Certainly! In both Michigan and Indiana, manufacturers have the advantage of being able to claim exemption from paying sales tax on their utilities. This valuable exemption can significantly impact the bottom line for businesses operating in the manufacturing sector. By excluding sales tax on utilities, manufacturers can effectively lower their operational costs, making it easier to invest in new equipment, hire skilled workers, and explore innovative technologies.
The criteria for claiming this exemption is straightforward: the majority of the utilities consumption must directly support the manufacturing process. This means that utilities like electricity, water, natural gas, and other resources used in the production of goods or materials are eligible for the exemption. Please consult with your firm’s CPA firm or tax advisor for direction in this endeavor. It is important for manufacturers to keep detailed records and documentation to ensure compliance with the requirements of the exemption. In Indiana, you will want to use Form ST-200, while Michigan requires Form 3372.
This policy is designed to foster a supportive business environment for manufacturers in both states. By offering this tax incentive, Michigan and Indiana aim to attract and retain manufacturing businesses, promoting economic growth and job creation within their respective regions. The exemption serves as a valuable tool to reduce costs for manufacturers, enabling them to maintain competitiveness in the market and invest in their long-term success.
Overall, the exemption from sales tax on utilities for manufacturers in Michigan and Indiana is a beneficial measure that supports the growth and development of the manufacturing sector. It provides a financial advantage to businesses, encourages innovation, and contributes to the overall economic prosperity of both states.
DePoy Energy 