A recent petition from a taxpayer to the New York Commissioner of Taxation and Finance inquired whether or not any of the equipment or trucks used to remove debris from railroad construction sites qualified as production equipment and thereby be eligible for the production exemption. The taxpayer’s equipment, including rock crushers, skidders, front end loaders, and other yard equipment used to process used railroad ties, rails, scrap metal, and concrete for sale may be eligible for the exemption if used directly and predominantly (more than 50%) in the production of tangible personal property for sale. Moreover, if the taxpayer has already paid sales tax on its purchase of the machinery and equipment and can establish that they are directly and predominantly used in the production of tangible personal property for sale, the taxpayer may apply for a credit or refund of the sales tax paid. On the other hand, the motor vehicles (trucks) used in transportation and not in production did not qualify for the production exemption. (TSB-A-06(34)S, New York Commissioner of Taxation and Finance)