California MFG Tax Exemptions
Did you know that certain manufacturing companies in California may have tax exemption rules? Here are some basic facts that we’d love to share in this blog:
Industry: Look into exemptions if your company is involved more than 50 percent of the time in the areas of manufacturing, biotech research, biotech development, plus research or development for physical, engineering, and life sciences. Also, any company that uses most of their time and resources for manufacturing and fabricating, which is applicable to this industry, could be viewed as a “qualified use.”
Money: Is more than 50 percent of your profit in a fiscal year allocated to salaries for employees, production costs, or based on the amount of full-time equivalency workers in your company?
Equipment: Your machines, equipment, component parts (IE: moving parts, belts, operating structures, shafts, etc.) may be considered “qualified tangible personal property.”
Here’s the part that we like – Your computers, as well as software you use to operate, regulate, maintain, and control your machines, and data processing equipment, may also be considered “qualified tangible personal property.” Buying our hardware and software solutions to make your shop floor more efficient may be part of this exemption!
We recommend you speak to a tax advice expert further if you want to take advantage of these exemptions by contacting the CA Board of Equalization. More info can be found via a list of regulations and this special notice.
Otherwise, give us a call at 877-611-5825 or fill out our contact form to take advantage of our solutions!