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For Immediate Release
July 17, 2009
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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