Predominant Use Studies are niche engineering studies performed by licensed engineers. A predominant use study is an evaluation of your company’s electric and natural gas consumption that can potentially allow you to receive a state and local sales tax exemption moving forward and potentially receive 4 years retroactive.
Click for the Texas State Comptrollers Office on Predominant Use Study
- A complete predominant use study is required when seeking a refund claim related to the purchase of natural gas or electricity.
- Twelve consecutive months of utility usage must be a part of the study
- The study must establish that the electricity measured by the meter is predominantly (more than 50%) used in a tax-exempt manner.
- Must be certified by a registered engineer or a person with an engineering degree from an accredited engineering college.
- The owner of the business must certify that all items using natural gas or electricity (depending on which utility is covered by the study) are listed and that the hours of use for each item are correct.
- The certification of both the engineer and the owner must appear on the face of the study.
To qualify for the tax exemption 51% or more of the utility must be used in a non-taxable manner.
How much of a refund can I expect? Texas Tax Code allows for up to a 4-year refund or state sales tax you’ve paid on the meter
Customers that work in the following industries may qualify:
• Manufacturing and fabricating
• Food and beverage processing, bakery, and assembly factories
• Nursing homes, assisted living facilities, and retirement homes
• RV Parks, mobile home parks, and apartment and condominium complexes
• Agricultural and horticultural uses, golf courses, oil and gas operations, mining
• National defense operations, and infrastructure repair operations such as railroad and aircraft engine repair
Please contact us below for a request for proposal for a Predominant Use Study