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Frequently Asked Questions
Questions:
Answer:
Does shelving used to store a finished product qualify for the PM&E exemption? |
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Yes. Shelving used to store a finished product, provided that it is located
in the first storage area after the production line, qualifies for the PM&E exemption. |
Do grinders used by saw mills to sharpen planer knives and saw blades qualify for the PM&E exemption? |
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No. Machinery or equipment used to maintain and repair exempt production machinery or equipment does not qualify for the PM&E exemption as it is not used directly in the manufacturing process. |
Do hand tools used in a manufacturing process qualify for the PM&E exemption? |
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Yes. Hand tools used directly in a manufacturing process qualify for the PM&E exemption.
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I design web pages. Do I qualify for the PM&E exemption? |
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No. Designing web pages is a service and does not qualify for the PM&E exemption. |
I am a manufacturer and package my own products at the manufacturing site. Does the packaging equipment qualify for the PM&E exemption? |
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Yes. If you package the product as part of the line operation, the packaging equipment qualifies for the PM&E exemption. |
I develop computer software from my home. Do I qualify for the PM&E exemption? |
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Yes. You qualify for the PM&E exemption if your sales or manufactured costs exceed $30,000 per year. |
I am a software developer. Does software that I use to develop other software qualify for the PM&E exemption? |
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No. Software that you use to develop other software does not qualify for the PM&E exemption as software is neither machinery nor equipment. |
I buy wines from various producers and blend them to make new types of wine for sale. Do I qualify for the PM&E exemption? |
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No. You do not qualify for the PM&E exemption as blending does not qualify as manufacturing. |
I am starting a new manufacturing business and it will take over a year before I am operational and making over $30,000 in sales. Do I qualify for the PM&E exemption before I am operational? |
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Yes. You qualify for the PM&E exemption if you have a reasonable expectation that your sales will be over $30,000 per year once you are operational. |
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