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Electric Predominant Use Study

For many manufacturers, processors, and fabricators, sales tax exemptions on the purchase of utilities, such as electricity, natural gas, steam, and water, can provide one of the single largest sources of tax savings in their operations. This tax exemption can result in hundreds of thousands of tax dollars saved annually. To lower your company’s utility costs through the reduction or elimination of sales tax, a predominant use or exempt use utility study may be required to support the claim for exemption.

SMART TAX USA provides predominant use studies for companies across the US and for  a variety of industries to support their claims for sales tax exemptions on the purchases of utilities, such as electricity and natural gas. Utility study detail and certification documentation requirements vary from state to state, but in most cases, the power consumed to operate exempt equipment is considered an exempt use of that power.

In many states, meters that measure more than 50% of their power consumed operating exempt equipment generally qualify for a 100% exemption from sales tax. Smart Tax USA knowledge and thorough understanding of all state and local tax laws and compliance requirements will ensure that your company submits an accurate utility exemption claim that substantiates the highest possible exemption percentage achievable.

Contact SMART TAX USA to learn more how we can help.


SMART TAX USA specialized comprehensive analysis can determine how these new exemptions; credits and incentives directly affect your business. This will result in a reduction of current and future tax liabilities providing significant tax savings for your business! Most importantly our success rate is 90% of the companies we work with will have a substantial tax saving benefit. Our initial review will determine the validity of your refund status and as always, the consultation is absolutely free. Our work is performed on a contingency fee basis, “if we do not perform no fee is due!”