(1) In order to qualify as new industrial property, the property in question must be used by the new firm in a qualifying activity at all times during the three-year exemption period. Land held for future use or for nonindustrial use is excluded from classification as new industrial property. Only property used directly in the qualifying activity may qualify. Property used in a supplementary fashion, such as a housing development in conjunction with an industrial plant, does not qualify.

(2) Raw materials, in-process, and finished product "business inventories" are not considered new industrial property and are exempt from property taxation under 15-6-202 , MCA. Similarly, all materials, supplies, and merchandise held for sale or used by a new industrial plant are not considered to be new industrial property.

�