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Schedule B: Taxes on Utilities and Heating Fuels

 Complete Schedule B if you:

• Provide nonresidential utility services in the city school districts (including the counties and cities in which they are located) listed.
• Provide nonresidential electricity sold under a solar PPA in the school districts, cities and counties listed.
• Provide nonresidential electricity and hydrogen generated by commercial fuel cell systems equipment in the school districts, cities and counties listed.
• Provide residential energy sources and services subject to tax.
• Provide residential electricity sold under a solar PPA in the school districts or localities listed.
• Are a vendor supplying the above services or are billing tenants on a sub-metering basis.
• Purchased the above services or property without payment of tax (under direct payment permits, exempt purchase certificates, or otherwise).

Business activity: If you are normally required to file this schedule but you have nothing to report on it for this filing period, select "No."

Residential services: New York State does not impose tax on residential energy sources and services. The jurisdictions listed in these sections impose a local tax on residential energy services. If a jurisdiction is not listed, it does not impose tax on residential energy. Sales in these localities are exempt.  For more information, see Tax Bulletin Residential Energy Sources and Services (TB-ST-775).

Nonresidential services: Sales of nonresidential utilities, and all sales of refrigeration services, are subject to full state and local tax. Jurisdictions listed in this section also impose an additional tax on nonresidential utility services, or require separate reporting for distribution purposes.  Sales in jurisdictions not listed in this section are reported on the appropriate jurisdiction line on your main return. 

Effective June 1, 2016, the  Tax Law provides an exemption from sales and use tax for qualifying sales of nonresidential electricity and hydrogen generated by commercial fuel cell systems equipment. These sales are exempt from the 4% state and the 3/8% Metropolitan Commuter Transportation District (MCTD) sales and use taxes. Counties, cities, and certain school districts that impose local sales and use taxes on sales of nonresidential utilities can elect to provide this new exemption.  For more information about qualifying for the exemption, see TSB-M-16(3)S, Sales and Use Tax Exemptions Related to Commercial Fuel Cell Systems Equipment.

Credits against taxable sales and services: Credits that can be identified by locality must be claimed on the appropriate jurisdiction line. For example, if you charge tax to a customer and later determine that the sale is exempt and you refund the tax to the customer, you may claim a credit for the tax you collected. For more information on credits, see Claiming credits on your sales tax return.

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