When it comes to reducing utility costs in manufacturing, processing, and production types of businesses, one of the most effective options is a predominant use study. This is a specialized study that measures and assesses the use of each utility on a meter-by-meter basis throughout the facility.
All states have their own guidelines and requirements for a predominant use study. For example, in Missouri, businesses and commercial properties can claim a specific percentage of the meter for water, natural gas, and electricity.
The Predominant Use Study Basics
The predominant use study in Missouri typically includes a third-party provider to complete the study. This is a complex and detailed survey and reports of all equipment and devices on the property that use water, electricity, or natural gas. The report requires, in detail, what equipment is using the utility from the given meter and if that equipment qualifies as a tax exemption.
The law requires that every piece of equipment, including those used in non-production or processing types of activities, must be listed and classified as qualifying or not qualifying.
Based on the findings of a predominant use study in Missouri, the current and future utility taxes are decreased by the qualifying percentage. In addition, any past utility taxes paid within a specific period are refunded by completing the state’s claim form.
A predominant use study in Missouri will provide relief from state utility taxes. It cannot be used to offset any local taxes.
B. Riley Financial provides businesses with a predominant use study in Missouri that meets all legal requirements for approval. To find out more, see us at brileyfin.com.