The Pennsylvania Department of Revenue recently issued a Legal Letter Ruling stating that a taxpayer’s purchase of natural gas, machinery, equipment, parts, and supplies qualifies for the manufacturing exclusion when used “directly and predominantly” in the production of electricity at its generating peaking power facility. The facility generates power that is sold to a public utility. Since the taxpayer was utilizing the natural gas, machinery, equipment, parts, and supplies directly and predominantly in the production of electricity for sale, the State concurred that such purchases qualified for the manufacturing exemption. (Pennsylvania Department of Revenue, Legal Letter Ruling No. SUT-05-003, February 23, 2005)