SALT Report 2723 – The California State Board of Equalization announced that they are available to help businesses determine whether they qualify for the new partial sales and use tax exemptions for manufacturing and bio-technology equipment.
The partial exemption and other business incentives will provide up to $750 million in tax benefits for California businesses. The BOE estimates that the sales and use tax exemption of 4.1875% will result in a savings of about $41.88 for every $1,000 in purchases of qualifying equipment.
Before the exemption takes effect on July 1, 2014, the BOE is required to initiate the rule making process to provide guidance as to how the exemption will be applied. In addition, the BOE is in the process of creating an exemption certificate and instructions for this exemption.
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