Sales Tax Exemptions for Manufacturing

Sales Tax Exemption For Machinery And Equipment

Exemptions are available for:

  • Machinery or equipment used directly in manufacturing, see A.R.S. § 42-5159(B)(1).
  • Machinery, equipment or transmission lines used directly in producing or transmitting electrical power, but not including distribution, see A.R.S. § 42-5159(B)(4).
  • Machinery or equipment used in research and development, see A.R.S. § 42-5159(B)(15).
  • The electricity or natural gas for businesses that are principally engaged in manufacturing or smelting operations. See A.R.S. §§ 42-5063(C)(6) and 42-5159(G).
  • Questions can be directed to the Arizona Department of Revenue at 602-255-3381.

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