HLB Gross Collins Varied

Fuel and Electricity Exemption for Georgia Manufacturers

There is a temporary, partial exemption from state sales tax for the sale or use of natural or artificial gas, No. 2 fuel oil, No. 6 fuel oil, propane, petroleum coke, or coal that is used directly or indirectly in the manufacture or processing of tangible personal property primarily for resale within Georgia. The exemption also applies to the fuel cost recovery component of retail electric rates for electricity used directly or indirectly in the manufacturing or processing of tangible personal property primarily for resale.

The exemption applies to the period that begins July 1, 2008, and ends December 31, 2010, and does not apply to local sales or use taxes. As usual, there are restrictions. A Georgia sales tax exemption also applies to the sale of electricity used directly in the manufacture of a product if the cost of the electricity exceeds 50% of the cost of all materials used in the product.