Manufacturing and Research & Development Exemption

The Manufacturing and Research & Development Equipment Exemption allows manufactures and certain researchers and developers to obtain a partial exemption of sales and use tax on certain manufacturing and research and development equipment purchases and leases.

Effective July 1, 2014 through June 30, 2022, the exemption is valid for purchases totaling up to $200 million per fiscal year by manufacturing, biotech, and food processing businesses located anywhere in the state. No application is required, but qualifying purchasers must present sellers with a Partial Exemption Certificate at the time of purchase or apply for a refund with the Board of Equalization (BOE) once eligibility is ascertained.

For more information about the program or to see if your business and/or purchases will qualify, please click here.