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        Illinois Department of Revenue

        ST-16-C                                           Manufacturer’s Purchase Credit Certificate
                                                          for production-related tangible personal property

 Purchaser and seller: Complete this certificate together. The seller should keep the top portion and use this information to complete Line 16a 
 of Form ST-1, Sales and Use Tax and E911 Surcharge Return; the purchaser should keep the bottom portion and use this information to 
 complete Form ST-17, Annual Report of Manufacturer’s Purchase Credit Used. Do not attach this certificate to any form. 

 Seller’s portion
 Purchaser’s business name:                     __________________________________________________________________________________
 Purchaser’s business address:  __________________________________________________________________________________
                                                Number and street                                                                                                      City                                 State                 ZIP 
 A Date of purchase                                                                                                                                                   A  _________/_________/_________
                                                                                                                                                                                Month                       Day                   Year
 B  Purchaser’s account ID number                                                                                                                                     B ___  ___  ___  ___—___  ___  ___  ___ 

 C   Taxable selling price of this purchase                                                                                                                           C  $______________________________
 D   Sales or use tax due - Multiply Line C by the seller's tax rate. 
   Note: If the seller is not registered, multiply Line C by 6.25% (.0625).                                                                                           D  $______________________________

 E   Amount of MPC being used (cannot be greater than 6.25 percent of Line C)                                                                                         E  $______________________________
 F   Remaining tax due - Line D minus Line E. If the amount on this line is greater than
   zero, this is the tax amount the purchaser owes you. If you are using the credit towards 
   self-assessed state use tax or service use tax, this is the tax amount you must pay on 
   your Form ST-1, Sales and Use Tax and E911 Surcharge Return.                                                                                                       F  $______________________________
 I certify that I have Manufacturer’s Purchase Credit and I am using it to satisfy all or part of the 6.25 percent state sales or use tax liability due on this pur-
 chase of production-related tangible personal property. 
 _______________________________________________________________________                                                                                              ______________________
 Purchaser's signature                                                                                                                                                Date

        — — — — — — — — — — — — — — — CUT HERE — — — — — — — — — — — — — — 

 Purchaser's portion

 Detach and keep this portion. Use this information to complete Form ST-17, Annual Report of Manufacturer’s Purchase Credit Used. Do not 
 attach this certificate to any form. Copy all lines from the top part of this certificate except for Line B, on which you write the seller’s Account 
 ID number. 
 A Date of purchase                                                                                                                                                   A  _________/_________/_________
                                                                                                                                                                                Month                       Day                   Year
 B  Seller’s account ID number                                                                                                                                        B ___  ___  ___  ___—___  ___  ___  ___ 

 C   Taxable selling price of this purchase                                                                                                                           C  $______________________________
 D   Sales or use tax due - Multiply Line C by the seller's tax rate. 
   Note: If the seller is not registered, multiply Line C by 6.25% (.0625).                                                                                           D  $______________________________

 E   Amount of MPC being used (cannot be greater than 6.25 percent of Line C)                                                                                         E  $______________________________
 F   Remaining tax due - Line D minus Line E. If the amount on this line is greater than
   zero, this is the tax amount that you owe the seller. If you are using the credit towards 
   self-assessed state use tax or service use tax, this is the tax amount you must pay on 
   your Form ST-1, Sales and Use Tax and E911 Surcharge Return.                                                                                                       F  $______________________________

                                        This form is authorized as outlined under the tax or fee Act imposing the tax or fee for which this form is filed. Disclosure of this 
                                        information is required. Failure to provide information may result in this form not being processed and may result in a penalty. 
 ST-16-C (R-09/14)
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General Information Instructions for Form ST-16-C
Manufacturer's Purchase Credit (MPC) may be earned for Purchasers — You must complete and give the top part of Form
tax-exempt purchases of manufacturing or graphic arts machinery ST-16-C (or equivalent certificate) to the registered seller to certify
and equipment. The MPC is equal to 50 percent of the 6.25 percent that you have MPC to apply towards the 6.25 percent state sales or
state tax that would have been owed if the purchase were not use tax liability on the purchase. You must pay any locally imposed
otherwise exempt. taxes (e.g., home rule, mass transit) directly to the supplier. If you
Note: After August 30, 2014, you can no longer earn Manufacturer's overstate your credit, you will be subject to tax, penalty, and interest
Purchase Credit on purchases of tax-exempt manufacturing or charges.
graphic arts machinery and equipment. However, Manufacturer's Keep the bottom part of this certificate to use when you complete
Purchase Credit earned on or before that date, if properly reported, Form ST-17, Annual Report of Manufacturer’s Purchase Credit Used.
may be used through December 31, 2016. Do not attach this certificate to any form.
MPC may be applied toward state sales or use tax on future Note: If you are using Manufacturer’s Purchase Credit towards the
purchases of production-related tangible personal property. This state use or service use tax you owe on qualifying purchases from
production-related tangible personal property includes tangible out-of-state sellers not registered in Illinois, you may complete and
personal property keep this certificate to document your use of the credit. Use the
• incorporated into real estate within a manufacturing or graphic arts information from this certificate to complete Line 16a of your Form
facility; ST-1, Sales and Use Tax and E911 Surcharge Return, to reduce the
• used or consumed in activities such as preproduction amount of use tax you owe when you report the purchase.
material-handling, receiving, quality control, inventory control, Sellers — Your customer must give you the top part of Form
storage, staging, and packaging for shipping and transportation ST-16-C or an equivalent certificate to use MPC. You must give the
purposes; purchaser your account ID number so that the bottom part of this
• used or consumed by the purchaser for research and certificate can be completed and to provide documentation in the
development. purchaser’s books and records.
MPC may not be transferred to another party. Use the information from this certificate to complete Line 16a of
To report the amount of MPC earned, purchasers must complete your Form ST-1, Sales and Use Tax and E911 Surcharge Return, to
and file Form ST-16, Annual Report of Manufacturer’s Purchase reduce the amount of tax you owe when you report the sale.
Credit Earned, no later than June 30 of the year following Do not attach this certificate to any form. You must keep this
the calendar year in which the original purchase of exempt certificate in your records to document the use of the credit by your
manufacturing or graphic arts machinery and equipment was made. customer or, when appropriate, by yourself.
If Form ST-16 is not filed within this period, the MPC is forfeited.
All unused MPC expires the last day of the second calendar year Where can I get help?
following the year in which the purchase was made. You may get help by visiting our website at tax.illinois.gov or
To report the amount of MPC used, purchasers must complete and calling weekdays between 8 a.m. and 5 p.m. at 1 800 732-8866 or
file Form ST-17, Annual Report of Manufacturer's Purchase Credit 217 782-3336. Call 1 800 544-5304, our TDD (telecommunications
Used, no later than June 30 of the year following the calendar year in device for the deaf).
which the credit was used.

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