There are different times when a business in Wisconsin may require a predominant use study. Recognizing these times and scheduling the study is the best way to ensure your business receives the maximum possible utility sales tax exemptions.
Obtaining the Utility Tax Exemption
Hiring a company to complete a predominant use study is the easiest way for any new or existing business in Wisconsin to complete the required documentation and verifications. The process includes evaluating the usage of electricity and natural gas per meter used for qualifying equipment and processes.
This is done by collecting data at the meter and then verifying the use of the utility. The actual percentage of the utility found to qualify is then calculated and analyzed to create an accurate report of use over the past twelve months.
In the state, the percentage of qualifying use of the utility results in the same partial utility sales tax exemption. This same data also qualifies the business to receive a percentage refund paid to utility sales taxes over the past 48 months.
New and Existing Businesses
A new business can only request a study once they are operational, and all equipment and manufacturing processes are in place. Once a predominant use study is done, there is no need to repeat the study unless the state requires a new study or there is a change.
Increases in manufacturing, the addition of significant new equipment, or reconfiguration of the process are all excellent times to complete a new study to maximize your utility sales tax exemptions.
For support in when to schedule a predominant use study in Wisconsin, book a consultation with an expert at B. Riley Financial. Details on our services are found at brileyfin.com.