Page 4 of 4 ST-120.1 (9/21)
J.Commercial fuel cell systems equipment. Commercial fuel cell systems equipment means an electric generating arrangement or combination of components that is installed upon nonresidential premises and utilizes solid oxide, molten carbonate, a proton exchange membrane, phosphoric acid, or a linear generator to provide heating, cooling, hot water, or electricity. The exemption is allowed on the 4% New York State tax rate and the ⅜% MCTD rate, if applicable. The exemption does not apply to local taxes unless the locality specifically enacts the exemption.
The customer must furnish the contractor a completed Form ST-121 by completing the box marked Other (U.). See TSB-M-16(3)S, Sales and Use Tax Exemptions Related
to Commercial Fuel Cell Systems Equipment, for more information.
K.For use in a project for an exempt HDFC that has furnished the contractor with a copy of the exemption letter issued to them by the Tax Department.
This certificate may also be used by a contractor to claim
exemption from tax on the following services:
L.Installing tangible personal property, including production machinery and equipment, that does not become a part of the real property upon installation.
Repairing real property, when the services are for the project named on page 1 of this form and will be resold.
Trash removal services rendered in connection with repair services to real property, if the trash removal services will be resold.
Note: Purchases of services for resale can occur between prime contractors and subcontractors or between two subcontractors. The retail seller of the services, generally the prime contractor, must charge and collect tax on the contract price, unless the project owner gives the retail seller of the service a properly completed exemption certificate.
M.Installing, maintaining, servicing, or repairing tangible personal property used for Web hosting, telecommunication or Internet access services, or by a broadcaster (described in item C on page 3).
N.Installing, maintaining, servicing, or repairing tangible personal property that will be used predominantly either in farm production or in a commercial horse boarding operation, or in both (described in item E on page 3).
O.Installing qualifying residential or commercial solar energy systems equipment (described in item G on page 3).
P.Installing tangible personal property delivered to and used directly and exclusively in adding to, altering, or improving a qualifying tenant’s leased premises for use as commercial office space in Eligible Area A or B as described in TSB‑M‑05(12)S, provided that the tangible personal property becomes an integral component part of the building in which the leased premises are located.
Q.Installing or maintaining commercial fuel cell systems equipment (described in item J above).
Misuse of this certificate
Misuse of this exemption certificate may subject you to serious civil and criminal sanctions in addition to the payment of any tax and interest due. These include:
•a penalty equal to 100% of the tax due;
•a $50 penalty for each fraudulent exemption certificate issued;
•criminal felony prosecution, punishable by a substantial fine and a possible jail sentence; and
•revocation of your Certificate of Authority, if you are required to be registered as a vendor. See TSB-M-09(17)S,
Amendments that Encourage Compliance with the Tax Law and Enhance the Tax Department’s Enforcement Ability, for more information.
To the seller
When making purchases that qualify for exemption from sales and use tax, the contractor must provide you with this exemption certificate with all entries completed to establish the right to the exemption.
As a New York State registered vendor, you may accept an exemption certificate in lieu of collecting tax and be protected from liability for the tax if the certificate is valid. The certificate will be considered valid if it is:
•accepted in good faith;
•in your possession within 90 days of the transaction; and
•properly completed (all required entries were made).
An exemption certificate is accepted in good faith when you have no knowledge that the exemption certificate is false or is fraudulently given, and you exercise reasonable ordinary due care. If you do not receive a properly completed certificate within 90 days after the delivery of the property or service, you will share with the purchaser the burden of proving the sale was exempt.
Failure to collect sales or use tax, as a result of accepting an improperly completed exemption certificate or receiving the certificate more than 90 days after the sale, will make you personally liable for the tax plus any penalty and interest charges due.
You must maintain a method of associating an invoice (or other source document) for an exempt sale with the exemption certificate you have on file from the purchaser. You must also keep this certificate at least three years after the due date of your sales tax return to which it relates, or the date the return was filed, if later.
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