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IMA Achieves Tax Victory for Manufacturers

By November 18, 2019 December 13th, 2019 No Comments

Today, the Illinois Manufacturers’ Association successfully championed further tax law changes that will make it easier for manufacturers to take advantage of the recently-enacted Manufacturers Purchase Credit (MPC) that eliminates state and local sales taxes for consumables used in the manufacturing process. As a result of the IMA’s advocacy, beginning on July 1, 2019, manufacturers are not required to pay sales tax on items such as fuel, oil, lubricants, coolants, and other consumables, saving tens of millions of dollars.

While the IMA successfully passed a new permanent MPC in the spring legislative session, lawmakers failed to include language allowing “blanket certificates” meaning that companies had to submit an ST-587 form for every transaction. While the new MPC saves Illinois manufacturers millions of dollars, the process to obtain the exemption was duplicative and cumbersome.

This morning, IMA-initiated language included in SB 119 that passed the General Assembly allowing manufacturers to provide a “blanket certificate” to suppliers rather than separate forms for every transaction. Once signed into law, Illinois manufacturers will only have to provide the form to suppliers once rather than for every sale, making it far easier to comply with the law.

This is another significant victory for IMA members and manufacturers across Illinois. The IMA will inform members once the bill is signed into law because it will take effect immediately.

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