In 30 different states, companies in qualifying types of industries can complete a predominant use study to receive utility sales tax exemptions. This includes both ongoing utility sales tax exemptions as well as a refund for a specific period on utility taxes paid by the company.
A predominant use study is a form of utility survey. It collects, analyzes, and compiles data on the use of water, electricity, and natural gas throughout the business on a per meter basis. While used to qualify for the utility sales tax exemptions, this information from the utility survey can also be used by the company for several different reasons.
Increasing Energy Efficiency
One of the advantages for a business in completing the predominant use study is a clear understanding of how and where energy consumption occurs in the process or within the facility.
This understanding can assist in setting up or managing processing and manufacturing to reduce the overall energy use. This can help to further reduce the overall utility costs while still receiving the utility sales tax exemptions.
The Big Picture
Although the utility survey is done on a meter basis, it still provides the company with a clear picture of their processes and energy use throughout an entire facility. This data can be used in making processing decisions, upgrading equipment, or reconfiguring the process to increase energy savings.
The data from a predominant use study is useful as a decision-making tool and as a baseline reading for companies interested in becoming leaner and more energy efficient.
For a professional utility survey to provide critical insight into your business processes, contact the team at B. Riley Financial. Information on how we can help your business can be found at brileyfin.com.