In the United States, several states have the option for businesses in the processing and manufacturing sector to apply to get a predominant use study completed. This study evaluates how electric power, natural gas, and water is used in manufacturing and processing.
Each piece of equipment that uses these utilities is evaluated and documented to be classified as exempt or non-exempt from the utility tax. The utilities tax service provider then completes the necessary report and determines the percentage of the utility on each meter that qualifies for the tax exception.
When choosing a utilities tax service provider, consider the following factors to streamline the process:
- Choose experience – look for companies that have years in the industry. These companies tend to have a relationship with the utilities and understand the specific information required for each state and utility.
- Consider the provider company scope – provider companies may only offer predominant use studies. While this can be helpful, there may be other services your business needs to grow, expand, or maximize potential. The large national companies offer advisory and real estate services, capital acquisitions, mergers, and other business support services.
- Assess geographic location – some utilities tax service providers only operate in one state or a small geographic area of the country. Other providers offer predominant use study and utility analysis services in the states that offer the program, making it much easier for businesses with more than one location to work with a single trusted provider.
Hiring a company that offers more than a basic, local, predominant use study provides advantages that are well worth considering.
|At B. Riley Financial, Inc., we offer a full range of financial and advisory services, including utilities tax service and predominant use studies. To find out more, visit our website.|