By Aiden ArmstrongA predominant use study in Wisconsin could create opportunities for many organizations to reduce taxes. That includes manufacturers and industrial processors who have locations operating in the state. These organizations may qualify for exemption of local sales tax on the purchase of natural gas, water, and electricity. Here is what you need to know.
How Does the Tax Credit Apply?
A predominant use study could shed light on the qualifications of companies for this tax exemption. This tax exemption falls under and is authorized by Wis. Stats. ยง 77.54(30)(a)6.
In order to qualify, organizations must create a list of all pieces of equipment and appliances used within it, including production and non-production items that use that utility. They then must create an annual consumption of each of those items. If any part of the process is not calculated properly or there are any classification issues with the utility usage, there is cause for denial of the tax exemption.
What Has to Be Done
The predominant use study in Wisconsin is a straightforward product, but it is time consuming and requires a careful eye to ensure it is completed properly. Hiring an organization to handle this work for your company is one of the best ways to ensure a thorough process. Done well, this type of tax exemption could save the company a significant amount of money both on future purchases of those energy resources and as long as three years of potential tax refunds for their previously paid taxes. When looking for a predominant use study in Wisconsin, look to Business Name. as they have team of professionals that can help you.
