Utility Exemption Studies

 

Predominant Use Studies

Predominant use studies are required to qualify a facility for a state and local sales tax exemption on electricity and natural gas billings. In a manufacturing operation for example, this study determines the percentage of electricity/natural gas consumed directly for the manufacturing process versus nonrelated process within the facility’s total usage. Likewise, these studies apply for nursing homes and other residential facilities to determine utility usage for residential purposes versus the facility’s total usage.

Predominant use studies are valuable when:

 

✓ The monthly bill from an electricity/natural gas provider has a sales tax of $50 or more
✓ An existing/new facility undergoes qualification for energy tax exemptions
✓ An energy tax exempt business is acquired by new owners (or relocated)
✓ A facility owner does not have access to the original energy tax exempt study (during an audit, or otherwise)
✓ An existing tax-exempt operation is expanded or switched to a new energy provider

Contact Us Today

 

For more information on Streamline’s utility exemption studies, contact us at (972) 838-1914.