Nebraska: Sales Tax Handbook

Nebraska:

Are Manufacturing and Machinery subject to sales tax?

While Nebraska's sales tax generally applies to most transactions, certain items have special treatment in many states when it comes to sales taxes. This page describes the taxability of manufacturing and machinery in Nebraska, including machinery, raw materials and utilities & fuel. To learn more, see a full list of taxable and tax-exempt items in Nebraska.

Machinery

EXEMPT

In the state of Nebraska, the exemption does include repair and replacement parts in addition to any purchases of installation, repair, or maintenance services which has been performed on machinery which is considered to be exempt.

Raw Materials

EXEMPT

Sales of raw materials are exempt from the sales tax in Nebraska.

Utilities & Fuel

EXEMPT

In the state of Nebraska, any electricity, gas, coal, corn and wood which is utilized as fuel, fuel oil, diesel fuel, propane, gasoline, coke, nuclear fuel, and butane are considered to be exempt so long as more than 50% of the amount which has been purchased is used directly in the processing, manufacturing, or refining.

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