One of the issues any business has is to manage how to afford and pay for services and overhead. Utility costs are a significant part of that overhead in processing, manufacturing, and production types of industries.
A predominant use study is a specific analysis of how a business uses electricity and natural gas in its daily operations. Depending on the state, the analysis can also include water use. The utility use is measured at each meter, and the respective end-use of the utility is either qualifying or not qualifying under the statute.
The predominant use study is typically completed by an independent third party that specializes in these studies. The study is completed to meet the specific requirements of both the state and the local government where the business is located.
Reduced Sales Tax
Specific types of use are qualifying, while others may not be eligible. Based on the results, the business can apply for a current and future sales tax exemption based on the results of the analysis. This may be a percentage or a complete sales tax exemption.
This exemption on sales taxes can have a significant cost benefit for qualifying businesses. The sales exemption is ongoing, saving money on an annual basis.
Refund of Past Sales Tax
In addition to current and future sales tax exemptions, businesses can also request a refund for past sales tax paid on the various meters. Different states provide various lookback periods to claim the refund.
Improve Inefficiencies
Finally, a predominant use study can help identify an area of inefficiency in the use of utilities. This can be a cost-saving feature moving forward and helps your processing business to become a greener company.
Business Name provides predominant use study reports throughout the United States.
