Utility Sales Tax Exemption

A utility sales tax exemption allows for a full, partial, or tiered removal of State, City, County, and MTA sales taxes on electricity, natural gas, and/or water invoices for certain industries. This manufacturer’s raw material sales tax exemption is unique since it is not allowed on a company-wide or location basis. The utility sales tax exemption is allowed on a per-meter basis only for States where this exemption is available. Most States will require proof of qualification (a predominant use study) for this exemption. For most States, there are also refunds of utility sales taxes available; limited to the statutes of limitations by the individual States (24-120 months where allowed). Contact us for more details.

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Recent Projects include an oil and gas pipe manufacturer, a rental refurbishment company, a food processor, a grain processor, a plating company, and many other projects of all sizes.

A Utility Sales Tax Exemption may save your company up to 10% on your company’s electricity, natural gas, and/or water invoices. A Predominant Use Study will serve as proof of qualification, on a per meter basis, and is often required by the State agencies to determine the exempt percentages allowed for this exemption. (Varies by Industry, State, City, and County.)

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We perform professional engineer certified predominant use studies.

A predominant use study will determine the percentage of energy from a meter that is used in qualifying processes, such as manufacturing, versus the non-qualifying areas such as office, warehouse, retail space or other taxable uses.

Performing Predominant Use Studies

This includes everything from the site visit for gathering all of the raw data to compiling the predominant use study, balancing with a 12 month history, and certifying the predominant use study by our professional engineer.

Processing Exemptions and Refunds

The term processing includes compiling all paperwork needed for filing the utility sales tax exemption with the utility company and filing for the refund with the utility provider and/or the State when needed.

Defending Our Predominant Use Studies

The rubber meets the road when the State agencies want to review the predominant use studies to check for accuracy and validity. To ensure our clients retain their exemption status and refund, we handle the defense of our predominant use studies at no additional cost to our clients.

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Our team is fueled by a bold spirit: for what we do, for the people we do it for.

Performing Predominant Use Studies encompasses many different skills and knowledge of the law in the production and accuracy required by the various States.

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In most States, if the utility sales tax exemption is claimed, a Predominant Use Study is also required. Proof of utility sales tax exemption entitlement is best proven by an engineer-certified Predominant Use Study.

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National Utility Solutions:

We combine forward-thinking design and game-changing technology to ensure accurate predominant use studies. Our experts will maximize the allowable utility sales tax exemption and refunds in all States where available; while eliminating the sales tax liability going forward.