Does machinery and equipment used by a manufacturer to generate electricity that is consumed for its manufacturing purposes qualify for the manufacturing machinery and equipment exemption?
A. Yes, provided the electricity is exclusively used by the manufacturer for its manufacturing purposes. Exclusively shall mean 90 percent or more of the electricity is used by the manufacturer for its own manufacturing purposes. If more than 10 percent of the electricity is sold by the manufacturer or used for purposes other than its own manufacturing, such machinery and equipment is not qualified manufacturing machinery and equipment and is not exempt from tax.
Related Questions
- Does machinery and equipment used by a manufacturer to generate electricity that is consumed for its manufacturing purposes qualify for the manufacturing machinery and equipment exemption?
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