Your energy bills include sales tax, but companies can get a tax exemption based on how much certain equipment or processes are used in some situations. If you think you qualify for an exemption, you need a predominant use study in Michigan to determine if you qualify and how much you can expect to save. A professional inspection gives you peace of mind that you’re saving money to protect your business operations.
How the Study Works
When you hire a company to complete a predominant use study in Michigan, they will closely look at your overall energy usage and the equipment and processes your business uses. They use a complex calculation method to determine how much of your energy use can be attributed to the allowed equipment and processes. This calculation indicates the percentage of your sales tax you don’t have to pay. This tax exemption can save your business money on your energy bills to reduce your operating costs.
Repayment for Past Taxes
If you get a predominant use study in Michigan, the company you hire may look at your past usage to help you determine if you qualify for reimbursement for taxes you have already paid. In Michigan, you may qualify for a refund that goes back up to 48 months. If you’re unsure whether you can claim previously paid taxes, talk to your evaluator about your options. They can help you determine if you can get more money back.
A Fair Process
To ensure you get a fair appraisal for your tax exemption, your predominant use study in Michigan should look at your average energy use over the past 12 months. This process takes seasonal fluctuations into account, giving you the most accurate tax exemption assessment. Since your tax exemption applies to a specific percentage of your energy bill, it’s essential to ensure it’s as accurate as possible.
Resource Box: If you need a predominant use study in Michigan, visit the Business Name. website to schedule an appointment.
