Exemption Alert: Manufacturing Machinery and Equipment
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: