Larger credit can, depending on location, offset up to 90 percent of a manufacturer's increased income tax liability following a major expansion. These larger investment tax credits can be carried forward for 10 years. An existing firm cannot take both the jobs tax credit and the investment tax credit. Computer software is taxable on the value of its storage medium, effectively exempting it from property taxation. Purchases of machinery, equipment, and materials used to control air and water pollution, including the recycling process, are exempt from sales tax.
Facilities designed to control air and water pollution are exempt from property tax.
Additionally, pollution-control facilities are eligible for accelerated depreciation treatment in determining corporate tax liability. Employers who construct childcare centers can deduct the total cost of building the facility at 10 percent for 10 years. Machinery incorporated as additional machinery for the first time in an existing plant and used directly in the remanufacture of aircraft engines, parts and components, and overhead materials by a government defense contractor for DOD or NASA is exempt from sales and use taxes. Purchases of industrial materials used as component parts in the manufacturing process are exempt from sales and use taxes. Electricity used directly in manufacturing a product is exempt from sales taxation if it totals at least 50 percent of materials costs.