Sales & Use Tax Exemptions
Sales tax is paid on most tangible goods and services, and use tax is collected on the consumption, use, or storage of goods when sales tax is not paid. MSC helps businesses identify overpayments and ensure compliance, and we offer a complimentary consultation to get started.
Items That May Qualify For Tax Exemption Can Include:
- Ingredients & Component Parts
- Services
- Pollution Control
- Gases
- Safety Equipment/PPE
Sales Tax Exemptions
Purchased or leased machinery, equipment, and replacement parts that are used for manufacturing or fabrication may also qualify for a tax exemption. These components must have a useful life over six months are exempt from sales and use tax.
Manufacturers that fall within any of these categories have an opportunity to claim exemptions, not only in the current year but in prior years as well.
Energy & Utility Tax Exemptions
Manufacturers may also qualify for exemptions on electricity, natural gas, fuel, and other utilities used to power exempt equipment and support the manufacturing process, such as melting or dehumidification.
State-Specific Manufacturing Exemptions
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.
About MSC
Since 1996, MSC has helped guide their clients through the complex and constantly changing tax landscape. Our team consistently delivers creative and proven solutions for real estate and specialty tax credits and incentives. Our approach is grounded in a commitment to the highest standards of integrity and professionalism. With more than 300 years of collective experience in taxation, exam controversy, engineering, and construction, we provide accurate, transparent, and defensible tax strategies nationwide.
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Contact us today to find out how we can capture extraordinary tax benefits for all types of entities.