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Exemption Alert: Manufacturing Machinery and Equipment

Exemption Alert: Manufacturing Machinery and Equipment

Published: 08/07/2012

» Manufacturing News

What is the Exemption?

Machinery and Equipment purchased by new and expanding businesses that use such equipment at a fixed location to manufacture, process, compound, or produce tangible personal property for sale, or for exclusive use in spaceport activities, is sales and use tax exempt.


Do I qualify?

In order to qualify for the new business exemption, the machinery and equipment must have been purchased, or a purchase agreement made, prior to the date the business first begins to produce a product for inventory or immediate sale. Expanding manufacturers must increase productive output by not less than ten percent to be able to claim the exemption.


How do I receive the credit?

Submit an Application for Temporary Tax exemption Permit (Form DR-1214). Upon approval by the Department of Revenue, a Temporary Tax Exemption Permit will be issued to the qualifying business or instructions will be given on how to obtain a refund of previously paid taxes.


Download the form at: