Originally published in State Tax Notes.

Many states have created special treatment for manufacturers, including tax exemptions, credits, and special income tax apportionment rules. In this edition of A Pinch of SALT, we explore the state tax treatment of manufacturers, including their relevance, definitions, and special treatment.


Manufacturing has been woven into the fabric of our economy for centuries, although its predominance has diminished dramatically since the 1960s. In his 2012 State of the Union speech, President Obama discussed the need to ‘‘lay out a blueprint for an economy that is built to last’’ and said ‘‘this blueprint begins with American manufacturing.’’ This renewed focus on manufacturing has put a spotlight on federal and state law, motivating policymakers to stimulate that sector of the U.S. economy.

Manufacturers generally require a significant amount of property in the state, employ numerous workers from all skill levels, and frequently purchase materials from local businesses. Providing incentives to manufacturers to relocate or remain in a state is especially attractive for obvious reasons, including an improved economic climate.

Please see full article below for more information.

LOADING PDF: If there are any problems, click here to download the file.

Written by:

Published In:


DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Sutherland Asbill & Brennan LLP | Attorney Advertising

Don't miss a thing! Build a custom news brief:

Read fresh new writing on compliance, cybersecurity, Dodd-Frank, whistleblowers, social media, hiring & firing, patent reform, the NLRB, Obamacare, the SEC…

…or whatever matters the most to you. Follow authors, firms, and topics on JD Supra.

Create your news brief now - it's free and easy »

All the intelligence you need, in one easy email:

Great! Your first step to building an email digest of JD Supra authors and topics. Log in with LinkedIn so we can start sending your digest...

Sign up for your custom alerts now, using LinkedIn ›

* With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name.