Understanding Nebraska Sales Tax Exemptions for Manufacturers: A Comprehensive Guide

• Nebraska sales tax exemption for manufacturers applies to businesses involved in fabricating, assembling, processing, refinishing, or refining activities
• 50% or more of revenue must be generated from sale of products resulting from these activities
• Machinery and equipment must be used 50% or more of the time performing a manufacturing task
• Manufacturing requires physical change to tangible personal property
• Exemption covers items used within manufacturing process, excludes items used before or after
• Qualifying items include ingredient or component parts, machinery and equipment, testing equipment, fuel for production
• Non-qualifying items include hand tools powered solely by human effort, computers not used for manufacturing, office equipment, vehicles registered for road operation
• To claim exemption, complete Form 13 “Nebraska Resale or Exempt Sale”

Source: taxconnections.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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