Comparison
Multi-State Manufacturing Exemption Comparison
Side-by-side comparison of manufacturing sales tax exemptions across Florida, Georgia, Indiana, Texas, and North Carolina — machinery, utilities, repair parts, consumables, and documentation.
| State | Machinery & equipment | Utilities consumed in production | Repair & replacement parts | Consumables & supplies | Documentation required |
|---|---|---|---|---|---|
| FL Florida | Repair authority applies to qualifying industrial machinery and equipment used in manufacturing, processing, compounding, production, or preparation for shipping at a fixed Florida location. | Not addressed by the repair authority; analyze production utilities separately under Florida utility-specific rules and records. | Repair labor and incorporated parts or materials may be exempt when they repair qualifying industrial machinery and equipment; preventive maintenance can qualify, but stand-alone equipment replacements need separate review. | Materials and supplies consumed by the repairer, rather than incorporated into qualifying machinery, generally require separate treatment under the repair rules. | Retain exemption certificates, invoices, work orders, equipment descriptions, fixed-location production-use records, and support for component repair versus stand-alone replacement treatment. |
| GA Georgia | Exempt when necessary and integral to manufacturing tangible personal property at a manufacturing plant. | Energy used directly or indirectly in the manufacture of tangible personal property is exempt (separate from machinery exemption). | Exempt when associated with qualifying machinery; spare parts purchased exempt with later use tracking. | Industrial materials and packaging supplies separately exempt under § 48-8-3. | Form ST-5M exemption certificate or direct pay permit; substantial-purpose methodology for mixed-use machinery. |
| IN Indiana | Exempt for direct use in direct production; immediate-effect test on the article produced. | Predominant-use exemption — must show more than 50% of metered utility consumed in direct production. | Exempt when used on machinery that qualifies for the direct-use-in-direct-production exemption. | Materials consumed in direct production are exempt; office and warehouse supplies are not. | Form ST-200 sub-metering study; ST-105 exemption certificate; predominant-use documentation. |
| TX Texas | Exempt when used directly in the actual manufacturing, processing, or fabrication of tangible personal property for ultimate sale. | Predominant-use exemption available on a meter-by-meter basis after a qualifying utility study. | Exempt when used on exempt manufacturing equipment; labor to repair is also exempt. | Materials becoming a component part of the product are exempt; general consumables may not be. | Form 01-339 exemption certificate; utility study for predominant-use; vendor-by-vendor certificate refresh. |
| NC North Carolina | Mill machinery, parts, and accessories taxed at a privilege tax rate (currently exempt from state sales tax; small per-article cap historically). | Electricity, fuel, and piped natural gas sold to a manufacturer for use in manufacturing are exempt. | Repair and replacement parts for mill machinery follow the same mill-machinery treatment. | Ingredient or component parts of manufactured products are exempt; lubricants and fuel for machinery may also qualify. | Form E-595E exemption certificate; mill-machinery / industrial-machinery codes on the certificate. |
Florida
- Machinery & equipment
- Repair authority applies to qualifying industrial machinery and equipment used in manufacturing, processing, compounding, production, or preparation for shipping at a fixed Florida location.
- Utilities consumed in production
- Not addressed by the repair authority; analyze production utilities separately under Florida utility-specific rules and records.
- Repair & replacement parts
- Repair labor and incorporated parts or materials may be exempt when they repair qualifying industrial machinery and equipment; preventive maintenance can qualify, but stand-alone equipment replacements need separate review.
- Consumables & supplies
- Materials and supplies consumed by the repairer, rather than incorporated into qualifying machinery, generally require separate treatment under the repair rules.
- Documentation required
- Retain exemption certificates, invoices, work orders, equipment descriptions, fixed-location production-use records, and support for component repair versus stand-alone replacement treatment.
Georgia
- Machinery & equipment
- Exempt when necessary and integral to manufacturing tangible personal property at a manufacturing plant.
- Utilities consumed in production
- Energy used directly or indirectly in the manufacture of tangible personal property is exempt (separate from machinery exemption).
- Repair & replacement parts
- Exempt when associated with qualifying machinery; spare parts purchased exempt with later use tracking.
- Consumables & supplies
- Industrial materials and packaging supplies separately exempt under § 48-8-3.
- Documentation required
- Form ST-5M exemption certificate or direct pay permit; substantial-purpose methodology for mixed-use machinery.
Indiana
- Machinery & equipment
- Exempt for direct use in direct production; immediate-effect test on the article produced.
- Utilities consumed in production
- Predominant-use exemption — must show more than 50% of metered utility consumed in direct production.
- Repair & replacement parts
- Exempt when used on machinery that qualifies for the direct-use-in-direct-production exemption.
- Consumables & supplies
- Materials consumed in direct production are exempt; office and warehouse supplies are not.
- Documentation required
- Form ST-200 sub-metering study; ST-105 exemption certificate; predominant-use documentation.
Texas
- Machinery & equipment
- Exempt when used directly in the actual manufacturing, processing, or fabrication of tangible personal property for ultimate sale.
- Utilities consumed in production
- Predominant-use exemption available on a meter-by-meter basis after a qualifying utility study.
- Repair & replacement parts
- Exempt when used on exempt manufacturing equipment; labor to repair is also exempt.
- Consumables & supplies
- Materials becoming a component part of the product are exempt; general consumables may not be.
- Documentation required
- Form 01-339 exemption certificate; utility study for predominant-use; vendor-by-vendor certificate refresh.
North Carolina
- Machinery & equipment
- Mill machinery, parts, and accessories taxed at a privilege tax rate (currently exempt from state sales tax; small per-article cap historically).
- Utilities consumed in production
- Electricity, fuel, and piped natural gas sold to a manufacturer for use in manufacturing are exempt.
- Repair & replacement parts
- Repair and replacement parts for mill machinery follow the same mill-machinery treatment.
- Consumables & supplies
- Ingredient or component parts of manufactured products are exempt; lubricants and fuel for machinery may also qualify.
- Documentation required
- Form E-595E exemption certificate; mill-machinery / industrial-machinery codes on the certificate.
Educational summary only. State manufacturing exemptions turn on operational facts. Verify any position against current state department-of-revenue guidance and your specific transactions.