Throughout Missouri, manufacturing companies are entitled to tax exemptions based on their use of gas, water, electricity, and other energy sources. But manufacturing companies aren’t the only businesses eligible for these kinds of exemptions.
Regardless of their industry, the business must complete a Predominant Use Study to claim a utility sales exemption. This study identifies the amount
of the given utility used in the production and manufacturing process. To complete the study, an engineer monitors each piece of equipment and their utility meters to determine if their utility use meets the guidelines set for in the Missouri Title X Taxation and Revenue statutes.
Completing the Study
The most effective way to complete a Predominant Use Study is through a third-party provider. These services have extensive experience in all aspects of the report based on the state reporting requirements. The study includes an inventory of all utility and energy-consuming devices and an estimate of their annual usage.
The report includes details such as load factors, device energy rating, operation time, and typical estimated annual utility and energy usage. The report provides a determination of the exemption or taxable status of each energy-consuming device within the facility.
The energy calculations in the Predominant Use Study can be complex. However, the results are highly beneficial to the business. In addition to the potential for the tax refund after the study, the company can also determine areas of energy and water inefficiencies in the facility, helping to save money now and in the future.
To learn more about scheduling a Predominant Use Study in Missouri, contact the team at Business Name. Information on our services can be found at Website URL.
