Today is Manufacturing Day 2017. The first Friday of October of each year is set aside to celebrate manufacturers and to bring awareness to modern manufacturing.
Manufacturing drives our economy. Healthy, profitable manufacturers are needed in the United States to drive a thriving economy. Keeping costs down is one piece of a jigsaw puzzle that contributes to the bottom line success of a manufacturer.
Many, if not most, states in the U.S. offer tax incentives in the form of exemptions, credits, abatements, etc. to attract and sustain manufacturing. As part of this push, states offer various sales and use tax exemptions to manufacturers. The exemptions come in all forms like exempting purchases of machinery and equipment used directly in production, exempting certain quality control items, exempting supplies necessary and essential to the manufacturing process, and some states even exempt simple hand tools.
The specifics of exemptions available to manufacturers vary from state to state. Know your state sales tax laws so that you can take advantage of the exemptions in the states in which you have manufacturing facilities. Pay your share of taxes, but keep what is rightfully yours so that you can reinvest in your process, continue to thrive, and continue making America the wonderful place that it is.
Happy Manufacturing Day 2017.