Regulation 1525.4 allows businesses in manufacturing to purchase manufacturing equipment at a reduced sales and use tax rate for purchases occurring on or after 7/01/14. The partial exemption is 4.185% for the period of 7/01/14 to 12/31/16 and then will adjust to 3.9375% on 1/01/17 through the end of the program. The exemption will be taken at the time of purchase, with the exclusion recorded on your sales & use tax return. When making a qualified purchase, you provide the seller with an exemption certificate to obtain the reduced tax rate.
To receive the exemption, you must complete an exemption certificate and give it to the seller. >>CLICK HERE to download certificate