The California Manufacturing Partial Sales and Use Tax Exemption, which went into effect July 1, 2014, allows certain manufacturers and biotech companies to exempt a portion of sales and use tax on purchases of qualified equipment used in manufacturing and R&D (research and development). While it’s been around for a few years, it’s still a viable benefit for companies purchasing equipment.
How To Take Advantage Of The California Manufacturing Partial Sales And Use Tax Exemption
To qualify, you need to meet the following criteria:
- Be engaged in certain types of business primarily engaged (50 percent or more of the time) in those lines of business described in the NAICS Codes for:
- Manufacturing (311100-339999)
- R&D in biotechnology (541711)
- R&D in the physical, engineering and life sciences (541712)
- Generation and production, or storage and distribution of electric power (22111-221118, 221122)