Does the manufacturing machinery and equipment exemption extend to machinery or equipment used both in manufacturing and for other purposes?
A. If the manufacturing use of machinery or equipment is more than 50% of its total use, the machinery or equipment qualifies for the exemption. In calculating the percentage of use, a taxpayer may divide the number of operating hours the machinery or equipment is used in manufacturing by its total operating hours. Other calculation methods may also be used provided they result in a reasonable estimate of the actual manufacturing use.
Related Questions
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