If you purchase machinery and/or equipment for the primary purpose of reducing or eliminating air or water pollution, this machinery and/or equipment may be exempt from Georgia sales and use tax. If you have purchased, or plan to purchase, machinery and/or equipment that reduces or eliminates air pollution, then phone the Department of Revenue at (404) 656-4060 and ask them to send you exemption application Form ST-M7. Complete the form and return it to them for an exemption decision. If you need help with either the form or other tax questions, phone the Department of Revenue at (404) 656-4060. Someone will be glad to help you. The Department of Revenue wants to help you get your equipment approved for exemption.

It is preferable obtain to your tax exemption before you purchase the equipment. However, if you have already purchased pollution control equipment, you may still qualify for an exemption if the equipment is less than three years old.

Your pollution control equipment may also be exempt from ad valorem property taxes if the Department of Natural Resources has certified the equipment as needed and adequate to reduce or eliminate air or water pollution. Write the Director of the Environmental Protection Division and request a certification of property tax exemption. Your request should include a description of the equipment, how it is used so pollution is eliminated or reduced, and the cost of the equipment. It would be helpful if you can include a copy of the Department of Revenue's Certification ST-M8 or a copy of your application for exemption Form ST-M7 with your request.

We at the Small Business Assistance Program will be glad to help you with any questions you may have about these potential tax exemptions. Phone us toll-free at 1- 877-427-6255 or call (404) 362-4842 if you are in the Atlanta area.