Tax Exempt and Energy

In Pennsylvania, certain items and transactions are exempt from state sales tax. These exemptions can vary based on the type of item being purchased, the nature of the transaction, and the entities involved. Here are some common sales tax exemptions in Pennsylvania.

Nonprofit organizations: Purchases made by qualified nonprofit organizations may be exempt from Pennsylvania sales tax if the items purchased are for the organization's exempt purposes. Nonprofit organizations must provide proof of their tax-exempt status to claim this exemption.

Manufacturing and production equipment: Machinery, equipment, and supplies used directly in manufacturing or production processes may be exempt from Pennsylvania sales tax. This exemption aims to encourage investment and growth in the manufacturing sector.

Energy purchases: In some cases, purchases of electricity, natural gas, and heating fuels for residential use may be exempt from Pennsylvania sales tax. However, exemptions for energy purchases can vary based on factors such as income level, usage, and eligibility for assistance programs.

Government entities: Certain purchases made by government entities, including federal, state, and local governments, may be exempt from Pennsylvania sales tax. Government agencies typically need to provide proof of their tax-exempt status when making purchases.