Overview
Turn utility costs into tax savings
Our tax specialists help manufacturers recover taxes paid on utilities and equipment through properly performed Predominant Use Studies. We go beyond surface-level reviews to uncover hidden value in gas, water, electricity and production-driven operations.
With help from our sales and use tax experts, many manufacturers can significantly reduce their tax liability. By analyzing utility bills from utility companies, businesses can secure an exemption from sales tax, recover historical tax refunds, and establish ongoing savings they didn’t realize were available.
Resources
Solving challenges in utility sales tax exemptions
As regulations continue to evolve, many states require detailed documentation to support utility sales tax exemptions. Manufacturers often struggle to determine how electricity measured by kilowatt hour; natural gas and water usage qualify under manufacturing or processing exemptions.
Working with experienced specialists ensures studies are defensible, compliant and accurately reflect how utilities and each piece of equipment are used in exempt production activities.
A Predominant Use Study determines whether utilities and equipment are primarily used in manufacturing to qualify for sales tax exemptions and refunds.
Electricity, gas, water and manufacturing equipment qualify when predominantly used in production activities.
Gas and water are exempt from sales tax when primarily used in qualifying manufacturing or processing operations.
States typically require utility bills, usage analysis and a properly performed Predominant Use Study. In some states like Texas, require certification from a Licensed Professional Engineer.
Businesses recover taxes and lower future liability by documenting utility and equipment used in manufacturing and claiming eligible sales tax exemptions for prior and future years.
A Predominant Use Study determines whether utilities and equipment are primarily used in manufacturing to qualify for sales tax exemptions and refunds.
Electricity, gas, water and manufacturing equipment qualify when predominantly used in production activities.
Gas and water are exempt from sales tax when primarily used in qualifying manufacturing or processing operations.
States typically require utility bills, usage analysis and a properly performed Predominant Use Study. In some states like Texas, require certification from a Licensed Professional Engineer.
Businesses recover taxes and lower future liability by documenting utility and equipment used in manufacturing and claiming eligible sales tax exemptions for prior and future years.
How we can help
Specialists in Predominant Use and Utility Studies – it’s what we do
With 40 years of complex consulting experience, we help manufacturing and processing businesses mange the entire Predominant Use Study process. Our team combines tax expertise with registered engineering support to ensure studies meet the unique standards each state requires.
We handle:
Complimentary eligibility assessments
Detailed utility studies analyzing kilowatt-hour usage
Gas and water exemption from usage analysis
Equipment and production process reviews
Refund claim preparation and filing
Completing and compiling all proper documentation
Ongoing exemption monitoring
Insights
Our latest thinking
Insights, guidance and strategies to help manufacturers unlock hidden tax savings through utility sales tax exemptions and Predominant Use Studies.
