STATE INCENTIVES

Texas Sales and Use Tax Exemptions

SUMMARY

Texas businesses are exempt from paying state and local sales and use tax on leased or purchased machinery, equipment, replacement parts, and accessories that are used or consumed in the manufacturing, fabrication, or repairing of tangible personal property for ultimate sale. Certain restrictions apply and the exemption is not for all equipment. In some instances, labor or services that are typically taxable may be eligible for the exemption.

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