California AB856 would exempt sales and use tax on certain manufacturing equipment.

California AB856 amends the Revenue and Taxation Code to exempt sales and use tax on the purchase and storage of qualified tangible personal property used in manufacturing, processing, refining, fabricating, or recycling processes. This exemption applies to businesses primarily engaged in manufacturing and research and development. Exemptions do not apply to certain consumables, furniture, inventory, and equipment used in extraction or storage of finished products. The exemption is effective from July 1, 2014, to January 1, 2031.

California AB856 would exempt sales and use tax on certain manufacturing equipment.

California AB856 amends the Revenue and Taxation Code to exempt sales and use tax on the purchase and storage of qualified tangible personal property used in manufacturing, processing, refining, fabricating, or recycling processes. This exemption applies to businesses primarily engaged in manufacturing and research and development. Exemptions do not apply to certain consumables, furniture, inventory, and equipment used in extraction or storage of finished products. The exemption is effective from July 1, 2014, to January 1, 2031.