Industrial Machinery Tax Credit

Credit of 1% to 10% for the purchase, third party installation and repair of qualified industrial machinery.

Program Overview

Credit Types

• Up to 50% of Franchise & Excise Tax

Credit Amount by Investment

• <$100,000,000 – 1% of investment
• >$100,000,000 – 3% of investment
• >$250,000,000 – 5% of investment
• >$500,000,000 – 7% of investment
• >$1,00,000,000 – 10% of investment

Carry Forward

• Unused credit can be carried forward for 15 years

Qualified Industrial Machinery

• Machinery, apparatus and equipment used for fabricating/processing
• Accessories and attachments to industrial machinery
• Repair parts for industrial machinery
• Installation and repair services for industrial machinery
• Hydraulic fluids, lubricating oils, and greases for industrial machinery
• Pollution control facilities required as a result of fabrication or processing
• Machinery for generating, producing, and distributing utilities
• Equipment for moving materials to and from the fabrication process
• Machinery used to package manufactured product
• Machinery for processing photographic film into negatives or prints for resale
• Machinery, apparatus equipment, and materials for mining
• Machinery utilized in pre-press and press operations in printing business including plates, cylinders, fluids and chemicals for mechanical and chemical actions or operations of machinery
• Machinery, apparatus, and equipment for the conversion of tangible personal property into taxable specified digital products for resale
• Machinery, apparatus, and equipment used in fabrication of trusses, windows, or door units when primarily engaged in sales of building supplies
• Machinery, apparatus, and equipment utilized in county or municipality sewage systems and water treatment facilities for water pollution control
• Machinery for fabrication of asphalt/crushed stone to be used by contractor in roads funded by tax revenues
• Machinery, apparatus, and equipment for fabricating prescription eyewear, a majority of which is dispensed to patients out of state
• Computer, computer network, computer software, and computer system used in the operation of a qualified data center

Eligible Industry

• Headquarters — Administrative, research and development, planning, marketing, personnel, legal not manufacturing, distribution, wholesaling or call centers
• Manufacturing — Principle business is fabricating or processing of tangible property for resale
• Data Centers — Building or buildings, either newly constructed or remodeled, housing high-tech computer systems and related equipment
• Warehousing and Distribution — Storage or distribution of finished tangible personal property. Does not include a location where tangible personal property is processed, manufactured, sold to customers or assembled
• Call Centers — Uses telecommunications in customer service, soliciting sales, reactivating accounts, surveys or research, fundraising, collecting receivables, reservations, taking or receiving orders.