What qualifies for certification:
1. Can engineering fees and permit costs for qualified machinery and equipment be included?
For real property valuation purposes, Department of Revenue includes all of the costs incurred to make the machinery and equipment functional. So, engineering fees, freight, wiring, foundations, installation, and county permit fees associated with installation can all be included.
2. Can leased machinery or equipment that has been bought out in the last year be certified?
The Dept. of Revenue rules refer to machinery and equipment "newly acquired" and “newly placed into service”. Newly acquired means new or used M&E that is first purchased or leased by a food processor not more than two years (24 months) prior to placing it into service. Leased equipment may be exempt only if the food processor is responsible for the payment of the property taxes under the terms of the lease agreement. Newly acquired property does not include existing equipment that has been refurbished or reconditioned in the time frame provided by this rule.
3. Does an air exchanger or a fan system used to cool a building qualify for certification?
No, these are not examples of primary processing equipment.
4. Can new equipment in the wastewater system qualify?
Yes- For example, the wastewater system does qualify if removing onion solids from the wastewater before irrigation is the final step in the onion process.
5. Can a dehumidifier in a raw produce storage warehouse qualify?
No, while the dehumidifier provides the atmosphere that allows for the storage of the raw produce, it is integral to the building rather than the process.
6. If the new processing line needed catwalks, do the catwalks qualify?
Yes, as long as the catwalks were installed along with the new equipment and the machinery could not operate without them. If catwalks are installed at the same time as the new equipment, but they are integral to the building and not necessary for the process, than the catwalks are not eligible.
7. Does a new section of roof qualify if it was installed to support a new air condenser?
No, this is considered part of a building and is not deemed equipment.
8. If the insides of the tubes on an aseptic fill line are replaced, does this qualify?
No, this is considered an upgrade and/or regular maintenance.
9. If filling tubes on an aseptic fill line are replaced, does this qualify?
Yes, if whole sections of the line are literally removed and replaced with improved tubes that allow for more capacity.
10. Does machinery and equipment used for research and development qualify?
11. Do video jet machines that code the finished product qualify?
Yes, as long as the video jet machines are on lines that do primary processing of fruits, vegetables, nuts, legumes, or seafood.
12. Does the stove in the QA lab that dries the samples for testing qualify?
Yes, if the stove is used to control or test a process in real time. Equipment used to test a food product where the results are post processing will not qualify.
13. Does the computer in the lab that runs statistics for the processing line qualify?
Yes, it if is used to in real time to control the line.
14. Does the computer in the lab that maintains files for the QA lab qualify?
15. Does the computer associated with the equipment on the primary processing line qualify?
Yes, if it is used to set up or run the equipment.
16. Does the new server that updates communications to the production staff qualify?
17. Does the new metal detector on the packaging line qualify?
Yes, as long as it is on a line that does primary processing.
18. Does a new IQF tunnel qualify?
Yes, if part of the primary process is to send the product through the IQF tunnel.
19. Do new belts on an existing inspection line qualify?
No, this is considered maintenance.
20. If old conveyor lines and belts are removed and everything is replaced, does this qualify?
21. Does air conditioning in the electrical/computer housing room qualify?
If the air conditioning is required to prevent the processing line from stopping due to over heating, then yes it qualifies. If the air conditioning is required for the comfort of the employees, then it does not qualify.
22. Does an ammonia detector qualify if it is required by OSHA?
No, this would not be considered primary processing equipment.
23. If an existing blancher is broadened and lengthened to increase capacity, does this qualify?
No, this is considered a modification to existing equipment.
24. If machinery and equipment is fabricated on site, can it qualify?
Yes, if it is newly installed and involved in primary food processing for qualifying foods.
25. If a new overhead door is installed to keep pests and insects out, does this qualify?
No, an overhead door is integral to the building, not the process.