Tax Alert

Georgia Offers Phase-Out of Sales and Use Tax on Energy Used in Manufacturing
(Jan. 23, 2013)

Effective Jan. 1, 2013, Georgia provides a sales and use tax exemption for energy purchases that are necessary and integral to the manufacture of tangible personal property at a manufacturing plant.

The exemption will be phased in over a 4-year period as follows:

2013: 25 percent of exemption
2014: 50 percent of exemption
2015: 75 percent of exemption
2016 and future years: 100 percent exemption
Manufacturers should review their activities in Georgia to determine:

  • The portion of operations in Georgia that qualify as a manufacturing plant
  •  The amount of energy purchases eligible for the exemption

Manufacturers must provide their energy suppliers with Georgia Forms ST-5M, “Sales and Use Tax Certificate of Exemption Manufacturers,” and ST-5M Addendum, “Addendum for Metered Energy Sold to a Manufacturer,” to claim the exemption.

Georgia localities are able to enact statutes to impose local sales and use taxes on the energy purchases that would otherwise be exempt. At this time we do not believe that any such statues have been enacted.

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Dan Megathlin

Kimberly Ciamarra

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Daniel Megathlin
Daniel Megathlin
Indirect Tax Services Leader