New Streamlined Exemption Certificate Procedure for Tax-Exempt Construction Projects – How It’s Working So Far

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A discussion about the new streamlined process for applying for a project-specific exemption certificate was presented to BMSS in a memo written by Bradley Partners, Bruce P. Ely and James E. Long, Jr. based on their experience with all parties to a major construction project for an institution that is statutorily exempt from Alabama sales and use tax but is not classified as a government entity. As you may be aware, there were different rules for governmental entities versus non-governmental entities.

Effective for construction contracts entered into on or after January 1, 2024 (no grandfathering), Act 2023-526 extends the same project-specific exemption certificate procedure to construction contracts on behalf of all entities that have a statutory exemption from sales and use taxes. To read the memo in full and access a copy of the form and instructions, click here.

About BMSS

BMSS Advisors & CPAs was established in 1991 with the vision of creating a CPA firm that would provide peace of mind for its clients while sustaining a healthy, happy culture for its employees. As this dream has been realized, BMSS has grown to become one of the Southeast’s top advisory and accounting firms, now with eight offices throughout Alabama and Mississippi.

The CPA firm specializes in several industries, including (but not limited to) manufacturing, wholesale distribution, construction, technology, nonprofit, and government contracting. In addition to tax planning, compliance and assurance services, the firm boasts a robust business advisory practice area which includes transaction advisory, valuation, client accounting solutions, and CFO advisory services. BMSS also specializes in state and local tax, estate planning and employee benefit plan audits.

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