Predominant Use Study in Michigan

A predominant use study in Michigan could prove to be a valuable investment for many organizations. It is a type of evaluation of the company’s natural gas and electric consumption. In some states, such as Michigan, it may be possible for you to eliminate the sales tax you pay at the state and local levels if you meet the qualifications. This is a part of a sales tax exemption credit many organizations qualify for in the state.

What You Need to Know

Many facilities in Michigan qualify for the Utility sales tax exemption. This falls under MCL 205.54t(1)(a) authorization. This means that an industrial processor may be able to qualify for exempt status for paying sales tax for the amount of natural gas and electric consumption related to their industrial processes. This could include electricity, propane, steam, and gas used in the industrial processing functions or as it applies to operating industry processing machinery or other equipment.

Why a Study Matters

To qualify for this exemption, organizations have to provide evidence that this is the case. In a predominant use study in Michigan, all equipment must be considered, including both non-production and production. The annual consumption of each must be determined. Any mistakes here mean that the organization is unable to receive the exemption.

Working with an organization that specializes in this area to conduct a predominant use study in Michigan is the best way to ensure the process goes well and that there are no mistakes that could cost you that exemption. When looking for a predominant use study in Michigan, look to B. Riley Financial, Inc., as they have team that can meet your needs.

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