14. (1) For purposes of paragraph 40 of subsection 7 (1) of the Act, the following machinery, equipment and processing materials are prescribed: 1. Machinery and apparatus used primarily and directly in, i. the manufacture or production of tangible personal property, ii. the development of manufacturing or production processes, or iii. the development of tangible personal property for manufacture or production. 2. Machinery and apparatus used directly in the detection, prevention, measurement, treatment, reduction or removal of pollutants to water, soil or air if the pollutants are attributable to the manufacture or production of tangible personal property. 3. Equipment used in carrying refuse or waste from machinery or apparatus that is employed directly in the manufacture or production of tangible personal property or used for exhausting dust or noxious fumes produced by manufacturing or production operations. 4. Safety devices and equipment used in the prevention of accidents in the manufacture or production of tangible personal property. 5. Self-propelled trucks mounted on rubber-tired wheels for off-highway use exclusively at mines and quarries. 6. Internal combustion tractors, other than highway truck tractors, for use exclusively in “logging operations” as defined in section 1 of Regulation 1013 of the Revised Regulations of Ontario, 1990 made under the Act. 7. Logging wagons and logging sleds. 8. With respect to “logging operations” as defined in section 1 of Regulation 1013 of the Revised Regulations of Ontario, 1990 made under the Act, machinery, logging cars, cranes, captive balloons having a volume of 4,248 cubic metres or more, blocks and tackle, wire rope and logging boom chain, used exclusively in logging operations. 9. With respect to natural gas and oil wells, pipes or tubes commonly known as “oil-country goods” being casing or tubing and fittings, couplings, thread protectors and nipples for them, and drill pipe. 10. Machinery and apparatus, including wire rope, drilling bits and seismic shot-hole casing, used in exploration for or discovery or development of petroleum, natural gas or minerals. 11. Repair and maintenance equipment used in servicing machinery and equipment described in paragraphs 1 to 10. 12. Parts for machinery and equipment described in paragraphs 1 to 11. 13. Drilling mud and additives for it. 14. Geophysical surveying precision instruments and equipment for use exclusively in prospecting for, or in the exploration and development of, petroleum, natural gas, water wells or minerals, or for geophysical studies for engineering projects, including the following: i. magnetometers, ii. gravity meters and other instruments designed to measure the elements, variations and distortions of the natural gravitational force, iii. field potentiometers, meggers, non-polarizing electrodes and electrical equipment for making measurements in drill holes, iv. instruments and equipment for seismic prospecting, v. geiger muller counters and other instruments for radioactive methods of geophysical prospecting, vi. electrical and electronic amplifying devices and electrical thermostats designed to be used with any of the machinery and equipment described in subparagraphs i to v, and vii. repair parts, tripods and fitted carrying cases for any of the machinery and equipment described in subparagraphs i to vi. 15. Materials, excluding grease, lubricating oils or fuel for use in internal combustion engines, consumed or expended by manufacturers or producers directly in, i. the process of manufacture or production of tangible personal property, ii. the development of manufacturing or production processes, iii. the development of tangible personal property for manufacture or production, or iv. the detection, measurement, prevention, treatment, reduction or removal of pollutants described in paragraph 2. 16. Plans and drawings, related specifications and substitutes for them and reproductions of any of them used directly in, i. the manufacture or production of tangible personal property, ii. the development of manufacturing or production processes, iii. the development of tangible personal property for manufacture or production, or iv. the detection, measurement, prevention, treatment, reduction or removal of pollutants described in paragraph 2. 17. Materials for use exclusively in the manufacture of plans, drawings, specifications, substitutes or reproductions referred to in paragraph 16. 18. Typesetting and composition, metal plates, cylinders, matrices, film, artwork, designs, photographs, rubber material, plastic material and paper material, when impressed with or displaying or carrying an image for reproduction by printing and used exclusively in the manufacture or production of printed material.  O. Reg. 288/91, s. 1 (1); O. Reg. 162/95, s. 4 (1). (1.1) The following machinery and equipment are excluded from the exemption conferred by paragraph 40 of subsection 7 (1) of the Act: 1. Office equipment. 2. Any vehicle, and parts for it, that requires or has a permit issued under subsection 7 (7) of the Highway Traffic Act. 3. With respect to the production of electricity for use primarily in a building that normally utilizes electricity supplied by a public or private utility if that building is used primarily for activities other than the manufacture or production of tangible personal property, i. electrical generators and electric alternators that are portable or mobile, including drive motors for them, ii. generator and alternator sets that are portable or mobile, iii. stand-by electric generators and stand-by electric alternators, including drive motors, and iv. stand-by generator and stand-by alternator sets. 4. Containers designed for repeated use that are not for use exclusively and directly in the manufacture or production of tangible personal property. 5. Machinery and equipment, including transformers, used in the transmission or distribution of electricity, other than machinery and equipment used within the plant where the electricity is generated or within any other plant where tangible personal property, other than electricity, is manufactured or produced. 6. Pipes, valves, fittings, pumps, compressors, regulators and equipment ancillary to any such machinery or equipment, used in transporting or distributing tangible personal property, but not including pipes, valves, fittings, pumps, compressors, regulators or similar equipment used within a manufacturing or production facility or in gathering systems for natural gas, natural gas liquids or oil in natural gas fields or oil fields.  O. Reg. 288/91, s. 1 (1); O. Reg. 162/95, s. 4 (2). (2) Revoked:  O. Reg. 379/01, s. 2 (1). (3) For the purpose of paragraph 40 of subsection 7 (1) of the Act the following persons and corporations are prescribed as not entitled to the exemption, except for the exemption for processing materials conferred in paragraph 40: 1. Her Majesty in right of Ontario and all servants or agents of the Crown in right of Ontario with respect to machinery or equipment purchased by them as servants or agents of the Crown. 2. The corporation of a municipality including a district, metropolitan or regional municipal corporation. 3. A public utility commission, transportation commission, public library board, board of park management, board of health, police services board, planning board or any other board, commission, committee, body or local authority established or exercising any power or authority under any Act with respect to any of the affairs or purposes of a municipality or two or more municipalities or parts thereof. 4. Ontario Hydro, the Urban Transportation Development Corporation Ltd. or any corporation all of the directors of which are appointed by the Lieutenant Governor in Council. 5. Contractors and subcontractors in respect of their consumption of machinery and equipment to which paragraph 40 of subsection 7 (1) of the Act applies, consumed for the purpose of performing a contract or subcontract for the provision or installation of such machinery or equipment for any person or corporation to whom paragraph 1, 2, 3 or 4 applies.  R.R.O. 1990, Reg. 1012, s. 14 (3); O. Reg. 80/93, s. 1; O. Reg. 379/01, s. 2 (2). (4) Every manufacturer or producer of electricity, other than a utility engaged in the manufacture or production of electricity for sale or a person or corporation referred to in subsection (3), is excluded from the exemption conferred by paragraph 40 of subsection 7 (1) of the Act with respect to the machinery or equipment used to produce the electricity.  R.R.O. 1990, Reg. 1012, s. 14 (4). (5) Subsection (4) does not apply where the electricity is used, (a) directly in the manufacture or production by the manufacturer or producer of tangible personal property other than electricity; or (b) directly in and exclusively for the research or development by the manufacturer or producer of either goods for manufacture or production or manufacturing or production processes.  R.R.O. 1990, Reg. 1012, s. 14 (5). (6) Every manufacturer or producer is excluded from the exemption conferred by paragraph 40 of subsection 7 (1) of the Act in respect of machinery, equipment and processing materials described in paragraph 18 of subsection (1) unless such machinery, equipment and processing materials are used exclusively in the manufacture or production of printed material by the manufacturer.  O. Reg. 162/95, s. 4 (3); O. Reg. 1/97, s. 2. (7) For the purposes of paragraph 2.2 of subsection 7 (1) of the Act, telephone services that are acquired for domestic or family purposes are excluded from the exemption.  O. Reg. 404/96, s. 1.