Department of Taxation and Finance
                   New York State and Local Sales and Use Tax                                                         ST-120.1
                                                                                                                                (9/21)
                   Contractor Exempt Purchase Certificate
                To be used only by contractors who are registered with the Tax Department for sales tax purposes.

                To vendors:
                You must collect tax on any sale of taxable property or services unless the contractor gives you a properly 
                completed exempt purchase certificate not later than 90 days after the property is sold or service is 
                rendered. In addition, you must keep the certificate for at least three years, as explained in the instructions.

This form cannot be used to purchase motor fuel or diesel motor fuel exempt from tax.
To contractors and vendors: Read the instructions on pages 3 and 4 carefully before completing or accepting this certificate.
 Name of seller                                                Name of purchasing contractor

 Street address                                                Street address

 City                              State             ZIP code  City                                State                        ZIP code

  1.  I have been issued a New York State Certificate of Authority,                                                             , to collect
                                                                       (enter your sales tax identification number)
   New York State and local sales and use tax, and that certificate has not expired or been suspended or revoked.
  2.  The tangible personal property or service being purchased will be used on the following project:

      located at

      for and with

      pursuant to prime contract dated                                 .

  3.  These purchases are exempt from sales and use tax because:
      (Mark an Xin the appropriate box; for further explanation, see items A through Q      in the instructions on pages 3 and 4.)
       A. The tangible personal property will be used                  C. The tangible personal property will be used:
                in the above project to create a building                    •  in an Internet data center when the property 
                or structure or to improve real property or                    is to be incorporated as part of a capital 
                to maintain, service, or repair a building,                    improvement; or
                structure, or real property, owned by 
                an organization exempt under Tax Law                         •  directly and predominantly in connection 
                section 1116(a). (For example,New York                         with telecommunications services for sale or 
                State government entities, United States                       Internet access services for sale; or
                governmental entities, United Nations and                    • directly and predominantly by a television or 
                any international organization of which the                    radio broadcaster in connection with producing 
                United States is a member, certain posts or                    or transmitting live or recorded programs.
                organizations of past or present members 
                                                                       D. The tangible personal property, including 
                of the armed forces, and certain nonprofit 
                                                                             production machinery and equipment, is for 
                organizations and Indian nations or tribes 
                                                                             installation in the above project and will remain 
                that have received New York State sales tax 
                                                                             tangible personal property after installation.
                exempt organization status.) The tangible 
                personal property will become an integral              E.  The tangible personal property will become 
                component part of such building, structure, or               an integral component part of a building, 
                real property.                                               structure, or real property, used predominantly 
                                                                             (more than 50%) either in the production 
       B. The tangible personal property is production 
                                                                             phase of farming or in a commercial horse 
                machinery and equipment, and it will be 
                                                                             boarding operation, or in both.
                incorporated into real property.

       Note: This certificate is not valid unless the purchaser completes the certification on page 2.

Page 2 of 4  ST-120.1 (9/21)

           F.  The machinery or equipment will be used                       K. The tangible personal property will be used in 
              directly and predominantly to control, prevent,                                 a project for an exempt Housing Development 
              or abate pollution or contaminants from                                         Fund Corporation (HDFC). 
              manufacturing or industrial facilities.
                                                                             L.  The services are for the project described 
           G. The tangible personal property is residential or                                in line 2 on page 1 and will be resold. (This 
              commercial solar energy systems equipment.                                      includes trash removal services in connection 
              (Note: Item G purchases are exempt from the                                     with repair services to real property.)
              4% New York State tax rate and from the ⅜% 
                                                                             
              MCTD rate. Item G purchases may be exempt                      M. The services are to install, maintain, service, 
                                                                                              or repair tangible personal property used in 
              from local taxes. See instructions.)
                                                                                              an Internet data center, for telecommunication 
           H. The tangible personal property will be used                                     or Internet access services, or for radio 
              directly and exclusively in adding to, altering,                                or television broadcast production or 
              or improving a qualifying tenant’s leased                                       transmission.
              premises for use as commercial office 
                                                                             
              space in Eligible Area A or B as described                     N. The services are to install, maintain, service, 
                                                                                              or repair tangible personal property that will be 
              in TSB‑M‑05(12)S, Sales and Use Tax 
                                                                                              used predominantly either in farm production 
              Exemptions on Certain Purchases of Tangible 
                                                                                              or in a commercial horse boarding operation, 
              Personal Property and Services for Leased 
                                                                                              or in both provided such tangible personal 
              Commercial Office Space in Lower Manhattan, 
                                                                                              property will become an integral component 
              provided that the tangible personal property 
                                                                                              part of such structure, building, or real 
              becomes an integral component part of the 
                                                                                              property.
              building in which the leased premises are 
              located, and where such property is purchased                  O. The services are to install residential or 
              during the first year of the qualifying tenant’s                                commercial solar energy systems equipment.
              lease and delivered to the leased premises 
              no later than 90 days after the end of that first              P.  The services are to install tangible personal 
              year.                                                                           property purchased during the first year of 
                                                                                              the qualifying tenant’s lease and delivered 
           I.The tangible personal property is machinery                                      to the leased premises no later than 90 days 
              or equipment used directly and predominantly                                    after the end of that first year, that will be 
              in loading, unloading, and handling cargo at a                                  used directly and exclusively in adding to, 
              qualified marine terminal facility in New York                                  altering, or improving a qualifying tenant’s 
              City. This exemption does not apply to the                                      leased premises for use as commercial office 
              local tax in New York City.                                                     space in Eligible Area A or B as described in 
                                                                                              TSB‑M‑05(12)S.
           J.  The tangible personal property is commercial 
              fuel cell systems equipment. (Note: Item J                     Q. The services are to install or maintain 
              purchases are exempt from the 4% New York                                       commercial fuel cell systems equipment.
              State tax rate and from the ⅜% MCTD rate. 
              Item J purchases may be exempt from local 
              taxes. See instructions.)

Caution: Contractors may not use this certificate to purchase services tax exempt unless the services are resold to 
customers in connection with a project. Construction equipment, tools, and supplies purchased or rented for use in 
completing a project but that do not become part of the finished project may not be purchased exempt from tax through 
the use of this certificate.

Certification: I certify that the above statements are true, complete, and correct, and that no material information has been omitted. I 
make these statements and issue this exemption certificate with the knowledge that this document provides evidence that state and local 
sales or use taxes do not apply to a transaction or transactions for which I tendered this document and that willfully issuing this document 
with the intent to evade any such tax may constitute a felony or other crime under New York State Law, punishable by a substantial fine 
and a possible jail sentence. I understand that this document is required to be filed with, and delivered to, the vendor as agent for the Tax 
Department for the purposes of Tax Law section 1838 and is deemed a document required to be filed with the Tax Department for the 
purpose of prosecution of offenses. I also understand that the Tax Department is authorized to investigate the validity of tax exclusions or 
exemptions claimed and the accuracy of any information entered on this document. 

 Type or print name and title of owner, partner, or authorized person of purchasing contractor

 Signature of owner, partner, or authorized person of purchasing contractor                                 Date prepared

                            Substantial penalties will result from misuse of this certificate.

                                                                                                      ST-120.1 (9/21) Page 3 of 4 
                                                           Instructions
Only a contractor who has a valid Certificate of Authority            predominantly to transmit live or recorded programs. 
issued by the Tax Department may use this exempt purchase             (Examples of exempt machinery and equipment include 
certificate. The contractor must present a properly completed         amplifiers, transmitters, and antennas.)
certificate to the vendor to purchase tangible personal property, 
or to a subcontractor to purchase services tax exempt. This        D.  Installed or placed in the project in such a way that it 
certificate is not valid unless all entries have been completed.      remains tangible personal property after installation. The 
                                                                      contractor must collect tax from its customer when selling 
The contractor may use this certificate to claim an exemption         such tangible personal property or related services to the 
from sales or use tax on tangible personal property or services       customer, unless the customer gives the contractor an 
that will be used in the manner specified in items A through Q        appropriate and properly completed exemption certificate.
below. The contractor may not use this certificate to purchase 
tangible personal property or services tax exempt on the basis     E.  Going to become an integral component part of a structure, 
that Form ST-124, Certificate of Capital Improvement, has been        building, or real property used predominantly (more than 
furnished by the project owner to the contractor.                     50%) either in the production phase of farming or in a 
                                                                      commercial horse boarding operation, or in both, for which 
The contractor must use a separate Form ST‑120.1, Contractor          the customer has provided the contractor a completed 
Exempt Purchase Certificate, for each project.                        Form ST-125, Farmer’s and Commercial Horse Boarding 
                                                                      Operator’s Exemption Certificate.
Purchase orders showing an exemption from the sales or use 
tax based on this certificate must contain the address of the      F. Machinery or equipment used directly and predominantly 
project where the property will be used, as well as the name and      to control, prevent, or abate pollution or contaminants from 
address of the project owners (see page 1 of this form). Invoices     manufacturing or industrial facilities.
and sales or delivery slips must also contain this information 
(name and address of the project for which the exempt              G. Residential or commercial solar energy systems equipment. 
purchases will be used or where the exempt services will be           Residential solar energy systems equipment means an 
rendered, as shown on page 1 of this form).                           arrangement or combination of components installed in a 
                                                                      residence that utilizes solar radiation to produce energy 
                                                                      designed to provide heating, cooling, hot water, and/or 
Use of the certificate                                                electricity. Commercial solar energy systems equipment 
Note: Unless otherwise stated, the customer must furnish the          means an arrangement or combination of components 
contractor a properly completed Form ST-121, Exempt Use               installed upon nonresidential premises that utilize solar 
Certificate.                                                          radiation to produce energy designed to provide heating, 
                                                                      cooling, hot water, or electricity. The exemption is allowed 
This certificate may be used by a contractor to claim exemption       on the 4% New York State tax rate and where applicable, 
from tax only on purchases of tangible personal property              the ⅜% MCTD rate. The exemption does not apply to local 
that is:                                                              taxes unless the locality specifically enacts the exemption. 
A.   Incorporated into real property under the terms of a contract    The customer must furnish the contractor a completed 
   entered into with an exempt organization that has furnished        Form ST-121 by completing the box marked Other (U.). 
   the contractor with a copy of Form ST‑119.1, Exempt                For the definition of residence and for an exception relating 
   Organization Exempt Purchase Certificate, governmental             to recreational equipment used for storage, as well as for 
   purchase order, or voucher.                                        other pertinent information, see TSB‑M‑05(11)S, Sales and 
                                                                      Use Tax Exemption for Residential Solar Energy Systems 
B.  Production machinery or equipment that will be incorporated       Equipment. For the definition of nonresidential premises, 
   into real property.                                                as well as other pertinent information, see TSB‑M‑12(14)S, 
C. Used in one of the following situations:                           Sales and Use Tax Exemption for the Sales and Installation 
   •  Machinery, equipment, and other tangible personal               of Commercial Solar Energy Systems Equipment.
     property related to providing website services for sale to    H. Delivered and used directly and exclusively in adding to, 
     be installed in an Internet data center when the property        altering, or improving a qualifying tenant’s leased premises 
     is to be incorporated as part of a capital improvement.          for use as commercial office space in Eligible Area A or 
     The customer must furnish the contractor a completed             B as described in TSB‑M‑05(12)S, Sales and Use Tax 
     Form ST-121.5, Exempt Use Certificate for Operators of           Exemptions on Certain Purchases of Tangible Personal 
     Internet Data Centers (Web Hosting).                             Property and Services for Leased Commercial Office Space 
   •  Used directly and predominantly in the receiving,               in Lower Manhattan, provided that the tangible personal 
     initiating, amplifying, processing, transmitting,                property becomes an integral component part of the building 
     re-transmitting, switching, or monitoring of switching of        in which the leased premises are located, and where such 
     telecommunications services for sale, or Internet access         property is purchased within the first year of the qualifying 
     service for sale.                                                tenant’s lease.
   •  Machinery, equipment, and other tangible personal            I. Machinery and equipment used at qualified marine terminal 
     property (including parts, tools, and supplies) used by a        facilities located in New York City. The machinery and 
     television or radio broadcaster directly and predominantly       equipment must be used directly and predominantly in 
     in the production and post-production of live or recorded        loading, unloading, and handling cargo at marine terminal 
     programs used by a broadcaster predominantly for                 facilities located in New York City that handled more than 
     broadcasting by the broadcaster either over -the- air or         350,000 twenty foot equivalent units (TEUs) in 2003. For 
     for transmission through a cable television or direct            purposes of this exemption, the term TEU means a unit of 
     broadcast satellite system. (Examples of exempt                  volume equivalent to the volume of a twenty-foot container. 
     machinery and equipment include cameras, lights, sets,           This exemption does not apply to the local tax in New York 
     costumes, and sound equipment.) This exemption also              City.
     includes machinery, equipment, and other tangible 
     personal property used by a broadcaster directly and 

Page 4 of 4  ST-120.1 (9/21)
J.  Commercial fuel cell systems equipment. Commercial              •  criminal felony prosecution, punishable by a substantial fine 
   fuel cell systems equipment means an electric generating          and a possible jail sentence; and
   arrangement or combination of components that is                 •  revocation of your Certificate of Authority, if you are 
   installed upon nonresidential premises and utilizes solid         required to be registered as a vendor. See TSB‑M‑09(17)S, 
   oxide, molten carbonate, a proton exchange membrane,              Amendments that Encourage Compliance with the Tax Law 
   phosphoric acid, or a linear generator to provide heating,        and Enhance the Tax Department’s Enforcement Ability, for 
   cooling, hot water, or electricity. The exemption is allowed      more information.
   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.     To the seller 
   The customer must furnish the contractor a completed             When making purchases that qualify for exemption from sales 
   Form ST-121 by completing the box marked Other (U.). See         and use tax, the contractor must provide you with this exemption 
   TSB‑M‑16(3)S, Sales and Use Tax Exemptions Related               certificate with all entries completed to establish the right to the 
   to Commercial Fuel Cell Systems Equipment, for more              exemption.
   information.
                                                                    As a New York State registered vendor, you may accept an 
K.  For use in a project for an exempt HDFC that has furnished      exemption certificate in lieu of collecting tax and be protected 
   the contractor with a copy of the exemption letter issued to     from liability for the tax if the certificate is valid. The certificate 
   them by the Tax Department.                                      will be considered valid if it is:
This certificate may also be used by a contractor to claim          •  accepted in good faith; 
exemption from tax on the following services:                       •  in your possession within 90 days of the transaction; and
L. Installing tangible personal property, including production      •  properly completed (all required entries were made).
   machinery and equipment, that does not become a part of 
   the real property upon installation.                             An exemption certificate is accepted in good faith when you 
                                                                    have no knowledge that the exemption certificate is false or is 
   Repairing real property, when the services are for the           fraudulently given, and you exercise reasonable ordinary due 
   project named on page 1 of this form and will be resold.         care. If you do not receive a properly completed certificate within 
                                                                    90 days after the delivery of the property or service, you will 
   Trash removal services rendered in connection with repair        share with the purchaser the burden of proving the sale was 
   services to real property, if the trash removal services will be exempt.
   resold.
                                                                    Failure to collect sales or use tax, as a result of accepting 
   Note: Purchases of services for resale can occur between         an improperly completed exemption certificate or receiving 
   prime contractors and subcontractors or between two              the certificate more than 90 days after the sale, will make 
   subcontractors. The retail seller of the services, generally     you personally liable for the tax plus any penalty and interest 
   the prime contractor, must charge and collect tax on the         charges due.
   contract price, unless the project owner gives the retail 
   seller of the service a properly completed exemption             You must maintain a method of associating an invoice (or 
   certificate.                                                     other source document) for an exempt sale with the exemption 
                                                                    certificate you have on file from the purchaser. You must also 
M. Installing, maintaining, servicing, or repairing tangible        keep this certificate at least three years after the due date of 
   personal property used for Web hosting, telecommunication        your sales tax return to which it relates, or the date the return 
   or Internet access services, or by a broadcaster (described      was filed, if later.
   in item C on page 3).
N. Installing, maintaining, servicing, or repairing tangible 
   personal property that will be used predominantly either          Need help?
   in farm production or in a commercial horse boarding 
   operation, or in both (described in item E on page 3).                       Visit our website at www.tax.ny.gov
O. Installing qualifying residential or commercial solar energy                 •  get information and manage your taxes online
   systems equipment (described in item G on page 3).                           •  check for new online services and features
P. Installing tangible personal property delivered to and 
   used directly and exclusively in adding to, altering, or          Telephone assistance:                        518‑485‑9863
   improving a qualifying tenant’s leased premises for use as        To order forms and publications:             518‑457‑5431
   commercial office space in Eligible Area A or B as described      Text Telephone (TTY) or TDD                  Dial 7‑1‑1 for the  
   in TSB‑M‑05(12)S, provided that the tangible personal               equipment users                New York Relay Service
   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;