Businesses in Michigan that qualify as manufacturing, processing, and other identified operations can receive utility sales tax refunds and exemptions through a Predominant Use Study.
As in many states, Michigan uses a per-meter study format, which requires tracking the use of natural gas and electricity from the meter to each device. Individual devices are then identified as qualifying or non-qualifying. This information is used in complex calculations to average the use across the year for qualifying devices to determine the percentage utility sales tax exemption.
Experienced Providers Complete the Study Without Downtime
Working with experienced engineers and financial experts simplifies the Predominant Use Study. These providers have the software, professionals, and the practical experience of completing thousands of these studies for businesses across Michigan and throughout the country. The team arrives at the facility and completes the data collection process with minimal disruption and no downtime for the operation.
Businesses Can Receive Utility Sales Tax Refunds
A Predominant Use Study is required to qualify businesses for a utility sales tax exemption based on meters throughout the facility. However, the process also qualifies businesses to apply for a refund for overpaid taxes for the prior 48 months.
Averaged Across the Year
Just one of the many calculations required is the averaging of the use of the utility across the year. The average eliminates only using the results from high use in peak operations and drops in use with seasonal production changes.
Includes All Utility Consuming Devices
The engineers and technicians completing the study must include every utility-using device on each meter in the business. These devices include lights, computers, equipment, systems, and anything else using electricity or natural gas.
Our team of experts can complete a Predominant Use Study on your Michigan business without any disruption to your processes. To schedule a consultation, see us at Website URL.
