Applied to qualified equipment purchases

Beginning July 1, 2014, manufacturers and certain research and developers may obtain a partial exemption of sales and use tax on certain manufacturing and R&D equipment purchases.

Qualified industries generally include those primarily engaged in the business of all forms of manufacturing, or R&D in biotechnology or the physical, engineering, and life sciences.

Qualified equipment includes but not limited to:

  • Machinery and equipment, including component parts, moving parts and operating structures
  • Equipment or devices used to operate, control, regulate or maintain the machinery, including computers and software, together with all repair and replacement parts with a useful life of one or more years
  • Tangible personal property used in pollution control
  • Special purpose buildings and foundations used as an integral part of the manufacturing, processing, refining, fabricating, or recycling process, or that constitute a research or storage facility used during those processes.

19.6% rate reduction

NET EFFECT

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