Saving money on your operating costs is one of the best things you can do for your business. While there are many ways to achieve this goal, one way some companies are unaware of is to complete a predominant use study in Missouri. This study can grant you tax-exempt status on your utility bills for the energy used by qualifying equipment.
What Companies Qualify
Each state sets rules for which types of companies qualify for tax exemptions on their utility usage. In Missouri, only manufacturing companies can qualify for this program. Manufacturing companies can complete a predominant use study in Missouri to evaluate how much energy their machinery uses to create the products they sell. This information will dictate whether they qualify for tax-exempt status.
Which Utilities Are Tax Exempt
A predominant use study in Missouri will look at the percentage of use for qualifying equipment across various energy and fuel areas. In this state, manufacturers can qualify for exemption status on electricity, gas, water, coal, water, and more. During the study, the company you choose will measure your usage over a specified period to determine your tax exemption percentage. The exemption can be backdated up to 10 years.
How Do You Qualify
A predominant use study in Missouri looks at how energy is used. Not all of your energy usage will qualify for tax exemption status. To qualify, the utilities must be used for manufacturing or producing a product, processing recovered materials, or in research and development for new products. Any other energy or utility usage doesn’t qualify.
Resource Box: If you’re interested in a predominant use study in Missouri, visit the Business Name website to schedule an appointment.
