Exemptions from tax — Manufacturing exemption — Specific businesses — Egg processors and poultry processors

# (a) Egg processors

(a) Egg processors. The following machinery and equipment purchased and used by egg processors constitutes machinery and equipment used directly in processing eggs:

(1) Machinery and equipment used in the washing, grading, candling, and packaging of eggs;

(2) Conveyor systems used to convey eggs during the process;

(3) Forklift trucks used to transport eggs during the process; and

(4) Egg wire baskets used to transport eggs to retailers.

# (b) Egg processors — Nonexempt

(b) Egg processors — Nonexempt. The following machinery and equipment purchased and used by egg processors does not qualify for the exemption:

(1) Heating, cooling, and freezing machinery and equipment and ductwork used in storage areas;

(2) Forklift trucks used to transport packaged eggs to the storage area; and

(3) Machinery and equipment used for washing the egg processing equipment.

(c) In all events, the machinery and equipment purchased and used by egg processors must satisfy the requirements of 26 CAR § 30-1136.

# (d) Poultry processing

(d) Poultry processing. The following machinery and equipment purchased and used by poultry processors constitutes machinery and equipment used directly in poultry processing:

(1) Live poultry dumping system;

(2) Machinery and equipment used directly in the poultry processing operation from the point the birds are killed through the packaging of the finished product, including “quick freeze” processing and shackle washing systems, and ice maker systems;

(3) Pneumatic air compressors for the operation of machinery and equipment referred to in subdivision (d)(1) of this section, above, and air compressor dryers;

(4) Forklift trucks and conveyor systems used exclusively in actual processing at any point from the time the birds are killed until packaging;

(5) Cooking vats, cooking equipment, cutting and packaging machinery, and pneumatic and electrical machinery used directly in the process of cooking poultry; and

(6) Quality control devices on line used to test each unit produced.

# (e) Poultry processing — Nonexempt

(e) Poultry processing — Nonexempt. The following machinery and equipment purchased and used by poultry processors does not qualify for the exemption:

(1) Heating, cooling, and freezing machinery, equipment, and ductwork used in storage areas;

(2) Forklift trucks used in storage area; and

(3) Storage racks used in the storage area.

(f) In all events, the machinery and equipment purchased and used by poultry processors must satisfy the requirements of 26 CAR § 30-1136.