Sales and Use Tax Refund Opportunities Manufacturing Companies
Texas and a majority of states allow a manufacturing company to purchase materials and equipment used in the manufacturing process tax free. Generally, to qualify for the exemption, the materials and equipment must be necessary and essential to the manufacturing process.
As businesses are dealing with the COVID-19 pandemic, cash flow is crucial to manufacturing companies. To enhance cash flow, manufacturing companies should review its sales and use tax procedures to determine if sales and use taxes for certain purchases of materials and equipment were paid in error. If sales and use taxes were paid in error, there may be an opportunity to obtain a cash refund of such taxes.
Need assistance in managing the business planning processes? Freeman Law advises clients with corporate and other entity formations and reorganizations. Restructuring entities—through conversions, mergers, and liquidations—can involve particularly complex tax and regulatory considerations. Freeman Law provides experienced tax and business counsel, helping our clients achieve their organizational goals in a tax-efficient manner. Schedule a consultation or call (214) 984-3000 to discuss your corporate structuring or business and tax planning concerns.
