Lowering operating costs is an essential step in the profitability of a successful business. Specific types of businesses in any state may qualify for a utility tax exemption for future utility use, as well as obtain a refund for past utility taxes paid.
The first step in the process is to determine if the business qualifies for the tax exemption. While this is done on a state-by-state basis, most states provide this exemption to manufacturing and processing businesses as well for production, mining, agricultural and restaurants, and hospitality properties.
The Predominant Use Study
Once the business is found to be eligible, the next step is to complete a predominant use study. This is typically completed by a third-party provider with the expertise and experience in the process.
Each gas and electric meter in the facility is studied. This includes providing information on the meter, each piece of equipment on the meter, and the amount of the utility the equipment uses.
The specific use of each piece of equipment is then deemed to be qualifying or non-qualifying based on the specifics of use. Based on this information, the meter is considered eligible or partially eligible for the utility tax exemption. This status is determined by the laws of the state.
The predominant use study is then filed with the utility service and the required government agencies. Upon approval of the study, the business is refunded any qualifying past payments of the utility taxes and provided an exemption from future taxes.
Business Name can complete a predominant use study for your business in any state in the USA. To learn more, see us at Website URL.
