There are many different incentives offered by governments at different levels to support businesses in specific sectors. Companies in the manufacturing, fabrication, processing, and other sectors in the state of Wisconsin may qualify for reductions in sales taxes on utilities. In this state, qualifying water, gas, and electrical meters will have a specific percentage reduction based on the use of the utility.
The first step in the process is completing a predominant use study in Wisconsin. This is a voluntary process that can be done with an existing business, a new plant or facility, or when changing vendors, reconfiguring processes, or making significant operational changes.
Determining Qualifying Percentages
A predominant use study in Wisconsin is a detailed analysis of the use of each utility at each meter in the facility. If the company owns more than one facility or building, a separate study is done in those locations on the meters.
Hiring a service to complete a predominant use study in Wisconsin is the most effective option. These companies have the teams, the understanding of the state requirements, and the teams of engineers and tax attorneys to complete the process.
During the evaluation, the use of the specific utility is traced to every application, appliance, equipment, machine, or system using that utility. These applications are either classed as qualifying use or not. Based the percentage of qualifying use, the business receives a refund of that utility for that percentage for up to 48 months prior to the filing. In addition, the business also receives the same tax exemption going forward, resulting in significant savings in water, gas, and electrical utility sales taxes.
The team at B. Riley Financial, Inc. can complete a predominant use study in Wisconsin for your company, reach out and give us a call.