Sales/use tax exemption for purchases of semiconductor gases & chemicals

Available to

Manufacturers or processors for hire of semiconductor materials.

Qualifying activity

Purchasing gases and chemicals in the production of semiconductor materials. For purposes of the sales/use tax exemption “Semiconductor materials" means silicon crystals, silicon ingots, solar grade silicon, raw polished semiconductor wafers, compound semiconductor wafers, silicon solar wafers, silicon solar cells, thin film solar devices, or compound semiconductor solar wafers.

Reporting/documentation

• Buyer's Retail Sales Tax Exemption Certificate provided to vendor.
• Buyer's Sales and Use Tax Preference Addendum completed in My DOR when filing tax return.
• Annual Tax Performance Report filed by May 31 of the following year.
• Electronic filing of all documents required.

Employment requirement (effective Oct. 19, 2017)

You must maintain at least 90% of your employment average for the previous three years in the year you claim the tax preference, or you must repay 50% of the preference claimed. 

Expires December 1, 2028.

For questions about the exemption, call 360-705-6705.