Manufacturers and certain research and developers may qualify for a partial exemption of sales and use tax on certain manufacturing and research and development equipment purchases and leases.
ELIGIBILITY
To be eligible for this partial exemption, you must meet all three of these conditions:
Be engaged in certain types of business, also known as a “qualified person.”
Purchase “qualified property.”
Use that qualified property for the uses allowed by this law.
Requirements are extensive and complex. Please see the website for all of the details (link below).
PROCESS
If a buyer meets the eligibility requirements, form BOE-230-M (link below) can be filled out and submitted to the seller of manufacturing or research and development equipment. The equipment can then be sold on a partially tax exempt basis.