Illinois Denies Manufacturing Tax Exemption for Renewable Natural Gas Facility Equipment and Machinery

• Illinois Department of Revenue denied the manufacturing exemption for machinery and equipment used to convert landfill gas into renewable natural gas (RNG).
• The process, though multi-step and transformative, is excluded because the RNG is delivered through pipelines for sale.
• Machinery and equipment used in this process are subject to Illinois Retailers’ Occupational Tax or Use Tax.
• The ruling emphasizes that not all transformative processes qualify for the manufacturing exemption, especially those specifically excluded by statute.
• Businesses must carefully review statutory exclusions before assuming eligibility for manufacturing exemptions.

Source: salestaxinstitute.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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