• Be used in Colorado
• Be used directly and predominantly to manufacture tangible personal property for sale or profit. (If the item is used for research and development, repair or maintenance, it does not qualify as direct manufacturing use, and if these uses prevent the machine from being predominantly used in manufacturing, the machine is disqualified.)
• Be of a nature that would have qualified for the federal investment tax credit under the definition of section 38 property found in the Internal Revenue Code of 1954, as amended in 1986. This includes tangible personal property with a useful life of one year or more and limits qualifying purchases of used equipment to a maximum of $150,000 annually,
• Be included on a purchase order or invoice totaling more than $500,

"Machinery" means any apparatus consisting of interrelated parts used to produce an article of tangible personal property. The term includes both the basic unit and any adjunct or attachment necessary for the basic unit to accomplish its intended function.

"Manufacturing" means the operation of producing an item of tangible personal property different from and having a distinctive name, character, or use from raw materials.