A predominant use study in Pennsylvania is essentially an evaluation of the natural gas and electricity that your company consumes. Through this predominant use study in Pennsylvania, you could potentially qualify to receive a local or state sales tax exemption. Customers who qualify will not only receive tax exemptions on future purchases but may also qualify for recovery of previous sales tax expenditures.
How Do You Qualify?
Approximately 30 states have passed a law that makes it possible for businesses to qualify for sales tax exemption after submitting a predominant use study. Pennsylvania is one of these states, which means if it is revealed in the study that more than half of your electric and natural gas usage qualified, you may be given sales tax exemption status.
Which Industries Qualify?
There are a number of various industries that may qualify for tax exemption status following a predominant use study in Pennsylvania. The potentially eligible industries include:
- Fabrication and manufacturing
- Assembly factories, bakeries, food and beverage processing
- Assisted living facilities, nursing homes, and retirement homes
- Apartment complexes, condominiums, mobile home parks, and RV parks
- Mining, golf courses, oil and gas operations, horticultural and agricultural uses
- Infrastructure repair operations, such as aircraft engine repair and railroad
- Natural defense operations
In order to get the most out of a predominant study in Pennsylvania, you may want to consider hiring a consultant. Having someone who understands all of the minor details will help while providing you the further information regarding the qualification process and predominant use studies in the area. If you are interested in learning more about a predominant use study in Pennsylvania, we are here to assist at B. Riley Financial, Inc. For more details, visit us now.
