For Immediate Release
July 17, 2009

Pennsylvania – Manufacturing Exemption Takes to the Wind

Pennsylvania – Manufacturing Exemption Takes to the Wind

Pennsylvania – Manufacturing Exemption Takes to the Wind

The Pennsylvania Department of Revenue has determined that the generation of electricity through the use of wind turbines, generators, and transformers qualifies as manufacturing for sales and use tax purposes.

The Department based its determination on whether or not a power producer’s activities qualified as manufacturing under tax law, and the treatment of the power producer’s purchase of machinery, equipment, and supplies under the integrated plant theory.

Based upon the facts presented the Department concluded that the Taxpayer’s activities qualified as manufacturing for Pennsylvania sales and use tax purposes, and therefore, its purchases of machinery, equipment, parts, and foundations used directly and predominantly in the production or generation of electricity may be purchased exempt from Pennsylvania sales and use tax.

If you would like additional information on this topic or have any questions, please contact the taxdesk@thesaltgroup.com

 

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