Minnesota Predominant Use Studies are required for the partial electricity and natural gas sales tax exemptions and refund. Contact us for a no-obligation consultation. Call 844-767-0037 or 346-241-0100 with any questions.
The predominant use study will determine the percentage allowed to be removed from the utility invoice(s) as well as the percentage to be refunded. We can also recover sales taxes paid in error up to Minnesota’s statute of limitations of 42 months with exceptions listed below. Our expertise combined with our proprietary software and PE-certified predominant use studies can maximize the exempt percentage allowed in Minnesota. The exemption percentage allowed is on a per meter basis; not a per location or company basis. The predominant use study will eliminate the sales tax liability by not over-claiming the exemption and refund. The study may also help determine where other savings potential may exist too. (For example: LED lighting vs current lighting.)
We handle the defense of our predominant use studies with the Department of Revenue, when needed, at no additional cost. The defense will ensure our clients can keep their exemptions and refunds and not have to repay taxes with penalties and interest.
See industries where predominant use studies may add cost savings benefits and eliminate some sales tax liabilities. Note: the laws will vary from State to State so contact us with questions especially if you have facilities in multiple States.
As seen below, research and development is allowed as exempt use in Minnesota but not allowed in most other States.
Limit of two (2) refund claims only per year (regardless of tax type).
Actual percentage of utility used in manufacturing.
Refunds and exemptions for water used in all or part of manufacturing and/or processing does qualify.
Research & Development does qualify.
Study Required per Sales Tax Fact Sheet 129 at the link below.