Limited Expansion of Manufacturing Machinery and Equipment Exemption To Include Production-Related Tangible Personal Property

              This bulletin is to inform you that
the Manufacturing Machinery and
Equipment Exemption has been
expanded to include purchases
of production-related tangible
personal property purchased on or
after July 1, 2007, and on or before
June 30, 2008. Emergency regulations
currently in effect may be found on the
department’s website.
What qualifi es for the
exemption?
Purchases of production-related
tangible personal property made on
or after July 1, 2007, and on or before
June 30, 2008, are eligible for the
exemption.
How is “production-related
tangible personal property”
defi ned?
For the purpose of this exemption,
production-related tangible personal
property is defi ned as tangible personal
property that is used or consumed
in a production-related process by a
manufacturer in a manufacturing facility
in which a manufacturing process takes
place and includes, without limitation
  tangible personal property that
is purchased and incorporated
into real estate within a
manufacturing facility; and
  tangible personal property
that is used or consumed in
activities such as research and
development, preproduction
material handling, receiving,
quality control, inventory control,
storage, staging, and packaging
for shipping and transportation
purposes.
Production-related tangible personal
property does not include, without
limitation, tangible personal property
  used in or within the
manufacturing facility in sales,
purchasing, accounting, fi scal
management, marketing,
personnel recruitment or
selection, or landscaping; or
  required to be titled or registered
with a department, agency, or
unit of federal, state, or local
government.
Note: This expanded
manufacturing machinery
and equipment exemption
cannot be claimed by construction
contractors.
Limited Expansion of
Manufacturing Machinery and Equipment
Exemption to Include Production-Related
Tangible Personal Property
To: All Manufacturers
For information . . .
Visit our web site —
tax.illinois.gov
Call us —
1 800 732-8866 or
1 217 782-3336
1 800 544-5304 (TDD only)
Write us —
Illinois Department of Revenue
P.O. Box 19044
Springfi eld, IL 62794-9044
For forms . . .
Visit our web site —
tax.illinois.gov
Call our Forms Order Line —
1 800 356-6302
This bulletin is written to
inform you of recent changes;
it does not replace statutes,
rules and regulations, or court
decisions.
Illinois Department of Revenue
Informational Bulletin
Printed by authority of the State of Illinois
5200 copies -6/08 - P.O. Number 2080885
FY 2008-19
June 2008
Brian Hamer
Director of Revenue