Form CDTFA-230-MC Construction Contracts - Partial Exemption Certificate for Manufacturing, Research and Development Equipment - California

Form CDTFA-230-MC is a California Department of Tax and Fee Administration form also known as the "Construction Contracts '- Partial Exemption Certificate For Manufacturing, Research And Development Equipment". The latest edition of the form was released in February 1, 2018 and is available for digital filing.

Download a PDF version of the Form CDTFA-230-MC down below or find it on California Department of Tax and Fee Administration Forms website.

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California Department of Tax and Fee Administration
INFORMATION UPDATE
Assembly Bill (AB) 398 (Chapter 135, Stats. 2017) and AB 131 (Chapter 252, Stats. 2017) amended Revenue and Taxation Code
(R&TC) section 6377.1, which provides for a partial sales and use tax exemption for certain manufacturing and research development
equipment. Among other changes, the amendments change, beginning January 1, 2018:
• The definition of a “qualified person” to include persons primarily engaged in electric power generation or production or
storage and distribution as described in NAICS codes 221111 to 221118, or 221122.
• The definition of “qualified tangible personal property” to include special purpose buildings and foundations used as an integral
part of the generation or production or storage and distribution of electric power.
The exemption certificate forms (CDTFA-230-M and CDTFA-230-MC) are included in Regulation 1525.4, Manufacturing and Research
& Development Exemption. We will revise the posted exemption certificate forms after revisions to Regulation 1525.4 are completed.
Until then taxpayers may continue to use the current forms posted on our website.
We suggest that if applicable, the person issuing the exemption certificate add a statement on the certificate that they are “primarily
engaged in the generation or production, or storage and distribution of electric power as described in NAICS codes 221111 to
221118, or 221122.”
For more information about the amendments to R&TC section 6377.1, please see our online guide,
Manufacturing and Research &
Development Equipment
Exemption.
California Department of Tax and Fee Administration
INFORMATION UPDATE
Assembly Bill (AB) 398 (Chapter 135, Stats. 2017) and AB 131 (Chapter 252, Stats. 2017) amended Revenue and Taxation Code
(R&TC) section 6377.1, which provides for a partial sales and use tax exemption for certain manufacturing and research development
equipment. Among other changes, the amendments change, beginning January 1, 2018:
• The definition of a “qualified person” to include persons primarily engaged in electric power generation or production or
storage and distribution as described in NAICS codes 221111 to 221118, or 221122.
• The definition of “qualified tangible personal property” to include special purpose buildings and foundations used as an integral
part of the generation or production or storage and distribution of electric power.
The exemption certificate forms (CDTFA-230-M and CDTFA-230-MC) are included in Regulation 1525.4, Manufacturing and Research
& Development Exemption. We will revise the posted exemption certificate forms after revisions to Regulation 1525.4 are completed.
Until then taxpayers may continue to use the current forms posted on our website.
We suggest that if applicable, the person issuing the exemption certificate add a statement on the certificate that they are “primarily
engaged in the generation or production, or storage and distribution of electric power as described in NAICS codes 221111 to
221118, or 221122.”
For more information about the amendments to R&TC section 6377.1, please see our online guide,
Manufacturing and Research &
Development Equipment
Exemption.
CDTFA-230-MC REV. 3 (2-18)
STATE OF CALIFORNIA
CONSTRUCTION CONTRACTS—PARTIAL EXEMPTION CERTIFICATE FOR
CALIFORNIA DEPARTMENT OF
MANUFACTURING, RESEARCH AND DEVELOPMENT EQUIPMENT
TAX AND FEE ADMINISTRATION
Section 6377.1
This is a partial exemption from sales and use taxes at the rate of 4.1875 percent from July 1, 2014, to December 31, 2016, and at the
rate of 3.9375 percent from January 1, 2017, to June 30, 2022. You are not relieved from your obligations for the remaining state tax and
local and district taxes on this transaction.
I hereby certify that the tangible personal property described below and purchased from:
SELLER’S/LESSOR’S NAME
SELLER’S/LESSOR’S ADDRESS (street, city, state, ZIP code)
is qualified tangible personal property and will be used by me in the performance of a construction contract for a qualified person who
will use that property as an integral part of the manufacturing, processing, refining, fabricating, or recycling process, or as a research or
storage facility for use in connection with those processes.
Description of qualified tangible personal property purchased
1
If this is a specific partial exemption certificate, provide the purchase order or sales invoice number and a precise description of the
property being purchased. If you want this certificate to be used as a blanket certificate for future purchases, describe generally the type
of property you will be purchasing and ask your vendor to keep this certificate on file.
I further certify I am performing a construction contract for a qualified person primarily engaged in manufacturing, processing, refining,
fabricating, or recycling as described in codes 3111 to 3399 in the North American Industry Classification System (NAICS)
2
or primarily
engaged in biotechnology, or physical, engineering, and life sciences research and development as described in codes 541711 and
541712 of the NAICS.
I understand that if I use the property for any purpose other than indicted above, I am required to report and pay the state tax measured
by the sales price of the property to me.
NAME OF PURCHASER
SIGNATURE OF PURCHASER, PURCHASER’S EMPLOYEE, OR AUTHORIZED REPRESENTATIVE
PRINTED NAME OF PERSON SIGNING
TITLE
ADDRESS OF PURCHASER
PERMIT NUMBER (if you are not required to hold a permit, explain why)
TELEPHONE NUMBER
(
)
EMAIL ADDRESS OF PERSON SIGNING
DATE
1
See Regulation 1525.4 (b)(9) for a description of what is included and excluded from “qualified tangible personal property.”
2
Official 2012 US NAICS Manual, U.S. Office of Management and Budget, 2012 edition.
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Download Form CDTFA-230-MC Construction Contracts - Partial Exemption Certificate for Manufacturing, Research and Development Equipment - California

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