Investing in new forklifts is a huge expense for most warehouses, and maintaining and repairing the machines is also costly. However, one way to save is by taking advantage of sales and use tax exemptions. It’s important to understand each state’s qualifications in order to receive the sales tax exemption.
Today, nearly all of the incentive programs are managed at the state level. After investigating more on different types of incentive programs we found that certain states may have better incentive programs. While interstate arrangements might be difficult to create, it is possible. This will allow leverage with rebate programs, but only if you are willing to do business in other regions. The AFDC can also be of value to keep up with state environmental laws and to also determine the betterment of contrasting different kinds of fuel.
Every state has individual sales tax models and shifting incentive programs. In other words, there are sales tax incentive programs in California, Idaho, and Washington that might be suited for you in what you are trying to become more qualified for. In South Carolina, the relevance of this machine exemption varies on if the machine or sequence of mechanical powers, components, connectors, and equipment are very essential and fundamental to the manufacturing development.
You may want to ask about possible fleet enhancements, battery room infrastructure, and potential advancements that might alter your power usage. If you choose this
option, then a few of your rebates and tax incentives can undoubtedly decrease the capital costs of electric forklifts and you can begin appreciating all of the perks of fewer maintenance dilemmas, reduced fuel costs and strengthen productivity.
Also, some states may offer a partial exemption. It’s important to know a few common terms when looking into sales tax exemption. For example, “substantially” means over one-third of the time, “predominantly” means over half of the time and “exclusively” means 100 percent of the time. You, as the buyer, are solely responsible for claiming the incentives. You’re required to provide the seller with the properly completed forms claiming the sales tax exemption.
At KION North America, we understand that investing in new equipment can be expensive, so we’re here to help. If you have any further questions about how to apply for sales tax exemption, please contact our Summerville office in South Carolina at 843-875-8000. If you’re ready to purchase a new forklift, visit our website to find a local dealer.