Companies want to save money however they can. Qualifying for tax exemptions is an excellent way to reduce operating costs and leave more money in business accounts. A predominant use study in Texas can determine whether businesses qualify for a sales tax exemption on utility bills. Before requesting a survey, learn how they can help.
The Testing Process
When requesting a predominant use study in Texas, a certified professional will install monitors to determine energy use by qualifying equipment. This analysis will take place over an extended period and will average the use over 12 months for a more accurate assessment. Each meter must exhibit that qualifying equipment uses more than 50 percent of the consumed energy.
What to Expect
After the predominant use study in Texas, you will receive a report and certificate if you qualify for the sales tax exemption. You must present this certificate to your utility company for tax-exempt status. Texas companies qualify for complete sales tax exemption. In addition to exemptions moving forward, companies can deduct sales tax paid over the past 48 months.
Benefits of Tax-Exempt Status
Qualifying meters are eligible for tax-exempt status after a predominant use study in Texas. Companies receive an exemption for the state, city, county, and MTA taxes, providing significant savings companies can use to improve their processes.
If you want to schedule a predominant use study in Texas, visit the Business Name website.
