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3.300

Exempt Component of a Product or Consumed in Production

Tax Expenditure Name
Tax Expenditure Number
FY2016
FY2017
FY2018
FY2019
FY2020
Exempt Component of a Product or Consumed in Production
3.300
850.0
859.6
873.0
892.1
906.5
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Tax Item
Description
Origin
FY2020
3.301
Exemption for Items Used in Making Clothing
Sales of materials used in making clothes, such as thread and fabric, are exempt from sales tax.
M.G.L. c. 64H, § 6(v)
N.A.
3.302
Exemption for Materials, Tools, Fuels and Machinery Used in Manufacturing
Materials, tools, fuels and machinery, including spare parts, used in manufacturing are exempt from sales tax if they become components of a product to be sold or are consumed or directly used in the manufacturing process.
M.G.L. c. 64H, § 6(r) and (s)
636.9
3.303
Exemption for Materials, Tools, Fuels and Machinery Used in Research and Development
Materials, tools, fuels and machinery, including spare parts, used in research and development by certified manufacturing or research and development corporations are exempt from sales tax.
Comment: This estimate includes sales /use tax exemption of $7.5 million for qualifying limited partnership engaged in research activities under Section 66 in St. 2014, c. 287.
M.G.L. c. 64H, § 6(r) and (s)
100.1
3.304
Exemption for Materials, Tools, Fuels, and Machinery Used in Furnishing Power
Materials, tools, fuels, and machinery, including spare parts, used in furnishing gas, water, steam, or electricity to consumers through mains, lines or pipes are exempt from sales tax if they are consumed or directly used in furnishing the power.

Comment: Estimate excludes costs associated with the natural gas industry due to a lack of reliable data.
M.G.L. c. 64H, § 6(r) and (s)
70.7
3.306
Exemption for Materials, Tools, Fuels, and Machinery Used in Newspaper Printing
Materials, tools, fuels, and machinery, including spare parts, used in newspaper printing are exempt from sales tax if they become components of a product to be sold or are consumed or directly used in newspaper publishing.
M.G.L. c. 64H, § 6(r) and (s)
65.0
3.308
Exemption for Materials, Tools, Fuels, and Machinery Used in Agricultural Production
Materials, tools, fuels, and machinery, including spare parts, used in agricultural production are exempt from sales tax if they become components of products to be sold or are consumed or directly used in agricultural production. The exemption includes the same items when used for the production of livestock, poultry and animals in research. Also included are seeds and plants used to grow food for human consumption outside the agricultural industry (e.g., by home gardeners).

Comment: This estimate includes sales/use tax exemption of $3.0 million for materials, tools, fuel, machinery and replacement parts, used directly and exclusively in production and manufacturing of marijuana.
M.G.L. c. 64H, § 6(r), (s) and (p)
20.1
3.309
Exemption for Vessels, Materials, Tools, Fuels, and Machinery Used in Commercial Fishing
Materials, tools, fuels, and machinery, including spare parts, used in commercial fishing are exempt from sales tax if they become components of a product to be sold or are consumed or directly used in commercial fishing.
M.G.L. c. 64H, § 6(r), (s) and (o)
13.7
3.310
Exemption for Materials, Tools, Fuels and Machinery Used in Commercial Radio and TV Broadcasting
Materials, tools, fuels and machinery, including spare parts, used in commercial radio and TV broadcasting are exempt from sales tax.
M.G.L. c. 64H, § 6(r) and (s)
N.A.
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