Certain exemptions for purchasing manufacturing equipment are amended under the “Integrated Plant” theory for Georgia sales and use tax.
The legislation exempts the purchase of machinery, equipment, and related components necessary and integral to the manufacturing of tangible personal property, when they are purchased to replace or upgrade machinery or equipment in a Georgia manufacturing plant. This exemption also includes purchases of such equipment and components that are used for the first time in a new manufacturing plant in Georgia.
Previously, the law exempted machinery or machinery components used directly in the manufacture of tangible personal property, when purchased to replace or upgrade machinery in a manufacturing plant, and machinery used directly in the manufacturing of tangible personal property when it was used for the first time in a new manufacturing plant in the state.
This legislation also exempts the sale or use of repair or replacement parts, machinery clothing, replacement machinery clothing, molds, replacement molds, dies or replacement dies, waxes, and tooling or replacement tooling for machinery that is necessary and integral to the manufacture of tangible personal property.
Previously, the law did not exempt waxes and the exempt items had to be used directly in the manufacture of tangible personal property. The legislation also removes the $150,000 cap on the amount of the sales price that was eligible for the exemption. These exemptions do not affect any tax, penalty, or interest liabilities or refund eligibility for any period prior to January 1, 2009.
The legislation also includes amendments for pollution control and material handling equipment.
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