NY A00092

Allows school bus operators to claim a refund or credit for sales and use taxes paid on school buses, parts, equipment, lubricants, maintenance services, and fuel used for transporting students to school or school-related events under an education law contract.

Requires that at least 70 percent of the school bus's use be for student transportation and that the bus meet national school bus standards (National School Bus Chrome paint and proper labeling).

Provides a phased-in credit percentage: 25% from September 1, 2014 through August 31, 2015; 50% from September 1, 2015 through August 31, 2016; 75% from September 1, 2016 through August 31, 2017; and 100% beginning September 1, 2017.

Requires operators to maintain records demonstrating compliance and file applications for the credit or refund within timeframes specified by tax law, with applications permitted no more frequently than quarterly.

Takes effect on September 1, 2014 and authorizes the Commissioner of Taxation and Finance to adopt necessary regulations and forms for implementation.