Section 4-e - Credit relating to certain sales and compensating use taxes(1) in addition to any other credit allowed by this section, a taxpayer shall be allowed a credit against the tax imposed by this part to be credited or refunded in the manner hereinafter provided in this section. The amount of such credit shall be equal to one-half the amount of sales and compensating use taxes imposed by section eleven hundred seven of the tax law during the taxpayer's taxable year which became legally due on or after and was paid on or after July first, nineteen hundred eighty-one, less one-half of any credits or refunds of such taxes, with respect to the purchase or use by the taxpayer of (i) parts with a useful life of one year or less, tools and supplies 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 or for use directly and predominantly in or on telephone central office equipment or station apparatus or comparable telegraph equipment where such equipment or apparatus is used directly and predominantly in receiving at destination or initiating and switching telephone or telegraph communication, and (ii) the service of installing, repairing, maintaining or servicing the tangible personal property described in section four-b of this part, including the parts with a useful life of one year or less, tools and supplies described in clause (i) of this subdivision. The foregoing credit shall be reduced by the amount of any credit for such sales and compensating use taxes allowed or allowable against the taxes imposed by any local law of the city imposing a tax on utilities and vendors of utility services, for any periods embraced within the taxable year of the taxpayer under this part.(2) The credit allowed under this section for any taxable year shall be deemed to be an overpayment of tax by the taxpayer to be credited or refunded without interest in accordance with the provisions of section seventy-seven of this title.(3) Where the taxpayer receives a refund or credit of any tax imposed under section eleven hundred seven of the tax law for which the taxpayer had claimed a credit under the provisions of this section in a prior taxable year, the amount of such tax refund or credit shall be added to the tax imposed by section three of this part, and such amount shall be subtracted in computing entire net income for the taxable year.N.Y. General City Model Law § 4-e