Louisiana Manufacturing Phase-Out Tax Accelerated

The current manufacturing phase-out of Louisiana sales and use tax on certain manufacturing machinery and equipment has been accelerated to exclude 100% of the purchase, lease, or rental of qualifying manufacturing machinery and equipment for all periods beginning on or after July 1, 2009. The phased-in (complete phase-out of the tax) exclusion was originally scheduled to extend over a seven-year period that began on July 1, 2004, and was to have ended July 1, 2010. Previously, only 82% was to be excluded on July 1, 2009, and 100% on July 1, 2010. Furthermore, the exclusion of machinery and equipment used by a manufacturer in a plant facility predominately and directly in the actual manufacturing for agricultural purposes or the actual manufacturing process of an item of tangible personal property has been modified to include rubber tired farm tractors, can harvesters, cane loaders, cotton pickers, combines, haybalers, attachments and sprayers, clippers, cultivators, discs, plows, and spreaders. Additional regulations apply. For our previous news item on this topic, click here. (Act 12, S.B. 12, Laws 2008, 2nd Extraordinary Session, effective July 1, 2008)