Manufacturing represents a key industry for TaxMatrix. Since our inception, we have worked with taxpayers ranging from small to mid-size manufacturers (over 30,000 sq. ft.) to some of the largest multi-state manufacturers in the world. Sales & use tax recovery is a good business practice for driving dollars to your bottom line and increasing cash flow.

For manufacturing and for research and development (R&D), taxability comes down to “how” and “where” those purchases are used. For states that qualify, the taxpayer must manufacture, fabricate, or process tangible personal property for sale. The manufacturing equipment and other related purchases (safety gear, packaging, software, etc.) must work to fundamentally “change” TPP; otherwise, it may not qualify. (Wholesalers/warehousing and some assembly or soft manufacturing may not apply depending on the state.)

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