Sales and Use Tax Exemption For Fuel and Electricity Used in Manufacturing

The sale of fuel and electricity consumed in the process of manufacturing tangible personal property is exempt from sales and use tax. To claim the exemption, manufacturers must provide a fully completed Wisconsin Sales and Use Tax Exemption Certificate (Form S-211 or S-211E) to the supplier of the fuel and/or electricity. It may be necessary for the manufacturer to make a proration of the fuel and electricity used and claim exemption from tax on the percentage that is exempt.

Fuel and electricity consumed in manufacturing means only the fuel and electricity used to operate the machinery and equipment that is used directly in the step-by-step manufacturing process. Fuel and electricity used in providing plant heating, cooling, air conditioning, communications, lighting, safety and fire prevention, research and product development, receiving, storage, sales, distribution, warehousing, shipping, or advertising or administrative department activities does not qualify for exemption.

May 8, 2019