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Research and Development Sales Tax Exemption

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Ohio Department of Taxation, Sales Tax Division (888) 405-4039

The Research and Development Sales Tax Exemption exempts business from the entire state and county sales tax for purchases of qualified machinery and equipment used primarily for research and development. This exemption provides significant savings for companies undertaking research and development activities in Ohio.

The exemption applies to machinery and equipment included in research and development activity in both direct and pure research. Direct research refers to research conducted to design, create or formulate new or better products, equipment or processes. Pure research refers to scientific or technological inquiry and experimentation in the physical sciences.

To receive the tax exemption, the purchaser/vendor must complete an Ohio Department of Taxation Sales and Use Tax Blanket Exemption Certificate.