Iowa has enacted legislation that modifies the state’s sales tax exemptions for the purchase of items used in manufacturing and other activities. The state’s exemption for the sale or rental of certain computers, machinery and equipment, including materials used to construct them, is amended to now also include replacement parts and supplies. To qualify for the exemption, the items must be directly and primarily used for any of the following: processing by a manufacturer, to maintain the integrity of the product or unique environmental conditions, in research and development of new products or processes, or recycling. Qualified items may also be pollution-control equipment or computers used in processing or storage of data or information by an insurance company, financial institution, or commercial enterprise. For an update on this news item, click here. (H.F. 2433, Laws 2016, effective March 21, 2016)