Does the DOR treat the sale of electricity as the sale of tangible personal property, intangible personal property, or as a service for CNI Tax and CS/FF Tax purposes?
For purposes of the capital stock franchise tax manufacturing exemption, the Commonwealth Court in The Potomac Edison Company v. Commonwealth, 50 Commw. CT. 1 (1980), held that making electricity was not manufacturing. For purposes of sourcing sales for apportionment purposes, it is the Department’s position that the sale of electricity more closely resembles the sale of a saleable commodity, than it does a service, and the use of the intangible provisions of 72 P.S. §7401(a)(17) is inappropriate.