states throughout the USA use a Predominant Use Study to qualify
businesses for a utility sales tax exemption. The specifics of the
study requirements are established by the state, with slight
differences in qualifying companies and the amount of the tax
exemption across the country.
Wisconsin, the utility sales tax exemption is based on the actual
percentage of the utility used by a qualifying device, process, or
system. The exemption is available to manufacturing, processing, and
other qualifying companies in the state.
Use Study in Wisconsin
is completed on a per meter basis. This means the electricity or
natural gas passing through the meter is broken down into use by
specific devices, equipment, or systems. For example, electricity in
a plant could be used for lighting, heating and cooling, running the
breakroom refrigerator, or operating a desktop computer.
of these devices meet the criteria for qualifying for the exemption,
while others are not part of the recognized processing,
manufacturing, or production operations. The Predominant Use Study
traces the use of this electricity. It accurately measures the annual
rate of energy use per device.
complex computations, the study determines the percentage of
qualifying utility use through the meter. This percentage of
qualified use is converted into the corresponding partial sales tax
exemption on the utility.
addition to the current and future utility sales tax exemptions,
businesses can also claim refunds for the past 48 months to recoup
excessive sales tax payments based on the study results.
learn more about a Predominant Use Study for your Wisconsin business,
contact the team at B.
Additional information can be found at brileyfin.com.
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