Did you know your manufacturing or industrial processing plant could qualify for a utility tax exemption? If you haven’t gotten a predominant use study in Pennsylvania, it may be time to think about it. Before you schedule an appointment, it can be beneficial to understand what to expect from your study.
What Is Exempt?
First, it’s essential to understand what qualifies for a tax exemption. In general, any equipment bought for sole use in manufacturing or processing may qualify for a tax exemption. However, this exemption extends beyond purchasing the equipment. Any electricity used to run the equipment, as long as it is solely used for business purposes, can also qualify for utility tax exemption. When you complete your predominant use study in Pennsylvania, their team can let you know what qualifies to help you understand the process.
A Close Look at Your Energy Usage
Throughout the predominant use study in Pennsylvania, the study team will install meters to determine what percentage of your electricity use goes toward each qualifying machine. This information lets them know what percentage of your overall utility bill qualifies for the exemption. They will compare specific equipment usage to your average monthly utility costs, calculating your monthly tax exemption.
Receive Your Certificate
Once the predominant use study in Pennsylvania is complete, you will receive a tax exemption certificate. This certificate is valuable documentation that allows you to deduct the taxes from the specified percentage of your energy bill.
Resource Box: If you’re interested in getting a predominant use study in Pennsylvania, visit the B. Riley Financial website to learn more.