Energy used is taxed for residents and businesses. Still, some companies may qualify for a tax exemption on a portion of their energy use as long as it meets specific requirements. The only way to benefit from these tax exemptions is to complete a predominant use study in Pennsylvania. This study can help your business save money on its operations.
How Is Exemption Calculated?
When you get a predominant use study in Pennsylvania, the evaluator will determine which equipment you have that qualifies for tax-exempt energy usage. They then calculate how much of your energy use applies to the qualifying equipment. This calculation is the amount for which you will be tax exempt. These exemptions are based on a per-meter basis, calculating the specific energy use by permitted equipment connected to each energy meter.
Future Tax Exemptions
A predominant use study in Pennsylvania determines future tax exemption qualifications for your business. When you receive your certificate, your utility company won’t charge tax on the specified percentage of your utility bills each month, helping your business save money on operating costs. If your business use changes due to purchasing new equipment, moving to a new property or expanding your existing operations, you may need a new predominant use study to recalculate your exemptions.
Past Tax Refunds
In some situations, you may qualify for reimbursement of taxes you previously paid on your utility bills. Depending on the situation, getting a predominant use study in Pennsylvania can help you recover the designated percentage of your utility taxes paid for up to 36 months before your examination. Your evaluator can help you determine if you qualify for reimbursement and how far back you can request repayment.
Resource Box: If you need a predominant use study in Pennsylvania for your business, visit the B. Riley Financial, Inc. website to learn more.