Ingredient or component parts; exemption

Sales and use taxes shall not be imposed on the gross receipts from the sale, lease, or rental of and the storage, use, or other consumption in this state of:

(1) Property which will enter into and become an ingredient or component part of property manufactured, processed, or fabricated for ultimate sale at retail; or

(2) A service listed in subsection (4) of section 77-2701.16 which will become an ingredient or component part of a service listed in subsection (4) of section 77-2701.16 for ultimate sale at retail.