Missouri Sales Tax Exemptions for Energy Efficient Solutions

The State of Missouri is committed to providing incentives and financing for a strong and growing energy solutions industry.

The various Sales Tax Exemptions allow for no sales tax on the purchase of solar panels; with these projects totaling $100,000s of dollars, this saves lots of money for the local economy.

This is currently taking place in about half of the states, but Missouri is certainly at the forefront of this movement due to their willingness to help boost sustainability in the state.

Manufacturing Energy Sales Tax Exemption

Missouri’s manufacturing exemption provides an exemption of sales tax to a manufacturing company for electrical energy, gas (natural, artificial, or propane), water, coal, energy sources, chemicals, machinery equipment, and materials.

Effective August 28, 2007, Senate Bill 30 exempts Missouri manufacturing companies from state tax and local use tax.

The Sales/Use Tax Exemption Certificate must given to the seller by the purchase. The items listed above may be exempt if they are:

  • Used or consumed in the manufacturing, processing, compounding, mining or producing of any product; or
  • Used or consumed in the processing of recovered materials; or
  • Used or consumed in research and development related to manufacturing, processing, compounding, mining, or producing any product

Summary

Senate Bill 30, passed during the 2007 legislative session, changes the way utilities, vendors, and retailers will collect and remit taxes from manufacturers.

They will no longer collect sales/use tax or local use tax on exempt items. They will continue to collect and remit local sales tax.

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