Manufacturer's Purchase Credit (MPC)

Statutory References

Definition

Beginning September 1, 2004, qualifying manufacturers may earn a Manufacturer's Purchase Credit (MPC). The MPC is earned when a manufacturer purchases manufacturing or graphic arts machinery and equipment that qualifies for the existing sales/use tax exemptions. MPC may be used to pay state sales or use tax on future purchases of qualifying production-related tangible personal property.

All unused MPC expires the last day of the second calendar year following the year in which the original tax-exempt purchase was made. MPC may not be transferred to another party.

Credit

The MPC is equal to half of the 6.25% state tax that would have been owed if the purchase was not otherwise exempt.

Forms/Filing Requirements

Questions?

Call us at: 1 800 732-8866 or 1 217 782-3336
Call TDD: 1 800 544-5304
Mail your ST-16, ST-16-X, ST-17, & ST-17-X forms to:
Sales Tax Processing Division
Illinois Department of Revenue
P.O. Box 19034
Springfield, Illinois 62794-9034