Completing a predominant use study in Pennsylvania is a wise decision for any business operating in the manufacturing, processing, agricultural, or other qualifying industry. This study traces the use of electricity, water, and natural gas by meter in the qualifying processes.
This tracing involves determining each appliance, piece of equipment, or other type of utility use at each meter. This use is then evaluated to be qualifying for the exemption or non-qualifying. The percentage of qualifying use on each meter is used as the percentage of tax exemption for these utilities in the future.
In addition, the state law allows for the business to apply to the utility for the same percentage as a refund. This refund covers the 36 months prior to the submission of the refund request from the predominant use study in Pennsylvania.
What to Consider
The company providing the predominant use study will need to gather documents, including the billing information for the utility for the previous 12 months. This information will be used by the team completing the predominant use study in Pennsylvania.
The study will not disrupt typical operations. The team will complete the data collection and necessary documentation without downtime or taking manufacturing or processing offline.
Timing the Study
Sometimes businesses in Pennsylvania assume that the timing of the study will influence the use of the utility. This is not the case, as the data from past billing cycles is used to average the utility consumption for qualifying equipment and processes. This means the study can be completed at any time of the year with the same results.
If you have any questions about a predominant use study in Pennsylvania, talk to the experts at Business Name.
