50-State Advanced Manufacturing & Defense Machining Laws

State-by-state CNC machinery & equipment (M&E) sales tax exemptions, ITAR defense manufacturing grant programs, and aerospace AS9100 R&D tax credits.

State Machinery & Equipment (M&E) Sales Tax Exemption Defense & Aerospace Manufacturing Incentives ITAR / DFARS Compliance Mandate Manufacturing R&D Tax Credit
Alabama100% Exemption on Industrial CNC MachineryHuntsville Defense Corridor GrantsDFARS 252.204-7012 MandateUp to 20% Qualified Research Credit
AlaskaNo Statewide Sales Tax on CNC EquipmentAlaska Aerospace Corp Sub-AwardsNIST SP 800-171 CybersecurityState R&D Credit
Arizona100% M&E Sales Tax Exemption (§ 42-5061)AZ Commerce Authority Defense GrantsITAR Directorate of Defense Controls24% State R&D Tax Credit
Arkansas100% Tax Exemption on New Machine ToolingAerospace & Defense Industry IncentivesDFARS Domestic Melt ClauseUp to 33% Research Credit
CaliforniaPartial Sales Tax Exemption (3.9125% State Rate)CalCompetes Aerospace Manufacturing CreditsITAR / CMMC Level 2 Audit15% Research & Development Credit
Colorado100% State Sales Tax Exemption on MachineryColorado Space & Defense Coalition CreditsNIST SP 800-171 Defense RulesEnterprise Zone R&D Credits
Connecticut100% Exemption on Manufacturing MachineryCT Manufacturing Innovation Fund (MIF)AS9100 Rev D Aerospace Mandate6% General R&D Credit
DelawareNo Statewide Sales Tax on CNC MachineryDelaware Innovation Defense GrantsITAR Export Control ComplianceState Research Tax Credit
Florida100% Permanent Sales Tax Exemption (§ 212.08)Space Coast & Defense Target Industry GrantsDFARS 252.204 Cyber ComplianceQualified Defense R&D Credit
Georgia100% Sales Tax Exemption on CNC ToolingGeorgia Defense Sub-Contractor CreditsITAR Registration & AuditsJob Tax & R&D Credits
HawaiiGeneral Excise Tax Exemption on M&EHawaii Technology Development Corp GrantsNIST SP 800-171 Standards20% High-Tech R&D Tax Credit
Idaho100% Production Exemption on CNC MachineryIdaho Strategic Defense GrantsITAR / EAR Defense Regulations5% Research Tax Credit
Illinois100% Manufacturing Machinery & Equipment ExemptionIllinois EDGE Defense Manufacturing CreditsDFARS Cyber Safeguarding6.5% R&D Tax Credit
Indiana100% Sales Tax Exemption on Direct Production CNCIndiana 21st Century Research & Defense FundITAR Security Protocols15% R&D Credit (Up to $1M)
Iowa100% Exemption on Industrial Processing MachinesIowa High Quality Jobs Defense Tax CreditAS9100 Quality Verification6.5% Refundable R&D Credit
Kansas100% Sales Tax Exemption on Industrial MachineryWichita Aerospace Supply Chain GrantsITAR / AS9100 Rev D Mandate6.5% Research Tax Credit
Kentucky100% Exemption on Industrial Machine ToolingKentucky Business Investment Defense GrantsDFARS NIST 800-171 Rules5% Qualified R&D Credit
Louisiana100% Sales Tax Exemption on Manufacturing MachineryLouisiana Industrial Tax Exemption (ITEP)ITAR Defense Security StandardsUp to 30% Research Credit
Maine100% Sales Tax Exemption on CNC EquipmentMaine Technology Defense GrantsNIST SP 800-171 Compliance5% Research Expense Credit
Maryland100% Exemption on Manufacturing Capital AssetsMaryland Defense Supplier DiversificationITAR / CMMC Level 2 ComplianceUp to $250k Basic R&D Credit
Massachusetts100% Sales Tax Exemption (§ 6(s) Chapter 64H)MassTech Manufacturing Defense Sub-GrantsAS9100 Aerospace Compliance10% Research & Development Credit
Michigan100% Industrial Processing Sales Tax ExemptionMichigan Defense Center (MEDC) GrantsITAR / DFARS 252.204-7012State Advanced Tooling Credits
Minnesota100% Capital Equipment Sales Tax ExemptionMinnesota Job Creation Defense CreditsNIST SP 800-171 Standards10% Research Tax Credit
Mississippi1.5% Reduced Rate on Industrial CNC MachineryMississippi Aerospace Initiative IncentivesITAR Registration & ControlsR&D Expense Tax Credit
Missouri100% Sales Tax Exemption on Direct MachineryMissouri Defense Supply Chain GrantsDFARS Cyber Requirements15% Research Tax Credit
MontanaNo Statewide Sales Tax on CNC EquipmentMontana Innovation Defense CreditsITAR / EAR RegulationsState R&D Credits
Nebraska100% M&E Sales Tax Exemption (LB 775/Imagine)Nebraska Defense Manufacturing IncentivesAS9100 Aerospace Standards15% Research Tax Credit
NevadaPartial Abatement of Sales Taxes on CNC CapitalNevada GOED Aerospace & Defense AbatementsITAR Security ProtocolsCapital Investment Abatement
New HampshireNo Statewide Sales Tax on Industrial ToolingNH Aerospace & Defense Export InitiativeNIST SP 800-171 Rules10% R&D Tax Credit
New Jersey100% Sales Tax Exemption on Production EquipmentNJEDA Defense Manufacturing Sub-GrantsITAR / CMMC Cybersecurity10% Research Tax Credit
New Mexico100% Investment Tax Credit for CNC MachineryNM Space Valley & Defense Research GrantsDFARS 252.204 Standards5% Technology R&D Credit
New York100% Sales Tax Exemption on Production MachineryEmpire State Defense Supply Chain GrantsAS9100 Rev D Aerospace Mandate6% Excelsior R&D Tax Credit
North Carolina100% Sales Tax Exemption on Mill MachineryNC Defense Technology Transition NetworkITAR Directorate ControlsJob Development R&D Grants
North Dakota100% Sales Tax Exemption on Primary MachineryND Automation & Defense Tax CreditsNIST SP 800-171 StandardsUp to 25% Research Credit
Ohio100% Sales Tax Exemption on Manufacturing CNCOhio Defense Manufacturing Network GrantsITAR / DFARS Compliance7% Non-Refundable R&D Credit
Oklahoma100% Sales Tax Exemption on Industrial ToolingOklahoma Aerospace Defense Hub CreditsAS9100 Quality Verification10% Research & Development Credit
OregonNo Statewide Sales Tax on CNC MachineryOregon Innovation Council Defense GrantsITAR Security StandardsState Research Tax Credit
Pennsylvania100% Sales Tax Exemption on Direct ProcessingPA Defense Supplier Development GrantsNIST SP 800-171 Cyber Rules10% Qualified R&D Credit
Rhode Island100% Sales Tax Exemption on Machine ToolingRI Undersea Defense Supply Chain CreditsITAR / EAR Defense Standards22.5% Research Tax Credit
South Carolina100% Sales Tax Exemption on Industrial MachinerySC Aerospace Manufacturing Tax IncentivesDFARS Cyber Safeguarding5% Research Tax Credit
South DakotaNo State Corporate Income Tax / M&E RebatesSD Reinvestment Defense GrantsITAR Security ControlsState Capital Rebates
Tennessee100% Industrial Machinery Sales Tax ExemptionFastTrack Defense Infrastructure GrantsITAR / AS9100 Rev D MandateCredit against Franchise Tax
Texas100% Sales & Use Tax Exemption on CNC ToolingTexas Enterprise Fund Aerospace & Defense GrantsITAR / CMMC Level 2 Compliance5% R&D Franchise Tax Credit
Utah100% Sales Tax Exemption on Manufacturing CapitalUtah Falcon Hill Defense Corridor IncentivesDFARS 252.204-7012 Mandate5% Research Tax Credit
Vermont100% Sales Tax Exemption on Manufacturing CNCVermont Defense Manufacturing GrantsNIST SP 800-171 Rules27% Research Expense Credit
Virginia100% Sales Tax Exemption on Industrial MachineryVirginia Defense Production Zone GrantsITAR / CMMC National Security15% Research Tax Credit
Washington100% Sales Tax Exemption on M&E (§ 82.08.02565)Washington Aerospace B&O Tax Preferential RatesAS9100 Rev D Aerospace MandateCommercial Airplane B&O Credit
West Virginia100% Sales Tax Exemption on Manufacturing ToolingWV Defense Industry Tax CreditsITAR / EAR Regulations3% Research Expense Credit
Wisconsin100% Manufacturing & Agriculture Credit (MAC)Wisconsin Aerospace Defense Supplier GrantsDFARS Cyber Safeguards11.5% State R&D Credit
Wyoming100% Manufacturing Machinery Sales Tax ExemptionWyoming Defense Innovation GrantsITAR Security ProtocolsCapital Investment Exemption