An important issue to keep in mind for any manufacturing, processing, or production company in Michigan is the ability to request a utility tax exemption. This application starts with a predominant use study, which is usually completed by a third-party provider.
What is a Predominant Use Study?
A predominant use study in Michigan is a data collection event that tracks the use of gas or electricity for each meter on the premises. This tracking is completed down to the device, equipment, or appliance that is using the utility. Each of these devices is determined to qualify or not qualify for the exemption. Based on the percentage of the meter used for qualifying equipment, devices, or appliances, the company receives a utility tax exemption.
After completing a predominant use study in Michigan, it is also possible to apply for a refund for up to forty-eight months for paid utility taxes. This refund and the ongoing utility tax exemptions can add significantly to the company’s bottom line.
What to Consider When Planning the Study
An experienced company will complete a predominant use study in Michigan without any disruption to your business. They are thorough and accurate in all of their tracking and measurements, and they understand the criteria for qualifying and non-qualifying equipment.
It is not necessary to consider the workload or the season to plan the predominant use study. The provider uses a series of complex calculations to average out the utility use over a year.
To schedule a predominant use study in Michigan, contact the team at Business Name. Information and details on all of our services is found at Website URL.
