SALT Report 2990 – The Wisconsin Department of Revenue has revised its fact sheet that discusses the sales and use tax exemption for purchases of property used to raise animals that will be sold for use in qualified research and manufacturing. The Fact Sheet was updated to reflect changes made by Assembly Bill 40, Laws 2013.
Additions to the Fact Sheet include that for purchases made on and after July 2, 2013, “qualified research” now includes research that is funded by a member of a combined group for another member of the combined group.
The exemption is available to those who raise animals that are sold primarily to biotechnology businesses certified by the Department, public or private institutions of higher education, or government agencies for the exclusive and direct use by these entities in qualified research or manufacturing.
The exemption applies to purchases of the following items:
- Tangible personal property, including fuel and electricity, and certain other property that is consumed or destroyed, or loses its identity, while being used exclusively and directly in qualified research, and
- Machinery and specific processing equipment, including attachments, parts, and accessories, used exclusively and directly in qualified research
The exemption provides that “used exclusively” means that the tangible personal property must be directly used in qualified research or manufacturing at least 95% of the time. However, in certain situation machinery that is used directly in manufacturing part of the time and directly in qualified research the rest of the time will qualify for the exemption.
The fact sheet provides additional guidance regarding who may claim the exemption; how to get certified by the Department; qualified research; what purchases are exempt; how to claim the exemption; prototypes; and required documentation.
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