Illinois Reinstates Manufacturers Purchase Credit
Illinois legislators, working alongside the Illinois Manufacturers’ Association (IMA), have reinstated the Manufacturers Purchase Credit. This new tax incentive that takes effect on July 1, 2019, will save manufacturing companies tens of millions of dollars. Companies will no longer pay sales tax on consumables (production related tangible personal property) such as coolants, fuel, oils, lubricants, solvents, adhesives, hand tools, protective apparel, and fire and safety equipment.
The IRS has issued a an informational bulletin to help manufacturers understand what is exactly exempted. This legislation expands upon existing exemptions as part of Illinois effort to enhance the manufacturing sector throughout the state.
