Nebraska Revised Statutes

Neb. Rev. Stat. § 77-2701.47 (2026)

Manufacturing machinery and equipment, defined

✓ current as of July 2026
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(1) Manufacturing machinery and equipment means any machinery or equipment purchased, leased, or rented by a person engaged in the business of manufacturing for use in manufacturing, including, but not limited to:

(a) Machinery or equipment for use in manufacturing to produce, fabricate, assemble, process, finish, refine, or package tangible personal property;

(b) Machinery or equipment for use in transporting, conveying, handling, or storing by the manufacturer the raw materials or components to be used in manufacturing or the products produced by the manufacturer;

(c) Molds and dies and the materials necessary to create molds and dies for use in manufacturing that determine the physical characteristics of the finished product or its packaging material, whether or not such molds or dies are permanent or temporary in nature, and including any chemicals, solutions, or catalysts utilized in the mold or die process even if such items are consumed during the course of the mold or die process;

(d) Machinery or equipment for use in manufacturing to maintain the integrity of the product or to maintain unique environmental conditions required for either the product or the machinery and equipment used in manufacturing by a manufacturer;

(e) Testing equipment for use in manufacturing to measure the quality of the finished product;

(f) Computers, software, and related peripheral equipment for use in manufacturing to guide, control, operate, or measure the manufacturing process;

(g) Machinery or equipment for use in manufacturing to produce steam, electricity, or chemical catalysts and solutions that are essential to the manufacturing process even if such produced items are consumed during the course of the manufacturing process or do not become necessary or integral parts of the finished product; and

(h) A repair or replacement part or accessory purchased for use in maintaining, repairing, or refurbishing machinery and equipment used in manufacturing.

(2) Manufacturing machinery and equipment does not include: Vehicles required to be registered for operation on the roads and highways of this state; hand tools; office equipment; and computers, software, and related peripheral equipment not used in guiding, controlling, operating, or measuring of the manufacturing process. Machinery or equipment does not need to come into direct physical contact with any of the raw materials, components, or products that are part of the manufacturing process to be considered manufacturing machinery or equipment.

Notes of Decisions
Cited in 4 cases, 2009–2020 · leading case: Kerford Limestone Co. v. Nebraska Dept. of Rev., 287 Neb. 653 (Neb. 2014).
Kerford Limestone Co. v. Nebraska Dept. of Rev., 287 Neb. 653 (Neb. 2014). · cites it 50× “Kerford purchased a motor grader for use in its manufacturing business and claimed an exemption from sales and use tax on the purchase under Neb. Rev. Stat. § 77-2704.22 (Reissue 2009).”
Ash Grove Cement Co. v. Nebraska Dept. of Rev., 306 Neb. 947 (Neb. 2020). · cites it 10× “While the dispute between Ash Grove and the Department over the scope of the NAA project was pending, Lyman-Richey filed claims for over- payment of sales and use tax for 2011 based on Nebraska’s manufacturing machinery and equipment exemption under Neb. Rev. Stat. §§ 77-2701.47…”
Stewart v. Nebraska Dept. of Rev., 885 N.W.2d 723 (Neb. 2016). “18 § 77-2701.47(1) (Supp. 2005). 19 Kerford Limestone Co.”
Concrete Indus., Inc. v. Ne Dept. of Revenue, 766 N.W.2d 103 (Neb. 2009). · cites it 11× “REVERSED AND REMANDED FOR FURTHER PROCEEDINGS. WRIGHT, J.”
— Neb. Rev. Stat. § 77-2701.47(1) — 4 cases
Kerford Limestone Co. v. Nebraska Dept. of Rev., 287 Neb. 653 (Neb. 2014). “Kerford purchased a motor grader for use in its manufacturing business and claimed an exemption from sales and use tax on the purchase under Neb. Rev. Stat. § 77-2704.22 (Reissue 2009).”
Stewart v. Nebraska Dept. of Rev., 885 N.W.2d 723 (Neb. 2016). “18 § 77-2701.47(1) (Supp. 2005). 19 Kerford Limestone Co.”
Ash Grove Cement Co. v. Nebraska Dept. of Rev., 306 Neb. 947 (Neb. 2020). “While the dispute between Ash Grove and the Department over the scope of the NAA project was pending, Lyman-Richey filed claims for over- payment of sales and use tax for 2011 based on Nebraska’s manufacturing machinery and equipment exemption under Neb. Rev. Stat. §§ 77-2701.47…”
Concrete Indus., Inc. v. Ne Dept. of Revenue, 766 N.W.2d 103 (Neb. 2009). “REVERSED AND REMANDED FOR FURTHER PROCEEDINGS. WRIGHT, J.”
— Neb. Rev. Stat. § 77-2701.47(1)(a) — 1 case
Ash Grove Cement Co. v. Nebraska Dept. of Rev., 306 Neb. 947 (Neb. 2020). “While the dispute between Ash Grove and the Department over the scope of the NAA project was pending, Lyman-Richey filed claims for over- payment of sales and use tax for 2011 based on Nebraska’s manufacturing machinery and equipment exemption under Neb. Rev. Stat. §§ 77-2701.47…”
— Neb. Rev. Stat. § 77-2701.47(1)(b) — 2 cases
Ash Grove Cement Co. v. Nebraska Dept. of Rev., 306 Neb. 947 (Neb. 2020). “While the dispute between Ash Grove and the Department over the scope of the NAA project was pending, Lyman-Richey filed claims for over- payment of sales and use tax for 2011 based on Nebraska’s manufacturing machinery and equipment exemption under Neb. Rev. Stat. §§ 77-2701.47…”
Kerford Limestone Co. v. Nebraska Dept. of Rev., 287 Neb. 653 (Neb. 2014). “Kerford purchased a motor grader for use in its manufacturing business and claimed an exemption from sales and use tax on the purchase under Neb. Rev. Stat. § 77-2704.22 (Reissue 2009).”
— Neb. Rev. Stat. § 77-2701.47(1)(c) — 1 case
Concrete Indus., Inc. v. Ne Dept. of Revenue, 766 N.W.2d 103 (Neb. 2009). “REVERSED AND REMANDED FOR FURTHER PROCEEDINGS. WRIGHT, J.”
— Neb. Rev. Stat. § 77-2701.47(1)(d) — 1 case
Kerford Limestone Co. v. Nebraska Dept. of Rev., 287 Neb. 653 (Neb. 2014). “Kerford purchased a motor grader for use in its manufacturing business and claimed an exemption from sales and use tax on the purchase under Neb. Rev. Stat. § 77-2704.22 (Reissue 2009).”
— Neb. Rev. Stat. § 77-2701.47(1)(h) — 1 case
Concrete Indus., Inc. v. Ne Dept. of Revenue, 766 N.W.2d 103 (Neb. 2009). “REVERSED AND REMANDED FOR FURTHER PROCEEDINGS. WRIGHT, J.”
— Neb. Rev. Stat. § 77-2701.47(2) — 1 case
Kerford Limestone Co. v. Nebraska Dept. of Rev., 287 Neb. 653 (Neb. 2014). “Kerford purchased a motor grader for use in its manufacturing business and claimed an exemption from sales and use tax on the purchase under Neb. Rev. Stat. § 77-2704.22 (Reissue 2009).”
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