What kind of manufacturing machinery and equipment is considered exempt?
The exempt production process starts with the conveyance of raw material to the production line. Equipment used to move the raw material is exempt. The production process ends with conveyance of the finished product to storage. Exempt M and E includes the following equipment: repair parts and replacement machines; machine foundations and power wiring to M and E; motors,compressors and computers that power or operate M and E; and equipment used in quality control of the manufactured product. M and E used for both taxable and exempt functions must have 95% use in the exempt function to qualify.
