The Department of Revenue has adopted a regulation pertaining to sales tax refund incentives for purchases of energy efficient machinery and equipment used in manufacturing plants for energy efficient projects.
Energy efficient projects are defined as “projects whereby manufacturers purchase new or replacement machinery or equipment that reduces the consumption of energy or energy producing fuels used in the plant’s manufacturing process by at least 15% while maintaining or increasing production.”
Efficiency requirements are as follows. To calculate the 15% reduction of energy or energy producing fuels, the decrease in energy consumption must be based on the total energy consumed within all combined manufacturing at one plant facility.
Applicants for the refund incentives must file a completed Application for Preapproval for Energy Efficient Machinery or Equipment with the Department of Revenue, along with energy and energy producing fuel consumption documentation, and any other documentation as required by the Department of Revenue, such as purchase invoices.
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