California Extends Partial Manufacturing Exemption

California has extended the end date for the state’s partial sales and use tax exemption for manufacturing from July 1, 2022 to July 1, 2030. The exemption is also expanded to apply to the gross receipts from the sale of, and the storage, use, or other consumption in California of qualified tangible personal property purchased for use by:

• a contractor purchasing that property for use in the performance of a construction contract for a qualified person that will use the property as an integral part of the generation or production, or storage and distribution, of electric power; and
• a qualified person to be used primarily in the generation or production, or storage and distribution, of electric power.

The sunset date of the exemption is extended from January 1, 2023 to January 1 2031. Click here for our previous news item on this topic. (Ch. 135 (A.B. 398), Laws 2017, effective July 25, 2017)