Who qualifies for the sales and use tax deferral?
What are the reporting/documentation requirements? • Manufacturers must invest in facility construction or expansion or acquire machinery and equipment; however, a new building is not required. Used machinery qualifies, so long as it is new to the business or the state and is integral and necessary to the business operations. • The cost of expanding or modernizing an existing facility must increase floor space or production capacity. • All investment project costs, including labor and services for planning, installation and construction, are used to determine what is eligible for deferral. If the facility is used partly for manufacturing and partly for some other purpose (such as a tasting room), the tax deferral is determined by apportioning the construction costs. • You must complete and submit an Annual Tax Incentive Survey (Annual Survey for Tax Incentive Programs, Preferential Rates/Credits/Exemptions/Deferrals) to the Department. • The Annual Survey must be received by March 31 o
