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Partial Exemption for Industrial or Manufacturing in AL, LA, MS, or CA


How to apply a state-wide partial exemption for Industrial/Manufacturing in Alabama, California, Louisiana, or Mississippi.




At the time of this writing, entity use code I (Industrial production or manufacturers) applies a partial exemption in AL, LA, and MS only when using tax codes PM020704 and PM020700. A full exemption is applied when using this entity use code with any other tax code in these states.

Entity use code I applies a partial exemption to any tax code in CA.

To return a reduced rate for manufacturing machinery and equipment in each state:

In Al, LA, or MS: use entity use code I and tax codes PM020704 and PM020700.

In CA: use entity use code I, regardless of the tax code.