The Illinois MPC reports detailing the amount of credit earned and used for the period January 1 to December 31, are due by June 30, of the following year. Form ST-16 is used to report the amount of the credit earned and ST-17 is used to report the amount of credit used. The MPC is a credit that is generated by the purchase of exempt manufacturing machinery and equipment. The credit is equal to 40% (January through June 1997) or 50% (periods after July 1, 1997) of the state tax of 6.25% of the exempt equipment purchases. The tax is not paid on the exempt items. Rather this is the calculation of the credit. The credit can then be used as payment of the state-level tax on manufacturing- related items, which are subject to tax, including consumable supplies, research and development, shipping, receiving and warehousing equipment. The credit can either be claimed on tax payments to vendors or from the Illinois use tax paid directly to the State.