Illinois Manufacturer's Purchase Credit: Action Required by June 30th!
If you operate manufacturing plants in Illinois, then you need to be aware that June 30th is the deadline for filing the proper forms to obtain the Illinois Manufacturer’s Purchase Credit (MPC) for calendar year 2009. There is NO filing extension available—June 30th is THE deadline. On the positive side, a blank form with zeros can be filed by June 30th and then amended later with the actual figures.
Background on Illinois MPC
Beginning September 1, 2004, qualifying manufacturers may earn a Manufacturer's Purchase Credit (MPC). The MPC is earned when a manufacturer purchases manufacturing or graphic arts machinery and equipment that qualifies for the existing sales/use tax exemptions. MPC may be used to pay state sales or use tax on future purchases of qualifying production-related tangible personal property.
All unused MPC expires the last day of the second calendar year following the year in which the original tax-exempt purchase was made. MPC may not be transferred to another party.
The MPC is equal to half of the 6.25% state tax that would have been owed if the purchase was not otherwise exempt.
Goto ILLINOIS MPC to access the forms and statutes.
Please contact me at email@example.com for assistance in filing the forms and analyzing your records to quantify the amount of your Illinois MPC.
Brian Strahle is the owner of LEVERAGE SALT, LLC where he provides state and local tax technical services to accounting firms, law firms and tax research organizations across the United States. He also writes a weekly column in Tax Analysts State Tax Notes entitled, "The SALT Effect." For more info, visit his website: www.leveragestateandlocaltax.com
You can reach Brian at firstname.lastname@example.org.
Because state and local taxes are deceptively simple and endlessly complicated.