A laboratory’s purchases of equipment and supplies to screen and test plasma for its clients did not qualify for Texas’s manufacturing exemption for sales and use tax because the screening and testing did not qualify as “manufacturing.” The laboratory’s clients manufacture medicines from source plasma. Clients send samples of source plasma to the laboratory to determine whether the client can use the plasma for manufacturing. The laboratory tests the samples and returns the results to its clients, who can then manufacture plasma with satisfactory results into medicine. The laboratory’s equipment and supplies do not make a chemical or physical change to any source plasma that is manufactured into medicine. The laboratory does not manufacture, process, or fabricate source plasma or other tangible personal property for ultimate sale. Rather, it provides testing and screening services for clients. Therefore, it cannot claim the manufacturing exemption on purchases of equipment and supplies. The testing and screening services are not an enumerated taxable service in Texas. The laboratory must pay tax at the time of purchase on all taxable items used in providing its testing and screening services, and it should not collect tax from its clients for the testing and screening services it performs. (Private Letter Ruling No. 2017010172, Texas Comptroller of Public Accounts, July 12, 2018)