Nebraska Enacts Exemption for Agricultural Machinery Parts

Apr 24th, 2014

The Nebraska legislature recently created an exemption for parts for agricultural machinery and equipment. This exemption goes into effect on October 1, 2014.

The new law will exempt the sale of repair or replacement parts for agricultural machinery and equipment used in commercial agriculture. Currently, Nebraska exempts sales of agricultural machinery and equipment but not the parts for that machinery or equipment. The new exemption will apply to these parts.

After the law goes into effect in October, taxpayers will also be able to seek refunds for tax paid on purchases of these parts if they paid that tax before the law took effect. The taxpayer will have to file a claim within three years of the purchase to claim this refund.