Illinois Manufacturer’s Purchase Credit Set to Expire August 30, 2014

The Illinois Department of Revenue has posted information on its website regarding the Illinois Manufacturer’s Purchase Credit (MPC), which is set to expire on August 30, 2014. The MPC applies to both the Manufacturing and Graphic Arts industries. MPC cannot be earned on purchases with an invoice date of August 31, 2014 or later. Taxpayers must file the required earning report (ST-16 MPC, Annual Report of Manufacturer’s Purchase Credit Earned) by June 30, 2015 to report the MPC earned for periods between January 1 and August 30, 2014. Taxpayers must file the required usage report (ST-17 MPC, Annual Report of Manufacturer’s Purchase Credit Used) to report the MPC used during calendar year 2014 by June 30, 2015. If the taxpayer has remaining MPC that is used in subsequent years, the taxpayer must file the ST-17 by June 30th of the year following usage. MPC earned by a manufacturer or graphic arts producer expires the last day of the second calendar year following the calendar year in which the credit arose. Taxpayers are allowed to use any available MPC until it expires and can use available MPC to pay production-related audit liability. All other procedures regarding MPC usage remain the same as prior to August 30, 2014.

Posted on August 19, 2014