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.