If you want to save money for your business, you may qualify for a tax exemption on your utility bills. Completing a predominant use study in Indiana offers a simple way to find out if you qualify and to get the documentation you need to present to your utility company. The following are some things you need to know about this study to determine if it’s the right step for your business.
Who Qualifies
The first step in determining if a predominant use study in Indiana is right for you is whether your business qualifies. A professional engineering company can help you decide if you would qualify based on the type of business you operate. In short, businesses that manufacture, process, or fabricate tangible personal property can qualify for an exemption presuming their predominant use study reveals the appropriate percentage of energy use that applies to qualifying equipment and processes.
What Are the Requirements
In addition to manufacturing, processing, or fabricating tangible personal property, a company must go through a predominant use study in Indiana to determine what percentage of their energy usage applies to these processes. Under Indiana law, a company qualifies for a complete exemption if its percentage of use is above 50 percent. However, companies that fall under the threshold may qualify for a partial exemption.
Current and Past Exemption
When you complete a predominant use study in Indiana, you will receive a tax exemption certificate you can present to your utility companies to remove the state, county, and local sales tax on your utility bills. However, you aren’t limited to claiming the exemption from future bills. State regulations dictate you can apply for a refund of taxes paid over the past three years to give you even more savings.
If you’re interested in getting a predominant use study in Indiana, visit the Business Name website to learn more about the process.
