Most businesses search for ways to save money on their operating costs. By reducing operating costs, companies can focus more of their funds on growing their businesses and increasing their profits. One way many companies miss is through a predominant use study. Understanding when you should get one will help you maximize your savings.
You’ve Never Had One
Every state has unique requirements to qualify for a tax exemption on utility costs. If you’ve never received a predominant use study, you could be missing out on valuable savings. A certified contractor can provide the information you need to determine if your company qualifies for this type of tax exemption based on your state’s requirements. Some states allow you to reduce your tax liability by a percentage of use, while others offer complete exemption.
Expanding Your Business
As your business grows, things change, including your energy usage. Whether you’ve invested in new equipment for your existing location or have opened a new location, getting a new predominant use study could help you increase your tax exemption, depending on the rules in your state. It’s always critical to get a new study whenever something significant changes within your business to ensure your exemption is as accurate as possible.
Renewal
Not all states require you to renew your tax-exempt status with a new predominant use study. However, some states do require a new study to be completed every three years. It’s critical to make sure you understand the regulations in your state to ensure you don’t miss out on significant savings.
If you think you qualify for tax exemption, visit the B. Riley Financial website to schedule your predominant use study.
