Michigan Manufacturing Exemption Applies to Certain Personal Protective Equipment

Jul 29th, 2020

The Michigan Department of Treasury recently addressed the application of the industrial processing exemption to the purchase of personal protective equipment (PPE) and safety equipment. It advised that the industrial processing exemption can apply to the purchase of PPE and safety equipment under certain circumstances. To qualify for the industrial processing exemption, the property must be (1) purchased by the industrial processor or another person engaged in an industrial processing activity on behalf of an industrial processor, including purchases made directly by an employee of an industrial processor; (2) used for the safety of employees or other authorized personnel; and (3) used in an industrial processing activity. Note that if the property is used for both exempt and nonexempt activities, the exemption may be apportioned based on its use.