Is the machinery and equipment capitalized for either federal tax purposes or accounting purposes?
– If the answer is “yes,” it qualifies for the exemption. – If the answer is “no,” (b) Is the machinery and equipment warranted by the manufacturer to last at least one year? – If the answer is “yes,” it qualifies for the exemption. – If the answer is “no,” (c) Is the machinery and equipment normally replaced at intervals of one year or more, as established by industry or business practice? (This is commonly based on the actual experience of the person claiming the exemption.) – If the answer is “yes,” it qualifies for the exemption. – If the answer is “no,” (d) Is the machinery and equipment expected at the time of purchase to last at least one year, as established by industry or business practice? (This is commonly based on the actual experience of the person claiming the exemption.) – If the answer is “yes,” it qualifies for the exemption. – If the answer is “no,” it does not qualify for the exemption. (8) The “used directly” criteria. Items that are not used directly in a qualifyin
