Sales tax on utility bills can add up, taking away valuable revenue from your company. You can save significant money if your business qualifies for tax exemption through a predominant use study in Wisconsin. This study evaluates how much energy qualifying equipment and processes use to provide a matching percentage off your utility sales tax.
Measuring Your Usage
The first step in the predominant use study in Wisconsin is to measure your energy usage. They will connect the equipment to your meters to calculate how much each piece of equipment uses over a period. They will average the monthly use over the year to give an accurate estimate of up to ½ percent, giving you confidence that you’re receiving an appropriate tax dedication.
Claiming Your Tax Exemption
After the predominant use study in Wisconsin, you will receive a document indicating your tax-exempt status. You must submit this certificate to your utility company to receive the exemption on future bills. In addition, your company can qualify for a sales tax return paid over the past three years at the same percentage, allowing you to save more money.
Don’t Forget Reviews
There is no requirement for how often you need a predominant use study in Wisconsin, but this doesn’t mean you’ll never need another one. Experts recommend requesting a new study if you change or add equipment to your company, notice a significant change in energy use, or the company changes hands.
If you need to schedule a predominant use study in Wisconsin, visit the B. Riley Financial website to learn more.