Pennsylvania Statutes Title 53 P.S. Municipal and Quasi-Municipal Corporations § 18200.511. Sales and use tax

(a) Exemption.--Sales at retail of services or tangible personal property, other than motor vehicles, to a qualified business for the exclusive use, consumption and utilization of the tangible personal property or service by the qualified business at its facility located within an economic development district are exempt from the sales and use tax imposed under Article II of the Tax Reform Code of 1971.  No exemption shall be allowed for activities conducted on the real property prior to designation of the real property as an economic development district.

(b) Construction contracts.--For a construction contract performed in an economic development district, the exemption provided in subsection (a) shall only apply to the sale at retail of building machinery and equipment to a qualified business, or to a construction contractor pursuant to a construction contract with a qualified business, for the exclusive use, consumption and utilization by the qualified business at its facility located within the economic development district.  For the purposes of this subsection, building machinery and equipment shall include distribution equipment purchased for the exclusive use, consumption and utilization by the qualified business at its facility located within the economic development district.