PREDOMINANT USE STUDY

A predominant use study is an evaluation of a company’s electric and natural gas consumption that can potentially allow the company to receive a state and local sales tax exemption. Qualifying customers, for example a manufacturing plant, can not only receive future tax exemption status, but can also recover past sales tax expenditures if deemed applicable. Roughly 30 states have enacted a law that allows businesses to qualify for sales tax exemption status upon having a predominant use study performed.

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The major benefit of having a licensed consultant conduct a predominant use study comes down to the savings in tax exemptions that your company can receive. While identifying areas of cost savings, the predominant use study also highlights areas where your company can improve energy management processes. Additionally, the study provides documentation that can be used to support the tax exemption status.

If you are interested in learning more about predominant use studies, you can contact a professional energy consultant who can provide further information about qualification and the benefits of a predominant use study .

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