A tax advisory has been issued regarding the manufacturing exemption for computer hardware and peripherals. These items qualify for the exemption if they are used directly in a “qualifying” manufacturing operation. The advisory has a definition for “qualifying” operations that states “direct or control machinery or equipment that acts upon or interacts with tangible personal property” or “if they act upon or interact with an item of tangible personal property”. Computer systems and peripherals, such as monitors and keyboards can also qualify for the exemption provided they meet certain “used directly” tests. (Excise Tax advisory 2012-8S.08.12.13601, issue date March 31, 2003)