The State of California has enacted a new law effective July 1, 2014, allowing manufacturers and certain Research and Development (“R&D”) companies a partial sales/use tax exemption on certain manufacturing and R&D equipment purchases.

This tax alert contains information on the following:

  • How much Sales or Use Tax is Exempt?
  • Who is Eligible?
  • Who is a Qualified Purchaser?
  • What is Qualified Property?
  • What Process must the Property be Used in?
  • GHJ’ Recommendation