What is a predominant Use Study?

Many states allow a sales & use tax exemption on electricity and natural gas when more than 50% of the utility on a given meter is used for qualifying manufacturing, processing, or fabrication activities. A certified Predominant Use Study documents the exempt percentage so you can stop paying tax going forward and pursue eligible refunds for prior periods. Refund claims can be filed up to 48 months from the date the tax was due from the retailer, depending on the state.

KBKG Client Success Stories

 

  

 

Manufacturing
$1.2M in annual utilities

Recovers:

$73,000+ Per Year

$292,000+ Total Refund

 

 

  

 

Food Processing
$3.9M in annual utilities

Recovers:

$201,000+ Per Year

$804,000 Total Refund

 

Who Qualifies:

Businesses in production environments, including:

    • Manufacturing (discrete & fabrication)
    • Plastics & Rubber
    • Food & Beverage Processing
    • Chemicals / Pharma / Nutraceuticals
    • Paper / Packaging / Printing
    • Other

Key Benefits of a Study:

    • Immediate Reduction in Utility Costs
    • Refund Opportunities for Prior Years
    • Strong Compliance and Audit Support
    • Clear Allocation of Taxable vs. Exempt Loads
Predominant Use Study Guide

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Predominant Use Study



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