Question

Granite Manufacturing Company is going to hire a contractor to build a new manufacturing plant in Connecticut.   The Company comes to you for advice regarding what sales and use tax exemptions would be available to them in constructing the new plant. The manufacturing complex will include a separate building for research and development. What advice can you give them? Identity possible savings in their purchases.  

Answer 1

Granite Manufacturing Company is constructing a new plant having a seperate block for its R&D operatons

What tax exemptions might they can get because if this new manufacturing plant

The law provided some exemptions to the sales and use tax for the manufacturers for the manufacturing equipment and Research and development equipment installed in their process

When the business in under qualified business line and the person conductiong the business are qualified person then for the qualifying Assets the partial sales and use tax exemption is granted and it would be at a rate of 3.9375% i.e 50% of the actual rate

to be means a person who is primarily engaged (50 percent or more of the time) in those lines of business described in the North American Industry Classification System

Upon these qualifications,If qualified the business will be granted by a Partial exemption certificate through which they can get the exemption of sales and use tax partially

All d best fpr yor semester