TO AMEND THE SALES AND USE TAX EXEMPTIONS FOR CERTAIN MACHINERY AND EQUIPMENT USED IN MANUFACTURING; AND TO PROVIDE A SALES AND USE TAX EXEMPTION FOR MACHINERY AND EQUIPMENT USED IN CLOSED-LOOP RECYCLING.

Fiscal Impact Statement Bill: HB1702 Bill Subtitle: TO AMEND THE SALES AND USE TAX EXEMPTIONS FOR CERTAIN MACHINERY AND EQUIPMENT USED IN MANUFACTURING; AND TO PROVIDE A SALES AND USE TAX EXEMPTION FOR MACHINERY AND EQUIPMENT USED IN CLOSED-LOOP RECYCLING. --------------------------------------------------------------------------------------------------------------------------------------- Sponsors: Rep. Wooldridge and Sen. Petty Basic Change: HB1702 expands the sales and use tax exemption for manufacturing machinery and equipment to include machinery and equipment used to mechanically recycle post-use materials in a closed-loop circular process. A closed-loop circular process is a manufacturing process in which reclaimed post-use materials are converted and reintroduced into the original process and become a recognized component of the finished product. "Post-use material" is material that is: • Generated and reclaimed directly from the taxpayer's manufacturing process; • Managed as an item of value; • Intended to be mechanically recycled for use in the manufacturing process; • Not post-consumer waste; and • Not commingled with solid waste or hazardous waste onsite or during proce