Manufacturers have a few advantages when filing for refunds of overpaid sales or over-accrued use tax on fixed assets and expense purchases in Indiana. Every state allows for a 3-to-4-year statute of limitations for filing refunds, but Indiana is unique since its statutory period begins at the calendar year.

Every company looks to improve their bottom line and increase cash flow, but most don’t realize that savings can be found in the unlikeliest place: sales & use tax. Sales & use tax is not taught on a CPA exam; vendors charge tax unless they know otherwise, and state tax law is open to interpretation. But there is good news for manufacturers, especially in Indiana.

Indiana is not only the most amenable state for sales & use tax refunds, but it also affords area manufacturers numerous exemption opportunities. Sure, energy refunds are low-hanging fruit, but why stop there? Indiana is not only the most amenable state for sales & use tax refunds, but it also affords area manufacturers numerous exemption opportunities. Sure, energy refunds are low-hanging fruit, but why stop there?

Even seasoned manufacturers in Indiana often overpay sales tax—especially on fixed assets and everyday expense purchases. With complex rules and gray areas around items like software, R&D, and repair parts, many businesses err on the side of caution and simply pay the tax.That adds up. While medium and large manufacturers are frequent candidates.