Sec. 13. 36 MRSA §1752, sub-§9-B, as amended by PL 1997, c. 557, Pt. D, §1 and affected by §4 and Pt. G, §1, is further amended to read:

9-B. Production. "Production" means an operation or integrated series of operations engaged in as a business or segment of a business that transforms or converts personal property by physical, chemical or other means into a different form, composition or character from that in which it originally existed. "Production" includes film production.

"Production" includes manufacturing, processing, assembling and fabricating operations that meet the definitional requisites, including biological processes that are part of an integrated process of manufacturing organisms or microorganic materials through the application of biotechnology.

"Production" does not include biological processes except as otherwise provided by this subsection, wood harvesting operations, the severance of sand, gravel, oil, gas or other natural resources produced or severed from the soil or water, or activities such as cooking or preparing drinks, meals, food or food products by a retailer for retail sale. The foregoing are examples of activities that are not included within the term "production."

Sec. 14. 36 MRSA §1811-B, as enacted by PL 2003, c. 673, Pt. AAA, §3, is amended to read:

§1811-B. Credit for tax paid on purchases for resale

A retailer registered under section 1754-B may claim a credit for sales tax imposed by chapters 211 to 225 this Part if the retailer has paid the sales tax on an item that it subsequently resells tangible personal property purchased for resale at retail sale. The credit may be claimed only on the return on which the sale of the item is reported that corresponds to the period in which the tax was paid. The credit must be claimed on a return filed within 5 years from the date on which the retailer purchased the item and may not be claimed if the item was used has been withdrawn from inventory by the retailer for the retailer's own use prior to its sale. If the retailer