New York State manufacturers last year won elimination of the gross receipts tax (GRT) on energy, but they will benefit only if they fill out and submit a new state tax form created for this purpose.
Businesses classified by the state as "industrial and manufacturing businesses" must submit new state tax form DTF-623 to receive a new credit against their business income taxes.
For eligible industrial and manufacturing businesses that have a tax liability at a non-reducible minimum, the credit is fully refundable, said Rich Schwarz, The Business Council's tax counsel.
This tax credit, combined with future PSC rate-settings, effectively repeal both the GRT and the gas import privilege tax for manufacturers, effective January of 2000.
State lawmakers last year repealed the GRT for businesses' energy GRT with strong Business Council support. The repeal was retroactive to Jan. 1, 2000 for manufacturers. It is being phased in gradually for other businesses; for them, it will be fully eliminated by January 2005.