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Predominant Use Study

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 refund retroactive.

  • 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.

    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
  • Predominant use study, savings

    Medical facility
  • Cost Basis: $1.7 million
  • Accelerated: $2,530,998 (44%)
  • First Year Tax Benefit $496,192
  • Five Year Tax Benefit $1,199, 739
  • tax savings
    Corporate HQ
  • Cost Basis: $459,140
  • Accelerated: $459,140.42 (79%)
  • tax savings
    Typical Convenience Store
  • Cost Basis: $2.9 million
  • Accelerated: $919,810 (32%)
  • First Year Tax Benefit $136,055
  • Five Year Tax Benefit $686,134
  • tax savings
    Our focus is entirely on finding value for our clients

    We get great satisfaction from recovering that value for our clients and subsequently forging the kind of relationship that allows us to find further ways to collaborate.

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