INFORMATION REQUIRED FROM ELIGIBLE ENERGY USERS

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NEW YORK CITY DEPARTMENT OF FINANCE

CLAIM FOR ENERGY COST SAVINGS PROGRAM CREDITUnder Sections 11.503(h), 11-604.16, 11-643.5(c), 11-704.1 and Ch. 6 of Title 22 of the Administrative Code

N Y C

ECS

SOCIALSECURITY MNUMBER

EMPLOYER IDENTIFICATION MNUMBER

Name as shown on tax return ▼

1. Have you established your eligibility with the New York City energy cost savings program? ❑ YES ❑ NOIF YOU HAVE CHECKED 'NO', DO NOT CONTINUE. YOU ARE NOT ELIGIBLE FOR THIS CREDIT. YOU MUST FIRST APPLY TO THE ADMINIS-TRATOR OF THE NEW YORK CITY ENERGY COSTS SAVINGS PROGRAM. (SEE INSTRUCTIONS)

2. Enter name as shown on energy cost savings program certificate

3. Date certificate issued4. Certificate number 5. Percentage of electricity bill or usage eligible from certificate %6. Annual maximum credit allowable from certificate $7a. I purchase electricity from: (check ✓ one) ❑ a landlord or ❑ a co-generator7b. Enter name and address of supplier

IF YOU PURCHASE YOUR ELECTRICITY DIRECTLY FROM A UTILITY SUPERVISED BY THE PUBLIC SERVICE COMMISSION, YOU DO NOTQUALIFY FOR THIS CREDIT. APPLY TO THE NEW YORK CITY ENERGY COST SAVINGS PROGRAM TO QUALIFY INSTEAD FOR A MONTHLYREBATE FROM YOUR UTILITY COMPANY. DO NOT COMPLETE THIS FORM.

1. Current year's credit of energy user (page 2, Schedule B or C, line 15)

2. Current year's credit of fuel service supplier (see instructions)

3. Carryover of prior year's excess credit

4. Total allowable credit (line 1 or line 2 plus line 3)

5. Credits applied to other eligible taxes (see instructions)

6. Balance (line 4 less line 5)

7. Limitation (see instructions and limitation table below)

8. Available energy credit (amount from line 6 or line 7, whichever is less)

9. Excess energy credit carryover (line 6 less line 8)

SCHEDULE A

1.

2.

3.

4.

5.

6.

7.

8.

9.

FOR DEPARTMENT USE ONLY

A ❑ B ❑ C ❑

ATTACH THIS FORM TO YOUR APPLICABLE NYC TAX RETURN

F I N A N C ENEW ● YORK

OR

NYC-ECS 1996

C a l c u l a t i o n o f A v a i l a b l e C r e d i t

For Calendar Year 19 ______or Fiscal Year beginning ________________ , 19______ and ending ________________ , 19 ______

APPLIED TO GENERAL CORPORATION TAX, UNINCORPORATED BUSINESS TAX, BANKING CORPORATION TAX AND/OR COMMERCIAL RENT OR OCCUPANCY TAX

LIMITATION TABLE

RETURN LIMITATION

NYC-202 ................................. Schedule A, line 21 less line 22a NYC-204 ................................. Schedule A, line 23 less line 24a NYC-3L ................................... Schedule A, line 11 less lines 9a, 9b, 7 and 13aNYC-3A ................................... Schedule A, line 13 less lines 11a, 11b, 9 and 14a NYC-1 ..................................... Schedule A, line 5 NYC-1A ................................... Schedule A, line 7CR-Q and CR-A ...................... line 2

AFTER YOU HAVE COMPLETED SCHEDULE A,TRANSFER THE AMOUNT ON LINE 8 AS FOLLOWS:

Form NYC-202 ...................................... transfer to line 22bForm NYC-204 ...................................... transfer to line 24bForm NYC-3L ....................................... transfer to line 12bForm NYC-3A ........................................ transfer to line 14bForm NYC-1 .......................................... transfer to line 9aForm NYC-1A ....................................... transfer to line 11aForm CR-A ........................................... transfer to line 3Form CR-Q .......................................... transfer to line 3

1.2.3.4.5.6.7.8.9.

10.11.12.13.14.15.

ENERGY COST SAVINGS PROGRAM CREDIT COMPUTATION - FOR ELIGIBLE ENERGY USERS

COMPLETE EITHER SCHEDULE B IF YOU PURCHASE YOUR ELECTRICITY FROM A LANDLORD or SCHEDULE C IF YOU PURCHASE YOUR ELECTRICITY FROM A CO-GENERATOR.IMPORTANT: YOU MUST SUBMIT ADEQUATE SUBSTANTIATION, SUCH AS PHOTOCOPIES OR INVOICES, FOR AMOUNTS ENTERED IN COLUMN B OF SCHEDULE B OR SCHEDULE C.

Form NYC-ECS - 1996 Page 2

A B C D E F

MONTH/YEAR TOTAL ELECTRIC % ELIGIBLE FOR CREDIT NET ELIGIBLE AMOUNT BENEFIT FACTOR CREDIT CALCULATIONCHARGES FROM PAGE 1, LINE 5 COLUMN B X COLUMN C (FROM TABLE 1, BELOW) COLUMN D X COLUMN E

TOTAL

Enter maximum credit allowableCURRENT YEAR'S TAX CREDIT: The credit allowed is the lower amount of the credit calculated or the maximum credit allowable. Transfer this amount to Schedule A, line 1.

SCHEDULE B

A B C D E F G

TOTAL

Enter maximum credit allowableCURRENT YEAR'S TAX CREDIT: The credit allowed is the lower amount of the credit calculated or the maximumcredit allowable. Transfer this amount to Schedule A, line 1.

SCHEDULE C

1.2.3.4.5.6.7.8.9.

10.11.12.13.14.15.

BASE ADJUSTMENTFACTOR (FROM TABLE 2)

(FACTOR INCREASES

EACH JANUARY 1)

NET ELIGIBLEKILOWATT HOURS

COLUMN B XCOLUMN C

% ELIGIBLEFOR CREDIT

FROM PAGE 1,LINE 5

KILOWATTHOURS

PURCHASED

MONTH/YEARELIGIBILITY FACTOR

(FROM TABLE 3,BELOW)

CREDITCALCULATION

COLUMN D X COLUMN EX COLUMN F

YEAR FACTOR

1ST THROUGH THE 8TH .39TH .2410TH .1811TH .1212TH AND FINAL .06

YEAR FACTOR

1ST THROUGH THE 8TH 1.009TH 0.810TH 0.611TH 0.412TH AND FINAL 0.2

CALENDAR YEAR FACTOR

1986 .03*1987 .031988 .03091989 .03181990 .03271991 .03361992 .03451993 .03541994 .03631995 .0381

Each year after 1986 the base adjustment factor increases by.0009 (.09¢). *From January 1986 through June 1986, apply afactor of $.0257 (2.57¢)

TABLE 1 TABLE 3

BENEFIT FACTOR

BASE ADJUSTMENT FACTOR

ELIGIBILITY FACTOR

Computation of Credit for Electric Energy Purchased from a Landlord

Computation of Credit for Electric Energy Purchased from a Co-Generator

TABLE 2

GENERAL INFORMATION

Under a program established by the Stateand City, certain industrial and commercialusers of electricity or natural gas who relo-cate to or expand operations in New YorkCity can qualify for reductions in their elec-tric or gas bills. (Special limitations apply tocompanies located south of 96th street inManhattan, in Long Island City and theFulton Ferry district of Brooklyn.) To quali-fy for the reduction, a company must meetvarious statutory requirements and its eligi-bility must be certified by the New YorkCity energy cost savings program. A certi-fied company that purchases electricity orgas from a utility supervised by the PublicService Commission can receive from theutility special rebates that reduce its month-ly utility bills in accordance with statutoryformulas. A certified company that purchas-es electricity or gas from a vendor of energyservices (such as a landlord or co-generatorwho is not subject to PSC supervision) mayalso receive special rebates if the vendorelects to participate in the program.

If the vendor does not provide the specialrebates, a certified company can qualify fora tax credit against its UnincorporatedBusiness Tax, General Corporation Tax,Banking Corporation Tax or CommercialRent or Occupancy Tax liability. The creditmay be claimed by taxpayers who meet therequirements for the special rebates and arecertified as eligible by the New York Cityenergy cost savings program.

Suppliers of Fuel Services. A taxpayer that isa supplier of fuel services (as defined inSection 22-601 of the Administrative Code)and that has made discounts to vendors ofenergy services may claim a credit againstits Unincorporated Business Tax, GeneralCorporation Tax, Banking Corporation Taxor Commercial Rent or Occupancy Tax lia-bility for the amount of the discounts madeduring the taxable year.

For information and applications concern-ing eligibility, contact:

Energy Cost Savings ProgramNYC Department of Business Services

110 William Street 3rd FloorNew York, NY 10038(212) 696 - 2442

SPECIFIC INSTRUCTIONS

Form NYC-ECS must be attached to andsubmitted with the taxpayer’s applicableNew York City tax return in which the cred-it is claimed:

● UNINCORPORATED BUSINESS TAXForm NYC-202 or NYC-204(partnerships)

● GENERAL CORPORATION TAXForm NYC-3L or NYC-3A

● BANKING CORPORATION TAXForm NYC-1 or NYC-1A

● COMMERCIAL RENT OROCCUPANCY TAXForm CR-Q or CR-A

ADDBACK OF CREDITTaxpayers claiming this credit must adjusttheir entire net income or taxable incomefor purposes of the UnincorporatedBusiness Tax, General Corporation Tax orBanking Corporation Tax. The amount ofcredit allowed must be added to the entirenet income or taxable income if an exclu-sion or deduction for energy charges wastaken in computing federal taxable income.

SCHEDULE ALINE 2SUPPLIERS OF FUEL SERVICESSuppliers of fuel services must attach arider listing the names and addresses of thevendors of energy services to whom dis-counts were provided and the amounts ofthe discounts provided to each vendor.Copies of the certificates furnished by thevendors to the supplier, certifying theamounts of special rebates made to eligibleenergy users, must be attached to the rider.

LINE 5CREDIT APPLIED TO OTHER TAXESA rider must be attached to this form show-ing how the total allowable credit for thetaxable year has been set off or creditedagainst the taxpayer’s liabilities for theUnincorporated Business Tax, GeneralCorporation Tax, Banking Corporation Taxor Commercial Rent or Occupancy Tax.

LINE 7LIMITATION ON CREDITThe credit can be taken only after all otherpermissible credits against the tax havebeen taken, and if the credit exceeds the taxliability for the year, the excess must be car-ried forward to future years or appliedagainst any of the other eligible taxes (referto limitation table).

SCHEDULE BComputation of Credit forElectrical Energy Purchasedfrom a Landlord

Where a taxpayer purchases electricityfrom a landlord, the credit can be no greaterthan the special rebate the taxpayer wouldhave received had it purchased the electrici-ty from a PSC-supervised utility. A purchas-er of electricity from a landlord is not eligi-ble for a credit, unless its consumption isindividually and accurately metered and theprice charged and other terms of sale arecontrolled by a contract or lease that limitsthe rates charged to those which the taxpay-er would have paid had it purchased theelectricity directly from its producer.

Enter in column B the total electricalcharges paid during each of the months ofthe taxable year, beginning with the monthimmediately following the date of certifica-tion of eligibility.

Enter in column C the percentage of electri-cal charges eligible for credit. This is thepercentage shown on the New York Cityenergy cost savings program eligibility cer-tificate.

“Eligible charges” means that portion ofcharges for electricity and all taxes payable

Form NYC-ECS - 1996 Page 3

thereon excluding those charges related to:

1) energy used in the production ofelectricity;

2) portions of the premises that havenot been deemed eligible by theadministrator of the New York Cityenergy cost savings program;

3) energy used for heating premises;

4) any special charges on utility billsrelating to energy, including but notlimited to collection charges, latepayment charges or excess distribu-tion charges;

5) energy that is resold; and

6) energy sold directly by the PowerAuthority of the State of New York toan eligible energy user.

Multiply column B by the percentageamounts entered in column C and enter theproducts in column D.

The amount allowed as a credit is calculatedby multiplying the amount of eligiblecharges (column D) by a benefit factor(refer to table 1).

Enter the appropriate benefit factor in col-umn E, multiply column D by column E andenter the products in column F. In columnF, add lines 1 through 12 and enter the totalin line 13.

If the eligibility certification limits the totalamount of credit allowable for a 12-monthperiod, enter the credit limit in line 14, col-umn F. The credit allowed is the lower ofeither the total credit amount calculated orthe maximum credit allowable for the 12-month period.

SCHEDULE CComputation of Credit forElectrical Energy Purchasedfrom a Co-Generator

Where a taxpayer purchases electricityfrom a co-generator, a formula determines

the amount of the credit.

Enter in column B the total number of kilo-watt hours of electricity purchased duringeach of the months of the taxable year,beginning with the month immediately fol-lowing the date of certification of eligibility.

Enter in column C the percentage of electri-cal usage eligible for credit. This is the per-centage shown on the New York City ener-gy cost savings program eligibility certifi-cate.

Multiply column B by the percentageamounts entered in column C and enter theproduct in column D.

The amount allowed as a credit is calculatedby multiplying the amount of kilowatt hourseligible for credit (column D) by a baseadjustment factor (refer to table 2) and bythe eligibility factor (refer to table 3).

Enter the appropriate base adjustment fac-tor in column E and the appropriate eligibili-ty factor in column F; multiply column D bycolumn E; and multiply the product ofcolumns D and E by column F and enter theproduct in column G. Add up column Glines 1 through 12 and enter the total in line13.

If the eligibility certification limits the totalamount of credit allowable for a 12-monthperiod, enter the credit limit in line 14, col-umn G. The credit allowed is the lower ofeither the credit amount calculated or themaximum credit allowable for a 12-monthperiod.

Form NYC-ECS - 1996 Page 4