Unfortunately, many plants and facilities in the state of Pennsylvania do not take advantage of a predominant use study. Qualifying businesses throughout the state are able to apply for a sales tax exemption on electricity and natural gas on a per-meter basis.
This sales tax exemption is based on the percentage of the utility determined to be qualifying through a predominant use study in Pennsylvania. A specialized service typically does this study. These firms provide the engineers and the expertise needed to complete the study and submit the documentation required by the state and local governments.
The predominant use study in Pennsylvania is used to determine the amount of electricity or natural gas used at each meter in qualifying operations. Qualifying use is related to manufacturing, production, processing, fabrication, and associated processes.
Utility use that does not qualify includes office space use of electricity and natural gas and utility use in break rooms, warehouses, sales floors, retail space, and other similar spaces.
The predominant use study in Pennsylvania is a non-invasive assessment of the use of the utility in the building based on each meter. Your business can continue to operate with no downtime or disruption. Also, the calculations average the use over the year, which means businesses and facilities do not have to worry about peak or low use periods.
After the study, the business will receive a tax exemption based on the percentage of qualifying use on each utility meter. In addition, the business can also receive a refund for the previous 36 months of sales tax paid to utility companies.
To book your predominant use study in Pennsylvania, call on the team at B. Riley Financial.