State & Local Tax Blog

IL Passes Exemption for Manufacturers

CCH reported this morning that IL has passed a budget bill that contained a temporary exemption for certain equipment. Here’s the report from CCH:
Production-related property

“For purposes of the manufacturing and assembly exemption from retailers’ occupation (sales) and use tax, the term “production-related tangible personal property” means all tangible personal property that is used or consumed by the purchaser in a manufacturing facility in which a manufacturing process takes place.

“The term includes tangible personal property that is purchased for incorporation into real estate within a manufacturing facility and tangible personal property that is used or consumed in activities such as research and development, preproduction material handling, receiving, quality control, inventory control, storage, staging, and packaging for shipping and transportation purposes.

“Production-related tangible personal property” does not include (1) tangible personal property that is used, within or without a manufacturing facility, in sales, purchasing, accounting, fiscal management, marketing, personnel recruitment or selection, or landscaping, or (2) tangible personal property that is required to be titled or registered with a department, agency, or unit of federal, state, or local government.
“The manufacturing and assembling machinery and equipment exemption includes production-related tangible personal property that is purchased on or after July 1, 2007, and on or before June 30, 2008.”

Leave a Reply

Your email address will not be published.

What You Should Do Next

Have a state or local tax issue or question? Need help? Want peace of mind? We can help! Sign up for a free "What's Next" call and let us get to work for you.