Sales & Use Tax Exemptions

Sales tax is paid on most goods and services and use tax is collected on the consumption, use, or storage of goods when sales tax is not paid. There are a few exceptions, purchased or leased machinery, equipment, replacement parts that are used for manufacturing or fabrication and that have a useful life over six months are exempt from sales and use tax. Manufacturers that fall within this category have an opportunity to claim exemptions not only in the current year but in prior years as well.

Energy & Utility Tax Exemptions

In addition to the sales and use tax exemption for manufacturers, there is an exemption that can be used on taxes paid on electricity, fuel, and other utilities that are necessary and required in the manufacturing process. These required processes can range from electricity used to power manufacturing equipment and machines to the fuel used during melting and dehumidification processes.

Each state has their own set of rules when it comes to sales, use, and utility tax exemptions. Our team is here to help you navigate the regulations in your state and validate your exemption status. Click below to schedule an appointment to speak with an advisor. There is no cost and no obligation.