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Now Performing Predominant Use Studies for the States listed below

Most States listed have State sales tax exemption/refund opportunities for manufacturers, fabricators, and processors. Exemption and refund opportunities for Rental Refurbishment and Commercial Residential Properties is available in some States.

Contact us for a no-risk, no-obligation quote.

ARKANSAS

Beginning July 2007 through June 30, 2008 state tax will be 4.5% vs 5%.
Beginning July 1, 2008 and thereafter, rate will be 4% vs 6%.
Utility must be used directly in manufacturing.
Manufacturing area must be separately metered from taxable area.

COLORADO

COLORADO

Beginning March of 2010, the exemption for industrial processes has been suspended but remains for agricultural processes.
Lighting does qualify.
Study required.

CONNECTICUT

CONNECTICUT

Predominant use (76% or more of utility used in manufacturing allows for 100% exemption).
If less than 75% used in manufacturing, partial exemption is possible.
Study required.

FLORIDA

FLORIDA

Tiered exemption system used for electricity exemptions.
Under 50% used in manufacturing does not qualify for exemption, 50% through 75% used in manufacturing receives 50% exemption, 76% and above used in manufacturing receives 100% exemption.
Only specific industries qualify. Check SIC code in classification manual.
Study required.

GEORGIA

Effective January 1, 2013, there will be a four year phase-in period for the exemption for sales and use tax on the sale, use, storage, or consumption of energy that is necessary and integral to the manufacture of tangible personal property at a manufacturing plant in Georgia.

The schedule is as follows: (1) From January 1, 2013— December 31, 2013, a 25% exemption from the 4% state sales and use tax rate and any 1% local sales and use tax (other than any 1% educational local option sales and use tax); (2) from January 1, 2014— December 31, 2014, the 25% exemption will increase to 50%; (3) from January 1, 2015— December 31, 2015, the exemption will increase to 75%; and (4) on January 1, 2016 the exemption increases to 100%

IDAHO

IDAHO

Exemption on all utilities delivered by pipes, wires or mains.

INDIANA

INDIANA

Predominant use (51% or more of utility used in manufacturing allows for 100% exemption.) If less than 50%, then a partial exemption is available but no refund is granted. Annual refunds must be applied for from State Refunds and exemptions for water used in all or part of manufacturing and/or processing does qualify Predominant Use Study required.

IOWA

IOWA

Actual percentage of utility used in manufacturing.
Updates required every 3 years.
Research & Development does qualify.
Refunds and exemptions for water used in all or part of manufacturing and/or processing does qualify.
Study required.

KANSAS

Actual percentage of utility used in manufacturing.
Research & Development does qualify.
Refunds and exemptions for water used in all or part of manufacturing and/or processing does qualify.
Study required.

KENTUCKY

KENTUCKY

100% exemption if the cost of natural gas and electricity exceeds 3% of the overall cost of production.

LOUISIANA

LOUISIANA

Beginning July 1, 2008, sales and use tax rate reduced from 3.3% to 2.3%.
After July 1, 2009, no tax applies to electricity and natural gas.

MAINE

MAINE

95% exemption if manufacturing occurs.
No study required.

MARYLAND

MARYLAND

Predominant use (51% or more of utility used in manufacturing allows for 100% exemption).
Study required.

MASSACHUSETTS

MASSACHUSETTS

Predominant use (75% or more of utility used in manufacturing allows for 100% exemption).
Refunds and exemptions for water used in all or part of manufacturing and/or processing does qualify.
Research & Development does qualify.
Study required.

MICHIGAN

MICHIGAN

Actual percentage of utility used in manufacturing.
Research & Development does qualify.
Study Required.

MINNESOTA

MINNESOTA

Limit of two(2) refund claims only per year (regardless of tax type).
Actual percentage of utility used in manufacturing.
Refunds and exemptions for water used in all or part of manufacturing and/or processing does qualify.
Research & Development does qualify.
Study Required.

MISSISSIPPI

Automatic reduction from the full tax rate down to 1.5% for utilities used in production.
Taxpayer needs to obtain direct pay permit from state and remit the appropriate tax to state.
Water qualifies for exemptions.
Study required.

MISSOURI

MISSOURI

There are two different ways to get exemptions and refunds.
Utility cost must be more than 10% of the total cost of production. To determine percentage take total production cost minus utilities cost then divide utility cost by production cost.
An application has to be submitted to the state (Form 1749E-10) for each calendar year you are claiming refund.

OR

Tiered system
Actual percentage must be calculated. (Square footage may be used)
1% through 25% used in manufacturing receives 25% exemption, 26% through 50% used in manufacturing receives 50% exemption, 51% through 75% used in manufacturing receives 75% exemption, 76% and above receives 100% exemption.
Special exemption for use of recycled materials.
Study required.

NEBRASKA

NEBRASKA

Predominant use (51% or more of utility used in manufacturing allows for 100% exemption).
Refunds and exemptions for water used in all or part of manufacturing and/or processing does qualify.
Study required.

NEW JERSEY

NEW JERSEY

Must be in Enterprise Zone.
Must employ at least 250 people.
Several other highly restrictive exemptions for qualifying companies available.

NEW YORK

NEW YORK

Actual percentage of utility used in manufacturing.
Research & Development does qualify.
Utility company applies 100% exemption on bill.
Taxpayer accrues and pays taxable portion to State using form ST100.
Study required.

NORTH CAROLINA

NORTH CAROLINA

Reduced tax rate to 2.83%.
Can be reduced to .17% of megawatt volume of electricity received during the previous calendar year if more than 900,000 for the next fiscal year.

OKLAHOMA

OKLAHOMA

Predominant use (51% or more of utility used in manufacturing allows for 100% exemption).
Study required.

PENNSYLVANIA

PENNSYLVANIA

Actual percentage of utility used in manufacturing.
Lighting in plant qualifies.
Study required.

RHODE

RHODE ISLAND

Actual percentage of utility used in manufacturing.
Study required.

SOUTH CAROLINA

SOUTH CAROLINA

Actual percentage of utility used in manufacturing.
Study required.

TENNESSEE

Reduction from the full tax rate down to 1.5% if you are a manufacturer.
Water does qualify.

TEXAS

TEXAS

(Rule 3.295- Apr 13, 2005) (Rule 3.295- Mar 7, 2017)

Predominant use (51% or more of utility used in manufacturing allows for 100% exemption).
Predominant use study must have engineering statement on study. A licensed engineer must affix his or her stamp and sign attesting to the accuracy of the study, OR the engineer must be a graduate from a accredited engineering school to sign off on the study.
Predominant use studies are required.

UTAH

UTAH

Predominant use (51% or more of utility used in manufacturing allows for 100% exemption).
Study with only taxable usage required.

VIRGINIA

VIRGINIA

All utilities are exempt.

VERMONT

VERMONT

Actual percentage of utility used in manufacturing.
Valid for three years only.
Study required.

WEST VIRGINIA

WEST VIRGINIA

All utilities are exempt.

WISCONSIN

WISCONSIN

Actual percentage of utility used in manufacturing.
Study required.

WYOMING

WYOMING

Actual percentage of utility used in manufacturing.
Study required.

Sales Tax benefits available for these states (Most require a predominant use study.) for most utilities: Arkansas, Colorado, Connecticut, Florida, Georgia, Idaho, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Nebraska, New Jersey, New York, North Carolina, Oklahoma, Pennsylvania, Rhode Island, South Carolina, Tennessee, Texas, Utah, Virginia, Vermont, West Virginia, Wisconsin, Wyoming.