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Production Activities, Machinery and Equipment

The Maryland sales and use tax does not apply to sales of tangible personal property used directly and predominately in production activities.

"Production activity" means

  • Assembling, manufacturing, processing, or refining tangible personal property for sale or resale (except for processing food or beverages by a food vendor);
  • Generating electricity for sale or for use in production activity;
  • Establishing or maintaining clean rooms or clean zones required by federal laws pertaining to manufacturing drugs, medical devices, or biologics;
  • Producing or repairing production machinery or equipment;
  • Laundering, maintaining or preparing textiles in providing the taxable service of commercial cleaning or laundering of textiles for a buyer engaged in a business that requires this service on a recurring basis of a commercial cleaning or laundering of the textiles;
  • Providing for the safety of employees, including safety glasses, hard hats and breathing apparatus; OR
  • Providing for quality control.


Links for Production Exemptions
Business Tax Types
Sales and Use Tax
Filing Information
Tax Exemptions
Production Exemptions
  Production Activities
  Exempt Equipment
  Exempt Production Activity Items
  Utilities and Fuel Exemptions
  Special Provisions for Printers
  Claiming Production Exemptions
  Claiming a Refund for Overpaid Taxes
  Purchases for Research and Development
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