineteen hundred ninety-four.

(30) Clothing and footwear for which the receipt or consideration
given or contracted to be given is less than one hundred ten dollars per
article of clothing, per pair of shoes or other articles of footwear or
per item used or consumed to make or repair such clothing and which
becomes a physical component part of such clothing.

* (31) Copies sold through coin operated photocopying machines at
fifty cents or less. As used in this paragraph, "photocopying machine"
means a vending machine which, upon insertion of a coin, copies a
document for a purchaser.

* NB There are 2 par. (31)'s

* (31) Enhanced emissions inspection equipment, certified by the
department of environmental conservation, pursuant to regulations
promulgated by such department, for use in an enhanced emissions
inspection and maintenance program as required by the federal clean air
act of 1990, as amended in nineteen hundred ninety(42 U.S.C. 7401 et
seq.) and the New York state clean air compliance act enacted by chapter
608 of the laws of 1993, where such equipment is purchased and used by
an official inspection station licensed by the commissioner of motor
vehicles under article five of the vehicle and traffic law and
authorized to conduct the enhanced emission inspections required by such
federal act.

* NB There are 2 par. (31)'s

(32) Omnibuses, as such term is defined in article one of the vehicle
and traffic law, weighing at least twenty-six thousand pounds and
measuring at least forty feet in length and parts, equipment and
lubricants purchased and used in their operation, provided such
omnibuses are used to transport persons for hire by a carrier operating
pursuant to a certificate of authority issued by the New York state
commissioner of transportation or by an appropriate agency of the United
States. Where receipts from the sale of or consideration given or
contracted to be given for the purchase of an omnibus or other property
has been exempted under this paragraph, such receipts or consideration
shall not also qualify for the refund or credit described in subdivision
(b) of section eleven hundred nineteen of this article; where any or all
of the tax on receipts from the sale of or consideration given or
contracted to be given for the purchase of an omnibus or other property
has been refunded or credited under such subdivision (b), no part of
such receipts or consideration shall be exempt under this paragraph.
Nothing in this paragraph shall be construed to affect the refund or
credit under subdivision (b) of such section eleven hundred nineteen
with respect to the purchase or use of motor fuel or diesel motor fuel.

(33) Wine or wine product, beer or beer product, cider or cider
product, liquor or liquor product, mead or mead product, and the kegs,
cans, bottles, growlers, corks, caps, and labels used to package such
alcoholic product, furnished by the official agent of a farm winery,
winery, brewery, farm brewery, cider producer, farm cidery, distillery,
farm distillery, mead producer, farm meadery, wholesaler, or importer at
a tasting held in accordance with the alcoholic beverage control law to
a customer or prospective customer who consumes such wine, beer, cider,
liquor or mead at such tasting.

(34) Textbooks purchased by full and part time college students for
their courses; provided, however, that upon purchase such a student
shall present a valid student identification card, and such a textbook
shall be required for a course being taken by such student at an
institution of higher education. For purposes of this subdivision the
term:

(i) "Textbooks" includes only those books specifically written,
designed or produced for educational, instructional or pedagogical
purposes.

(ii) "Institution of higher education" shall mean any institution of
higher education, recognized and approved by the regents of the
university of the state of New York or accredited by a nationally
recognized accrediting agency or association accepted as such by the
regents of the university of the state of New York, which provides a
course of study leading to the granting of a post-secondary degree,
certificate or diploma.

(35) Computer system hardware used or consumed directly and
predominantly in designing and developing computer software for sale or
in providing the service, for sale, of designing and developing internet
websites.

(36) Parts with a useful life of one year or less, tools and supplies
for use or consumption directly and predominantly in the production for
sale of gas or oil by manufacturing, processing, generating, assembling,
refining, mining, or extracting.

(37) (i) Machinery, equipment and other tangible personal property
specified herein, sold to a person operating an internet data center
located in this state for use in such a center, where such property: (A)
will be located or installed in a facility or structure which is an
internet data center and (B) is required for and directly related to the
provision of internet website services for sale by the operator of the
center. Such property shall include computer system hardware including
servers and routers, computer software, storage racks and cages for
computer equipment, interior fiber optic and copper cables, property
required to maintain the appropriate climate controlled environment for
the property in the internet data center such as air filtration and air
conditioning equipment and vapor barriers, property related to fire
control such as fire suppression equipment and alarms, power generators,
power conditioners, property related to providing a secure environment
such as protective barriers, property which when installed in such
facility or structure will constitute raised flooring and other similar
property. For purposes of this paragraph the operator of an internet
data center is a person (A) operating a facility which consists of a
data center specifically designed and constructed to provide a high
security environment for the location of servers and similar equipment
on which reside internet websites; and (B) providing at such facility
the internet website services of: (I) uninterrupted internet access to
its customers' web pages in a secure environment and (II) continuous
internet traffic management for its customers' web pages.

(ii) For purposes of this paragraph, an operator of an internet data
center, primarily engaged in the sale from such center of internet
access services exempt from tax under subdivision (v) of this section,
is not providing internet website services for sale. Primarily engaged
shall mean that more than fifty percent of the use of all the machinery,
equipment and other specified property in any such center, which would
otherwise be exempt under this paragraph, is for the rendition of such
internet access services.

(iii) Receipts from the retail sale of the tangible personal property
exempt pursuant to subparagraph (i) of this paragraph if purchased by an
operator of an internet data center, shall be exempt when purchased by a
contractor, subcontractor or repairman for use as described in such
subparagraph (i), where such property is to become a capital improvement
to real property.

(iv) In order to receive the exemption provided for under this
paragraph or subdivision (y) of this section, the operator of the
internet data center or the contractor, subcontractor or repairman shall
furnish to the vendor of the exempt property or services a certificate
in such form and containing such information as may be prescribed by the
commissioner.

(38) (A) Machinery or equipment or other tangible personal property
(including parts, tools and supplies) for use or consumption by a
broadcaster directly and predominantly in the production (including
post-production) of live or recorded programs which are used or consumed
by a broadcaster predominantly for the purpose of broadcast over-the-air
by such broadcaster or transmission through a cable television or direct
broadcast satellite system by such broadcaster. Tangible personal
property, which is described in the preceding sentence, and which is
leased by a broadcaster to another person for that person's use or
consumption directly and predominantly in the production (including
post-production) of such live or recorded programs by such person, shall
be deemed to be used or consumed by the lessor for purposes of applying
the directly and predominantly requirement of this subparagraph.

(B) Machinery or equipment or other tangible personal property
(including parts, tools and supplies) for use or consumption by a
broadcaster directly and predominantly in the transmission of live or
recorded programs over-the-air or through a cable television or direct
broadcast satellite system by such broadcaster. Tangible personal
property, which is described in the preceding sentence, and which is
leased by a broadcaster to another person for that person's use or
consumption directly and predominantly in the transmission of such live
or recorded programs by such person, shall be deemed to be used or
consumed by the lessor for purposes of applying the directly and
predominantly requirement of this subparagraph.

(C) For purposes of this paragraph: (i) the term "broadcaster" means a
television or radio station licensed by the federal communications
commission, a television or radio broadcast network or a cable
television network. The term "television or radio broadcast network"
means an organization which produces and/or purchases programs intended
for transmission by affiliated television or radio stations licensed by
the federal communications commission and which has distribution
facilities or circuits available to such affiliated stations during all
or some portion of one or more days during each week. The term "cable
television network" means an organization which produces and/or
purchases programs intended for transmission either by direct broadcast
satellite systems or by cable systems pursuant to an affiliation or
similar agreement and which has distribution facilities or circuits
available to such direct broadcast satellite systems or such cable
systems during all or some portion of one or more days during each week.
For the purpose of subparagraph (B) of this paragraph, the term
"broadcaster" shall not include cable system operators and direct
broadcast satellite system operators. Provided, however, for the purpose
of subparagraph (A) of this paragraph, such term shall also include a
cable system operator or a direct broadcast satellite system operator
solely with respect to machinery or equipment or other tangible personal
property (including parts, tools and supplies) for use or consumption by
it directly and predominantly in the production (including
post-production) of live or recorded programs intended for transmission
to its viewers over its system; (ii) the term "programs" means any
performance, event, play, story or literary, musical, artistic or other
work used for entertainment or educational purposes, including but not
limited to news, news specials, sporting events, game shows, talk shows
and commercials; and (iii) the term "recorded programs" means any
program contained on any medium.

(39) Tangible personal property for use or consumption directly and
predominantly in the production, including editing, dubbing and mixing,
of a film for sale regardless of the medium by means of which the film
is conveyed to a purchaser. For purposes of this paragraph, the term
"film" means feature films, documentary films, shorts, television films,
television commercials and similar productions.

(40) Machinery or equipment for use or consumption directly and
predominantly in the control, prevention, or abatement of pollution or
contaminants from manufacturing or industrial facilities, to the extent
such machinery or equipment is not otherwise exempt under paragraph
twelve of this subdivision.

(41) machinery and equipment for use directly and predominantly in
loading, unloading and handling cargo at a marine terminal facility
located in a city with a population of one million or more which in two
thousand three, handled more than three hundred fifty thousand
twenty-foot equivalent units (TEUs). For the purpose of this section the
term twenty-foot equivalent unit (TEU) is used to express the relative
number of containers based on the equivalent length of a twenty-foot
container.

* (42) E85, CNG or hydrogen, for use or consumption directly and
exclusively in the engine of a motor vehicle and natural gas purchased
and converted into CNG, for use or for sale for use or consumption
directly and exclusively in the engine of a motor vehicle.

* NB Repealed September 1, 2026

(43) Ferry boats used directly and predominantly to provide ferry
service for vehicles and passengers within a county or counties by a
ferry company whose rates for that ferry service are regulated by the
county or counties in which that service is provided under section one
hundred thirty-one-g of the highway law and property used by or
purchased for the use of those exempt ferry boats for fuel, provisions,
supplies, maintenance and repairs.

(44) monuments as that term is defined in paragraph (f) of section
fifteen hundred two of the not-for-profit corporation law, and tangible
personal property that will become a physical component part of such
monuments.

(45) Sales by a brewery licensed under section fifty-one of the
alcoholic beverage control law, or a farm brewery licensed under section
fifty-one-a of such law, of no more than four samples of beer not
exceeding four fluid ounces each, and each sample shall be a different
beer than the others. Only a customer's first purchase during each
calendar day at each licensed entity shall be exempt under this
paragraph.

(46) Breast pump replacement parts and breast pump collection and
storage supplies to an individual purchaser for home use. For purposes
of this subdivision:

(A) "Breast pump replacement parts" shall mean items used in
conjunction with a breast pump to collect milk expressed from a human
breast and shall include, but not be limited to: breast shields and
breast shield connectors; breast pump tubes and tubing adapters; breast
pump valves and membranes; backflow protectors and backflow protector
adapters; and bottles and bottle caps specific to the operation of the
breast pump. "Breast pump replacement parts" does not include storage
bags and infant feeding bottles that are not specifically designed for,
or a component part of, a breast pump.

(B) "Breast pump collection and storage supplies" shall mean breast
milk storage bags used to collect breast milk and to store collected
breast milk until it is ready for consumption.

(b) (i) Telephony and telegraphy and telephone and telegraph service
used by newspapers, electronic news services, radio broadcasters and
television broadcasters in the collection or dissemination of news shall
be exempt from the tax imposed under subdivision (b) of section eleven
hundred five of this article if the charge for such services is a toll
charge or a charge for mileage services, including the associated
station terminal equipment.

(ii) Gas, 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,
historical or similar projects.

(iii) (A) Electricity, steam, and refrigeration and electric, steam,
and refrigeration services that are (1) metered and (2) generated or
produced by a cogeneration facility owned or operated by a cooperative
corporation containing at least fifteen hundred apartments, where such
electricity, steam, or refrigeration and/or electric, steam, or
refrigeration services are distributed to tenants and/or occupants of a
cooperative corporation, shall be exempt from the taxes imposed under
subdivisions (a) and (b) of section eleven hundred five and the
compensating use tax imposed under section eleven hundred ten of this
article.

(B) For purposes of this paragraph, the term "cogeneration facility"
means (1) a facility that produces electric energy and steam or other
forms of useful energy (such as heat) that are used for industrial,
commercial, or residential heating or cooling purposes that was in
operation before January first, two thousand four, and is used to
generate electricity and/or thermal energy produced by such facility
when such electricity and/or thermal energy is supplied to and used by
tenants and/or occupants of a cooperative corporation; or (2) a
cogeneration facility, as defined in clause one of this subparagraph,
that has been replaced by any other facility used to generate
electricity and/or thermal energy produced by such facility when such
electricity and/or thermal energy is supplied to and used by tenants
and/or occupants of a cooperative corporation.

(C) For purposes of this paragraph, the term "cooperative corporation"
means a corporation organized under the laws of New York, at least some
of the stockholders of which are entitled, by reason of the
stockholders' ownership interest of stock in the corporation, to occupy
for dwelling purposes an apartment in a building owned by the
corporation pursuant to a lease or occupancy agreement with the
corporation.

(D) Fuel, gas, electricity, refrigeration and steam, and gas,
electric, refrigeration and steam service, used or consumed in the
production of electricity, steam, and refrigeration and electric, steam,
and refrigeration services for sale that are exempted under subparagraph
(A) of this paragraph, shall not be entitled to the exemption provided
by paragraph one of subdivision (c) of this section.

(c) (1) Fuel, gas, 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 tangible
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 subdivisions
(a) and (b) of section eleven hundred five and the compensating use tax
imposed under section eleven hundred ten of this article.

(2) Fuel, gas, electricity, refrigeration and steam, and gas,
electric, refrigeration and steam service of whatever nature for use or
consumption either in the production of tangible personal property, for
sale, by farming or in a commercial horse boarding operation, or in
both, shall be exempt from the taxes imposed under subdivisions (a) and
(b) of section eleven hundred five and the compensating use tax imposed
under section eleven hundred ten of this article.

(d) Services otherwise taxable under paragraph (1), (2), (3), (7) or
(8) of subdivision (c) of section eleven hundred five shall be exempt
from tax under this article if the tangible property upon which the
services were performed is delivered to the purchaser outside this state
for use outside this state.

(e) Telephone and telegraph service paid for by inserting coins in
coin operated telephones where the charge is twenty-five cents or less
shall be exempt from the tax imposed under subdivision (b) of section
eleven hundred five. For the purposes of this subdivision, each payment
for overtime or additional usage beyond the initial usage period shall
be deemed to be a separate charge.

(f) (1) Services rendered by a veterinarian licensed and registered as
required by the education law which constitute the practice of
veterinary medicine as defined in said law, including hospitalization
for which no separate boarding charge is made, shall not be subject to
tax under paragraph (3) of subdivision (c) of section eleven hundred
five, but the exemption allowed by this subdivision shall not apply to
other services provided by a veterinarian to pets and other animals,
including, but not limited to, boarding, grooming and clipping. Articles
of tangible personal property designed for use in some manner relating
to domestic animals or poultry, when sold by such a veterinarian, shall
not be subject to tax under subdivision (a) of section eleven hundred
five or under section eleven hundred ten. However, the sale of any such
articles of tangible personal property to a veterinarian shall not be
deemed a sale for resale within the meaning of paragraph (4) of
subdivision (b) of section eleven hundred one and shall not be exempt
from retail sales tax.

(2) Drugs or medicine sold to or used by a veterinarian for use in
rendering services that are exempt pursuant to paragraph one of this
subdivision to livestock or poultry used in the production for sale of
tangible personal property by farming, or sold to a person qualifying
for the exemption provided for in paragraph six of subdivision (a) of
this section for use by such person on such livestock or poultry.

(g) Services otherwise taxable under paragraph (3) of subdivision (c)
of section eleven hundred five shall be exempt from tax (1) if performed
upon prosthetic aids, hearing aids, eyeglasses, artificial devices or
medical equipment when receipts from the retail sale of such items are
exempt from tax under the provisions of paragraphs three and four of
subdivision (a) of this section or (2) if performed upon tractors,
trailers or semi-trailers or on property installed on such vehicles for
their equipping, maintenance or repair when receipts from the retail
sale of such items are exempt from tax under the provisions of paragraph
twenty-six of subdivision (a) of this section.

(h) Sales of tangible personal property by a railroad in
reorganization to a profitable railroad, as such terms are defined in
section one hundred two of the rail reorganization act of nineteen
hundred seventy-three, as part of a plan of reorganization and
restructuring under such rail reorganization act, shall be exempt from
the tax on retail sales imposed under subdivision (a) of section eleven
hundred five and the compensating use tax imposed under section eleven
hundred ten.

(i) (A) Receipts from the retail sale of a shopping paper to the
publisher of such publication shall be exempt from the tax imposed by
subdivision (a) of section eleven hundred five of this article and
receipts from the sale of printing services performed in publishing such
paper shall be exempt from the tax imposed by paragraph two of
subdivision (c) of such section.

(B) For purposes of this subdivision, the term "shopping paper" shall
mean those community publications distributed to the public, without
consideration, for purposes of advertising and public information. To
qualify as a shopping paper for purposes of this subdivision, the
publication must also:

(1) be distributed to the public on a community-wide basis,

(2) be published at stated intervals at least fifty times a year;

(3) having continuity as to title and general nature of content from
issue to issue,

(4) contain in each issue news of general or community interest and
community notices or editorial comment or articles by different authors;

(5) not constitute a book, either singly or when successive issues are
put together;

(6) contain in each issue advertisements from numerous unrelated
advertisers;

(7) be independently owned in that the publication is not owned by or
under the control of the owners or lessees of a shopping center or a
merchants association or similar entity or a business which sells
property or services (other than advertising) and the advertisements in
such publication are not predominantly for the property or services sold
by such business; and

(8) meet the requirement set forth in paragraph (C) of this
subdivision.

(C) The advertisements in such publication shall not exceed ninety
percent of the printed area of all issues as averaged on an annual
basis.

(D) The term "shopping paper" shall not include mail order and other
catalogs, advertising fliers, travel brochures, house organs, theatre
programs, telephone directories, shipping and restaurant guides, racing
tip and form sheets, shopping center advertising sheets and similar
publications.

* (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
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, 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
farming 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
farmlands or adjacent lands used in a commercial horse boarding
operation, or both).

* NB Effective until September 1, 2026

* (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
farming 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
farmlands or adjacent lands used in a commercial horse boarding
operation, or both).

* NB Effective September 1, 2026

(k) Receipts from the sale of food eligible to be purchased with
coupons issued under or pursuant to the federal food stamp act of
nineteen hundred seventy-seven (7 U.S.C. § 2011 et seq.), as amended,
from retail food stores and other participants, approved for
participation under or pursuant to such act, shall be exempt from the
sales and compensating use taxes imposed under this article, when such
food is purchased with such coupons, but only so long as such act
conditions state participation in the federal food stamp program on this
state providing an exemption from state and local sales taxes for
purchases of food made with coupons issued under or pursuant to such act
and this state is participating in such program.

(l) Tangible personal property manufactured, processed or assembled
and donated by the manufacturer, processor or assembler to an
organization described in subdivision (a) of section eleven hundred
sixteen shall be exempt from tax under this article provided that the
manufacturer, processor or assembler offers the same kind of tangible
personal property for sale in the regular course of business and
provided further that the manufacturer, processor or assembler has not
made any other use of the tangible personal property which is donated.
Nothing in this subdivision shall be construed to allow a refund or
credit of tax properly paid pursuant to this article.

(m) (1) The services of training and maintaining a racehorse to race
in a race or race meeting held, maintained or conducted pursuant to the
racing, pari-mutuel wagering and breeding law or a similar law of
another state, when the services are rendered to the owner of the
racehorse by a trainer of the racehorse, shall be exempt from tax under
this article;

(2) Tangible personal property actually transferred by a trainer to
the owner of the racehorse in conjunction with the rendering of a
service that is exempt under paragraph one of this subdivision shall be
exempt from tax under this article. However, the sale to a trainer of
such a racehorse of any such tangible personal property or such services
taxable under this article shall not be deemed a sale for resale within
the meaning of paragraph four of subdivision (b) of section eleven
hundred one and shall not be exempt from retail sales or compensating
use tax;

(3) For purposes of this subdivision, a trainer means a horse trainer
licensed under the racing, pari-mutuel wagering and breeding law or a
similar law of another state, and a racehorse means a horse registered
with the jockey club, the United States trotting association, American
quarterhorse association or the National steeplechase and hunt
association or a horse, during the first twenty-four months of its life,
if it is eligible to be so registered.

(n) (1) Except as otherwise provided in this subdivision, promotional
materials mailed, shipped or otherwise distributed from a point within
the state, by or on behalf of vendors or other persons to their
customers or prospective customers located outside this state for use
outside this state shall be exempt from the tax on retail sales imposed
under subdivision (a) of section eleven hundred five and the
compensating use tax imposed under section eleven hundred ten of this
article.

(2) Services otherwise taxable under paragraph one or two of
subdivision (c) of section eleven hundred five of this article relating
to mailing lists or activities directly in conjunction with mailing
lists shall be exempt from tax under this article if such services are
performed on or directly in conjunction with promotional materials
exempt under paragraph one or four of this subdivision.

(3) Receipts from the retail sale of promotional materials, receipts
from every sale, except for resale, of services described in paragraph
one or two of subdivision (c) of section eleven hundred five to such
promotional materials and consideration given or contracted to be given
for either such materials or such services to such materials shall be
exempt from tax under this article to the extent of the vendor's
separately stated charge to the purchaser of such materials or services
for the vendor's cost to ship or deliver such materials to the
purchaser's customers or prospective customers by means of the United
States postal service, paid by the vendor to such postal service to ship
or deliver such materials, but only where the vendor separately states
such charge to ship or deliver (not exceeding the vendor's United States
postal service costs) in a written contract with the purchaser or on a
written bill rendered to the purchaser.

(4) Notwithstanding any contrary provisions of paragraph one of this
subdivision, promotional materials which are printed materials and
promotional materials upon which services described in paragraph two of
subdivision (c) of section eleven hundred five have been directly
performed shall be exempt from tax under this article where the
purchaser of such promotional materials mails or ships such promotional
materials, or causes such promotional materials to be mailed or shipped,
to its customers or prospective customers, without charge to such
customers or prospective customers, by means of a common carrier, United
States postal service or like delivery service.

(5) Services otherwise taxable under paragraph two of subdivision (c)
of section eleven hundred five performed on promotional materials exempt
under paragraph four of this subdivision shall be exempt from tax under
this article.

(6) Storing promotional materials exempt under paragraph four of this
subdivision shall be exempt from tax under this article where the vendor
of the storing service is also either the vendor of such exempt
promotional materials or the vendor who rendered exempt services under
paragraph two or five, or both, of this subdivision with respect to such
exempt promotional materials and the purchaser of the storing service is
the purchaser of such exempt promotional materials.

(7) Mechanicals, layouts, artwork, photographs, color separations and
like property shall be exempt from tax under this article where such
property is purchased, manufactured, processed or assembled by a person
who furnishes such property to a printer and the printer uses such
property directly and predominantly in the production of promotional
materials exempt under paragraph four of this subdivision, or in
performing services exempt under paragraph five of this subdivision, for
sale by such printer to the person who furnished such property to the
printer.

(8) Nothing in this subdivision shall be construed to exempt tangible
personal property (i) purchased by a person (other than exempt
promotional materials described in paragraph four of this subdivision)
or (ii) manufactured, processed or assembled by the manufacturer,
processor or assembler, who furnishes such property to the vendor of
promotional materials exempt under paragraph one or four of this
subdivision to be included as free gifts with such exempt promotional
materials to be mailed or shipped to such purchaser's or such
manufacturer's, processor's or assembler's customers or prospective
customers or who otherwise uses such property in this state, for
example, by giving or donating the property as free gifts to another
person, unless such tangible personal property is mailed, shipped or
otherwise distributed from a point within this state to such customers
or prospective customers located outside this state for use outside this
state.

(o) Services otherwise taxable under subdivision (c) of section eleven
hundred five or under section eleven hundred ten shall be exempt from
tax under this article where performed on computer software of any
nature; provided, however, that where such services are provided to a
customer in conjunction with the sale of tangible personal property any
charge for such services shall be exempt only when such charge is
reasonable and separately stated on an invoice or other statement of the
price given to the purchaser.

(q) Services otherwise taxable under paragraph three of subdivision
(c) of section eleven hundred five or under section eleven hundred ten
of this article, and tangible personal property purchased and used by
the person who sells such services in performing such services, where
such property becomes a physical component part of the property upon
which the services are performed, shall be exempt from tax under this
article where such services are performed on a barge which is not self
propelled, has a cargo capacity of at least one thousand short tons, is
used exclusively by the owner, lessee or operator of the barge to
transport goods or other property in the conduct of such person's
business and is primarily engaged in interstate or foreign commerce.

(r) Receipts from the sale of alarm call services designed
specifically to respond to medical emergencies and the use of such
services, otherwise taxable under paragraph eight of subdivision (c) of
section eleven hundred five or under clause (C) of subdivision (a) of
section eleven hundred ten of this article, shall be exempt from such
taxes.

* (s) The exemptions provided in this section shall not apply to the
tax required to be prepaid pursuant to the provisions of section eleven
hundred three of this article.

* NB There are 2 sub (s)'s

* (s) (1) The sale of any good or service necessary for the
acquisition, sustenance or maintenance of a guide dog, a hearing dog or
a service dog, as defined in section one hundred eight of the
agriculture and markets law, which is utilized by any person with a
disability, shall be exempt from taxation pursuant to this article.

(2) For the purposes of this subdivision, "person with a disability"
shall mean any person with a disability as that term is defined in
subdivision twenty-one of section two hundred ninety-two of the
executive law who uses a guide dog, hearing dog, or service dog to do
work or perform tasks for such person, with respect to such disability
and for which such dog is trained.

(3) The commissioner shall create and implement a means of identifying
persons who make purchases which shall be exempt pursuant to this
subdivision. Such persons shall include persons who have a dependent
with a disability, and who makes purchases on behalf of such dependent.
Only persons presenting such means of identification shall receive the
exemption granted pursuant to this subdivision. Furthermore, the
commissioner shall promulgate any rules and regulations necessary to
implement the provisions of this subdivision.

* NB There are 2 sub (s)'s

(t) (1) Receipts of a car wash facility from every sale, except for
resale, of the service of washing, waxing or vacuuming a motor vehicle
or other tangible personal property and consideration given or
contracted to be given for such service at such a facility, where (i)
the motor vehicle or other tangible personal property is washed, waxed
or vacuumed at such facility by means exclusively of coin-operated
equipment at such facility of the vendor providing the service; and (ii)
neither the vendor nor any employee of the vendor assists in washing,
waxing or vacuuming the motor vehicle or other tangible personal
property; and (iii) the purchaser or user of the service washes, waxes
or vacuums such person's motor vehicle or other tangible personal
property at such a facility, or (iv) the motor vehicle or other tangible
personal property is washed, waxed or vacuumed by automated equipment
without assistance by the purchaser or user of the service, shall be
exempt from tax under this article, to the extent of the amount of money
or value, in money, of tokens deposited in such coin-operated equipment
by the purchaser of the service.

(2) Except to the extent exempt under paragraph one of this
subdivision receipts from every sale, except for resale, of the service
of vacuuming a motor vehicle or other tangible personal property and
consideration given or contracted to be given for such service, where
the purchaser or user of the service vacuums such person's motor vehicle
or other tangible personal property at the facility where the vacuum
equipment is located, by means exclusively of coin-operated equipment
and neither the vendor operating the facility nor any employee of the
vendor assists the purchaser in vacuuming the vehicle or other tangible
personal property, shall be exempt from tax under this article, to the
extent of the amount of money or value, in money, of tokens deposited in
such coin-operated equipment by the purchaser of the service.

(3) For purposes of this subdivision, the term "coin-operated"
includes coin-operated, currency-operated or token-operated and the term
"motor vehicle" shall mean a motor vehicle as defined in subdivision (f)
of section eleven hundred thirty-two of this article.

(u) Receipts from every sale of the services described in paragraph
three of subdivision (c) of section eleven hundred five of this article
to omnibuses, parts, equipment and lubricants exempt from tax under
paragraph thirty-two of subdivision (a) of this section shall be exempt
from tax under this article. Where receipts from the sale of or
consideration given or contracted to be given for the purchase of a
service have been exempted under this subdivision, such receipts or
consideration shall not also qualify for the refund or credit described
in subdivision (b) of section eleven hundred nineteen of this article;
where any or all of the tax on receipts from the sale of or
consideration given or contracted to be given for the purchase of a
service has been refunded or credited under such subdivision (b), no
part of such receipts or consideration shall be exempt under this
subdivision.

(v) Receipts from the sale of Internet access service, including
start-up charges, and the use of such service, shall be exempt from the
taxes imposed under this article. For purposes of this subdivision, the
term "Internet access service" shall mean the service of providing
connection to the Internet, but only where such service entails the
routing of Internet traffic by means of accepted Internet protocols. The
provision of communication or navigation software, an e-mail address,
e-mail software, news headlines, space for a website and website
services, or other such services, in conjunction with the provision of
such connection to the Internet, where such services are merely
incidental to the provision of such connection, shall be considered to
be part of the provision of Internet access service.

* (w) Receipts from the sale of gas or electricity or gas or electric
service of whatever nature and consideration given or contracted to be
given for, or for the use of, gas or electricity or gas or electric
service of whatever nature purchased for use or consumption directly 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 whatever 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 pressure 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 heaters to prevent gas
in such a pipeline or distribution line from freezing, (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) ensure the reliability of
electricity or electric service transmitted or distributed through such
lines, for example, by operating reserve capacity machinery and
equipment.

* NB There are 2 sub. (w)'s

* (w) Receipts from sales by a senior citizen independent housing
community of food or drink (other than beer, wine or other alcoholic
beverages) for consumption on the premises of such community (1) to its
residents and (2) to guests of such residents, provided that the dining
facility where food and drink is served to such residents and their
guests is not open to the public, shall be exempt from the tax imposed
by subdivision (d) of section eleven hundred five of this article,
provided that any such food or drink shall be exempt only where it is
served at the dining facility at such community or served to the
residents or the residents' guests in the residents' rooms. For the
purposes of this subdivision, the term "senior citizen" means a person
at least fifty-five years of age and the term "senior citizen
independent housing community" means a residential facility, with or
without additional facilities such as recreational facilities, which is
designed for senior citizens, the residents of which are senior
citizens, spouses of such senior citizens or any other person, not
necessarily related, who has resided with a senior citizen for at least
six months and persons hired to provide live-in, long term care to a
resident and who are actually providing such care to such a resident for
compensation. Nothing in this subdivision shall be construed to apply to
food or drink sold or served at a hotel, motel, rooming house or other
similar establishment or at a restaurant, tavern or other similar
establishment. The exemption provided by this subdivision shall not be
construed to apply to food or drink sold through vending machines.

* NB There are 2 sub. (w)'s

(x) Receipts from every sale of, and consideration given or contracted
to be given for, or for the use of, the following tangible personal
property and services shall be exempt from the taxes imposed by this
article:

(1) Tangible personal property for use or consumption directly and
predominantly in production of live dramatic or musical arts
performances in a theater or other similar place of assembly (but not
including a roof garden, cabaret or other similar place), with a seating
capacity of one hundred or more chairs that are rigidly anchored to the
construction or fixed in place so as to prevent movement in any
direction, but only where it can be shown at the time such tangible
personal property is purchased that such performances are to be
presented to the public in such theater or other similar place on a
regular basis of at least five performances per week for a period of at
least two consecutive weeks, the content of each such performance shall
be the same and a charge is or is to be made for admission to the place
where such performances occur. For purposes of this subdivision, the
term "place of assembly" shall mean a place of assembly with a stage in
which scenery and scenic elements are used, as described in section
27-232 and subdivision (a) of section 27-255 of the administrative code
of the city of New York (as such section and subdivision exist on
January first, nineteen hundred ninety-eight), and for which an approved
seating plan is required to be kept, as described in section 27-528 of
the administrative code of the city of New York (as such section exists
on January first, nineteen hundred ninety-eight), whether or not such
theater or other similar place is located in such city. Nothing in this
paragraph shall be construed to exempt tangible personal property which
is permanently affixed to, or becomes an integral component part of, a
structure, building, or real property.

(2) Services described in paragraph two or three of subdivision (c) of
section eleven hundred five of this article when rendered with respect
to property exempt under paragraph one of this subdivision.

(y) Services otherwise taxable under paragraph three, five or eight of
subdivision (c) of section eleven hundred five or under section eleven
hundred ten of this article shall be exempt from any tax imposed
pursuant to such provisions where such services are rendered directly to
or in relation to the property exempt from tax pursuant to paragraph
thirty-seven of subdivision (a) of this section, provided however where
any such services are rendered to property or in relation to property
which was in part not exempt under such paragraph thirty-seven, the
commissioner shall provide for a method of allocation to exempt a
portion of such services.

(aa)(1) The following services shall be exempt when rendered to a
broadcaster in connection with its broadcasting business:

(i) The services described in paragraph two of subdivision (c) of
section eleven hundred five of this article and the services of editing,
dubbing, and mixing when performed in connection with the production,
post-production or transmission of live or recorded programs described
in subparagraph (A) of paragraph thirty-eight of subdivision (a) of this
section.

(ii) The services described in paragraph three of subdivision (c) of
section eleven hundred five of this article when performed on the
tangible personal property described in paragraph thirty-eight of
subdivision (a) of this section.

(iii) The services described in paragraph five of subdivision (c) of
section eleven hundred five of this article when performed on property
described in paragraph thirty-eight of subdivision (a) of this section
which subsequent to its installation has become an addition or capital
improvement to real property, property or land, as such terms are
defined in the real property tax law.

(2) For purposes of this subdivision: the terms "broadcaster",
"programs", and "recorded programs" shall have the same meaning as that
ascribed to those terms in subparagraph (C) of paragraph thirty-eight of
subdivision (a) of this section.

(bb) 1. Receipts from the sale of services described in paragraph two
or three of subdivision (c) of section eleven hundred five of this
article, and consideration given or contracted to be given for, or for
the use of, such services, shall be exempt from tax under this article
when rendered with respect to property exempt under paragraph
thirty-nine of subdivision (a) of this section.

2. Fuel, gas, 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 a film for
sale, as described in paragraph thirty-nine of subdivision (a) of this
section, shall be exempt from the taxes imposed under subdivisions (a)
and (b) of section eleven hundred five and the compensating use tax
imposed under section eleven hundred ten of this article.

(cc) Notwithstanding any other provision of law to the contrary,
receipts from the sale of mobile telecommunications service by a home
service provider shall be exempt from the taxes imposed by subparagraph
(B) of paragraph one and paragraph two of subdivision (b) of section
eleven hundred five of this article if the mobile telecommunications
customer's place of primary use is within a taxing jurisdiction outside
this state.

(dd) (1) Services otherwise taxable under paragraph three of
subdivision (c) of section eleven hundred five or under section eleven
hundred ten of this article, and tangible personal property purchased
and used by the person who sells such services in performing such
services, where such property becomes a physical component part of the
property upon which the services are performed or where such property is
a lubricant applied to aircraft, shall be exempt from tax under this
article where such services are performed on aircraft.

(2) The service of storing an aircraft provided by a person who sells
a service exempt under paragraph one of this subdivision, when such
storing is rendered in conjunction with, and during the rendering of,
such service to such aircraft, shall be exempt from the tax imposed
under paragraph four of subdivision (c) of section eleven hundred five
of this article.

* (ee) The following shall be exempt from tax under this article: (1)
Receipts from the retail sale of, and consideration given or contracted
to be given for, or for the use of, residential solar energy systems
equipment and the service of installing such systems. For the purposes
of this subdivision, "residential solar energy systems equipment" shall
mean an arrangement or combination of components installed in a
residence that utilizes solar radiation to produce energy designed to
provide heating, cooling, hot water and/or electricity. Such arrangement
or components shall not include equipment that is part of a non-solar
energy system or which uses any sort of recreational facility or
equipment as a storage medium.

(2) Receipts from the sale of electricity by a person primarily
engaged in the sale of solar energy system equipment and/or electricity
generated by such equipment pursuant to a written agreement under which
such electricity is generated by residential solar energy system
equipment that is: (A) owned by a person other than the purchaser of
such electricity; (B) installed on residential property of the purchaser
of such electricity; and (C) used to provide heating, cooling, hot water
or electricity to such property.

* NB There are 2 sb (ee)'s

* (ee) (1) Tangible personal property purchased by a tenant for use
directly and exclusively to furnish and equip the tenant's leased
premises for use as commercial office space shall be exempt from the
taxes imposed by sections eleven hundred five and eleven hundred ten of
this article. Provided, however, no exemption shall exist under this
paragraph unless such tangible personal property is to become an
integral component part of the building in which such leased premises
are located.

(2) Tangible personal property purchased by a tenant or landlord for
use directly and exclusively in adding to, altering or improving the
tenant's leased premises for use as commercial office space shall be
exempt from the taxes imposed by sections eleven hundred five and eleven
hundred ten of this article. Provided, however, no exemption shall exist
under this paragraph unless such tangible personal property is to become
an integral component part of the building in which such leased premises
are located.

(3) Tangible personal property sold to a contractor, subcontractor or
repairperson for use directly and exclusively in adding to, altering or
improving a tenant's leased premises for use as commercial office space
shall be exempt from the taxes imposed by sections eleven hundred five
and eleven hundred ten of this article. Provided, however, no exemption
shall exist under this paragraph unless such tangible personal property
is to become an integral component part of the building in which such
leased premises are located.

(4) The service of installing property exempt under paragraph one or
two of this subdivision shall be exempt from the tax imposed by
paragraph three of subdivision (c) of section eleven hundred five of
this article.

(5) The exemptions in this subdivision shall apply only to purchases
or sales made, uses occurring and services rendered during the period
commencing on the first day of the tenant's lease term and ending one
year later, provided that any such property must be delivered to the
tenant's leased premises for use at or in such premises, and such
services must be rendered there in full, no later than ninety days after
the end of such year; and provided, further, that, with respect to
leased or rented tangible personal property, such exemptions shall apply
only to lease or rental payments required to be paid during such year.
Nothing in this subdivision shall be construed to exempt tangible
personal property for use in erecting or adding to a structure or
building of a landlord.

(6) When applying the exemptions in paragraphs one and two of this
subdivision with respect to leased premises located in the World Trade
Center site, the world financial center and the Battery Park city area,
such paragraphs shall be read without regard to the requirement set
forth in the last sentence of each such paragraph that tangible personal
property is to become an integral component part of the building in
which such leased premises are located.

(7) For purposes of this subdivision:

(A) "Tenant" means a person who, as lessee, enters into a space lease
with a landlord for a term of ten years or more commencing on or after
September first, two thousand five, but not later than, in the case of a
space lease with respect to leased premises located in eligible areas as
defined in clause (i) of subparagraph (D) of this paragraph, September
first, two thousand twenty-three and, in the case of a space lease with
respect to leased premises located in eligible areas as defined in
clause (ii) of subparagraph (D) of this paragraph not later than
September first, two thousand twenty-five, of premises for use as
commercial office space in buildings located or to be located in the
eligible areas. A person who currently occupies premises for use as
commercial office space under an existing lease in a building in the
eligible areas shall not be eligible for exemption under this
subdivision unless such existing lease, in the case of a space lease
with respect to leased premises located in eligible areas as defined in
clause (i) of subparagraph (D) of this paragraph expires according to
its terms before September first, two thousand twenty-three or such
existing lease, in the case of a space lease with respect to leased
premises located in eligible areas as defined in clause (ii) of
subparagraph (D) of this paragraph and such person enters into a space
lease, for a term of ten years or more commencing on or after September
first, two thousand five, of premises for use as commercial office space
in a building located or to be located in the eligible areas, provided
that such space lease with respect to leased premises located in
eligible areas as defined in clause (i) of subparagraph (D) of this
paragraph commences no later than September first, two thousand
twenty-three, and provided that such space lease with respect to leased
premises located in eligible areas as defined in clause (ii) of
subparagraph (D) of this paragraph commences no later than September
first, two thousand twenty-five and provided, further, that such space
lease shall expire no earlier than ten years after the expiration of the
original lease.

(B) "Leased premises" means the premises within a building to be used
as commercial office space under a lease described in subparagraph (A)
of this paragraph, excluding any common areas and any other area outside
such office space.

(C) "Landlord" means the person, unrelated by ownership to a tenant,
who leases leased premises to that tenant.

(D) "Eligible areas" mean: **(i) the area in the borough of Manhattan
bounded by Murray street on the north starting at the intersection of
West street and Murray street; running easterly along the center line of
Murray street, connecting through City Hall Park with the center line of
Frankfort street and running easterly along the center lines of
Frankfort and Dover streets to the intersection of Dover street and
South street; running southerly along the center line of South street to
Peter Minuit Plaza; connecting through Peter Minuit Plaza to the center
line of State street and running northwesterly along the center line of
State street to the intersection of State street and Battery Place;
running westerly along the center line of Battery Place to the
intersection of Battery Place and West street; and running northerly
along the center line of West street to the intersection of West street
and Murray street. In addition, "eligible area" shall include the
"Battery Park project area" as defined in section nineteen hundred
seventy-two of the public authorities law, including the world financial
center. Any tax lot that is partly located inside the eligible area
shall be deemed to be entirely located inside such area, and

** NB Repealed December 1, 2024

(ii) the World Trade Center site, the World financial center and the
Battery Park city area as defined as follows:

(a) "World Trade Center site" means the area of the former complex of
seven buildings (known as numbers one through seven world trade center)
around a central plaza, near the south end of the county of New York in
the downtown financial district, which were destroyed or damaged beyond
repair in the attacks of September eleventh, two thousand one.

(b) "World financial center" means the complex of buildings known as
numbers one through four world financial center, in an area in the
county of New York bordered by West street, the Hudson River, and Vesey
and Liberty streets.

(c) "Battery Park city area" means the "Battery Park project area" as
defined in section nineteen hundred seventy-two of the public
authorities law, including the world financial center.

(8) Notwithstanding any provision of law to the contrary, this
subdivision shall also apply to the taxes imposed by section eleven
hundred seven and the taxes imposed by section eleven hundred nine of
this article, but shall not apply to the taxes imposed by section eleven
hundred eight of this article or pursuant to the authority of article
twenty-nine of this chapter other than taxes imposed by a city of a
million or more pursuant to the authority of subdivision (a) of section
twelve hundred ten of such article twenty-nine.

* NB Repealed December 1, 2026

* NB There are 2 sb (ee)'s

(ff) Receipts from retail sales of tangible personal property by any
gift shop located in a veteran's home described in title thirty-eight of
the United States Code shall be exempt from the taxes imposed by this
article.

(gg) (1) Receipts from the sale of an electronic news service and
consideration given or contracted to be given for, or for the use of, an
electronic news service shall be exempt from the taxes imposed by
paragraph one or nine of subdivision (c) of section eleven hundred five
of this article and clause (C) of subdivision (a) of section eleven
hundred ten of this article if the receipts from the sale of, or the
consideration given for, or for the use of, the electronic news service
does not exceed the cap amount as defined in subparagraph (ii) of
paragraph thirty-seven of subdivision (b) of section eleven hundred one
of this article. If the subscription period of the electronic news
service is other than a year, the cap amount shall be adjusted
proportionately in determining whether the subscription price exceeds
the cap amount. If the contract for the sale of the electronic news
service grants more than one person the right to view the electronic
news service, the receipts from the sale of, or the consideration given
for, or for the use of, the service will be deemed not to exceed the cap
amount only if the listed selling price for an individual subscription
on the day the contract commences does not exceed the cap amount.

(2) Receipts from the sale of an electronic periodical and
consideration given, or contracted to be given for, or for the use of,
an electronic periodical shall be exempt from the taxes imposed by
paragraph one or nine of subdivision (c) of section eleven hundred five
and clause (C) of subdivision (a) of section eleven hundred ten of this
article.

(3) If an electronic periodical is sold together with any other
components that are taxable under this article (other than an electronic
news service) for a single price, the exemption in paragraph two of this
subdivision shall not apply to the receipts from the sale of, or
consideration given, or contracted to be give for, or for the use of,
the electronic periodical and such other components unless the vendor
sells such electronic periodical and such other components separately in
the regular course of business. If the requirement in the preceding
sentence is satisfied, then the exemption will apply to an amount equal
to the bundled price multiplied by a fraction, the numerator of which is
the price of the electronic periodical when sold separately and the
denominator of which is the sum of the price of the electronic
periodical when sold separately and the price of the other components of
the transaction when sold separately.

(4) If an electronic news service is sold together with other
components for a single price, the exemption in paragraph one of this
subdivision shall not apply to the receipts from the sale of, or
consideration given, or contracted to be given, for, or for the use of,
the electronic news service and the other components in the transaction
unless one of the following exceptions applies and only to the extent
indicated:

(i) The provider of the electronic news service does not separately
sell the electronic news service in the regular course of business, the
other components are not taxable under this article, and the bundled
price is less than the cap amount, in which case the exemption applies
to the full bundled price; or

(ii) The provider of the electronic news service sells the electronic
news service and each of the other components of the transaction
separately in the regular course of business, whether or not the
components are taxable under this article, and the separate price of the
electronic news service does not exceed the cap amount. If the
conditions in this subparagraph are met, the exemption provided by
paragraph one of this subdivision will apply only to an amount equal to
the bundled price multiplied by a fraction, the numerator of which is
the price of the electronic news service when sold separately in the
regular course of business, and the denominator of which is the sum of
the price of the electronic news service when sold separately in the
regular course of business and the prices of the other components when
sold separately in the regular course of business; provided, however,
that in no case shall the exempt amount be greater than the amount of
the charge for the electronic news service when sold separately in the
regular course of business.

(5) For the purposes of this subdivision "bundled price" means the
price at which an electronic news service or an electronic periodical is
sold together with any other components for one price; and "component"
means any property, service, or other item of whatever nature that is
sold together with an electronic news service or electronic periodical
for one price.

(6) Nothing in this subdivision shall exempt, or be construed to
exempt, any separate charge by the vendor of an electronic news service
or electronic periodical for other information services, or any other
property or service subject to tax under this article, that does not
constitute an electronic news service or electronic periodical.

(hh) Receipts from the sale of transportation service consisting of a
HAIL vehicle trip, as the term "HAIL vehicle trip" is defined in article
twenty-nine-A of this chapter, shall be exempt from the tax imposed by
paragraph ten of subdivision (c) of section eleven hundred five of this
article, if such trip originates in a city of a million or more and
terminates anywhere within the territorial boundaries of the
metropolitan commuter transportation district and is subject to the tax
on HAIL vehicle trips imposed by such article twenty-nine-A.

* (ii) The following shall be exempt from tax under this article: (1)
Receipts from the retail sale of, and consideration given or contracted
to be given for, or for the use of, commercial solar energy systems
equipment and the service of installing such systems. For the purposes
of this subdivision, "commercial solar energy systems equipment" shall
mean an arrangement or combination of components installed upon
non-residential premises that utilize solar radiation to produce energy
designed to provide heating, cooling, hot water and/or electricity. Such
arrangement or components shall not include equipment that is part of a
non-solar energy system.

(2) Receipts from the sale of electricity by a person primarily
engaged in the sale of solar energy system equipment and/or electricity
generated by such equipment pursuant to a written agreement under which
the electricity is generated by commercial solar energy system equipment
that is: (A) owned by a person other than the purchaser of such
electricity; (B) installed on the non-residential premises of the
purchaser of such electricity; and (C) used to provide heating, cooling,
hot water or electricity to such premises.

* NB There are 2 sb (ii)'s

* (ii) Receipts from sales of and fees associated with water and sewer
service line protection programs sold to owners of residential property
shall be exempt from the taxes imposed by this article.

* NB There are 2 sb (ii)'s

* (jj) Notwithstanding any other provision of this article: (1)
Receipts in excess of two hundred thirty thousand dollars from every
sale of, and consideration given or contracted to be given for, or for
the use of, a vessel shall be exempt from the taxes imposed by this
article. For purposes of this subdivision, "vessel" shall have the same
meaning as such term is defined in section twenty-two hundred fifty of
the vehicle and traffic law and any outboard motor or trailer, as
defined in section one hundred fifty-six of such law, when sold in
conjunction with such vessel.

(2) For purposes of subdivision (b) of section eleven hundred eleven
of this article, the purchase price, current market value, or fair
rental value, as the case may be, of a vessel purchased by a resident of
New York state outside of this state for use outside of this state that
subsequently becomes subject to the compensating use tax imposed under
this article shall be deemed not to exceed two hundred thirty thousand
dollars.

(3) For purposes of subdivision (i) of section eleven hundred eleven
of this article, receipts from, or consideration given or contracted to
be given for, the lease of a vessel that is subject to such subdivision
(i) in excess of two hundred thirty thousand dollars shall be exempt
from the calculation of tax due under such subdivision (i).

(4) For purposes of paragraph one of subdivision (q) of section eleven
hundred eleven of this article, the limitations on exclusions from the
definition of retail sale in paragraph one of such subdivision shall
apply only to the first two hundred thirty thousand dollars of receipts
from every sale of, or consideration given or contracted to be given
for, or for the use of, a vessel.

(5) For purposes of paragraph two of subdivision (q) of section eleven
hundred eleven of this article, the purchase price or market value, as
the case may be, of a vessel subject to tax under paragraph two of such
subdivision (q) shall be deemed not to exceed two hundred thirty
thousand dollars.

(6) For purposes of subdivision two of section eleven hundred eighteen
of this article, the limitation on the exclusion from compensating use
tax in such subdivision two with respect to qualified property, as
defined in such subdivision, shall apply only to the first two hundred
thirty thousand dollars of consideration given or contracted to be given
for, or for the use of, a vessel.

(7) For purposes of paragraph (a) of subdivision seven of section
eleven hundred eighteen of this article, the refund or credit allowable
under paragraph (a) of such subdivision seven shall be computed only
with regard to tax legally due and paid to another state on the first
two hundred thirty thousand dollars of the purchase price.

(8) Except as otherwise provided herein, this subdivision shall not be
deemed to limit any other exemption, exclusion or credit in this article
relating to a vessel.

* NB There are 2 sb (jj)'s

* (jj) Tangible personal property or services otherwise taxable under
this article sold to a related person shall not be subject to the taxes
imposed by section eleven hundred five of this article or the
compensating use tax imposed under section eleven hundred ten of this
article where the purchaser can show that the following conditions have
been met to the extent they are applicable: (1)(i) the vendor and the
purchaser are referenced as either a "covered company" as described in
section 243.2(f) or a "material entity" as described in section 243.2(l)
of the Code of Federal Regulations in a resolution plan that has been
submitted to an agency of the United States for the purpose of
satisfying subparagraph 1 of paragraph (d) of section one hundred
sixty-five of the Dodd-Frank Wall Street Reform and Consumer Protection
Act (the "Act") or any successor law, or (ii) the vendor and the
purchaser are separate legal entities pursuant to a divestiture directed
pursuant to subparagraph 5 of paragraph (d) of section one hundred
sixty-five of such act or any successor law; (2) the sale would not have
occurred between such related entities were it not for such resolution
plan or divestiture; and (3) in acquiring such property or services, the
vendor did not claim an exemption from the tax imposed by this state or
another state based on the vendor's intent to resell such services or
property. A person is related to another person for purposes of this
subdivision if the person bears a relationship to such person described
in section two hundred sixty-seven of the internal revenue code. The
exemption provided by this subdivision shall not apply to sales made,
services rendered, or uses occurring after June thirtieth, two thousand
twenty-four, except with respect to sales made, services rendered, or
uses occurring pursuant to binding contracts entered into on or before
such date; but in no case shall such exemption apply after June
thirtieth, two thousand twenty-seven.

* NB There are 2 sb (jj)'s

* (kk) Rent paid by a room remarketer to an operator that is not a
room remarketer for an occupancy that the room remarketer intends to
provide to an occupant for rent shall be exempt from the hotel unit fee
imposed by section eleven hundred four of this article and the tax
imposed by subdivision (e) of section eleven hundred five of this
article, provided that such room remarketer furnishes such operator a
certificate in such form and containing such information as may be
prescribed by the commissioner. The exemption certificate provided for
by this subdivision shall be administered by the commissioner in
conformity with the rules for exemption or resale certificates in
subparagraph (i) of paragraph one of subdivision (c) of section eleven
hundred thirty-two of this article.

* NB There are 2 sb (kk)'s

* (kk) The following shall be exempt from tax under this article: (1)
Receipts from the retail sale of, and consideration given or contracted
to be given for, or for the use of, commercial fuel cell electricity
generating systems equipment and the service of installing and
maintaining such systems. For the purposes of this subdivision, "fuel
cell electricity generating systems equipment" shall mean an electric
generating arrangement or combination of components installed upon
non-residential premises that utilize solid oxide, molten carbonate,
proton exchange membrane or phosphoric acid fuel cell, or for the
purposes of this section only, linear generator.

(2) Receipts from the sale of hydrogen gas or electricity by a person
primarily engaged in the sale of fuel cell electricity generating system
equipment and/or electricity generated by such equipment pursuant to a
written agreement under which the electricity is generated by commercial
fuel cell electricity generating system equipment that is: (A) owned by
a person other than the purchaser of such electricity; (B) installed on
the non-residential premises of the purchaser of such electricity; (C)
placed in service; and (D) used to provide heating, cooling, hot water
or electricity to such premises.

* NB There are 2 sb (kk)'s