In any type of business, reducing operational costs is a key factor in staying competitive. Businesses that are involved in manufacturing, production, or processing, as well as other eligible types of businesses, can assist in reducing their overhead by completing a predominant use study.
What is Involved?
A predominant use study is designed to evaluate and assess the amount of utility use based on a per-meter consideration. The use of qualifying machines, systems, or applications off a meter is determined through an analysis of the facility.
From this information, and depending on the state, the business can apply to receive forgiveness of utility taxes. This can be a 100% forgiveness on future utility taxes on all qualifying meters, or it may be a percentage of use based on the study’s findings. In addition, the business can apply for a refund of these taxes paid over a specific period of time.
The Benefits to the Business
The details from the predominant use study are essential in obtaining approval for the removal of future utility sales tax and the refund. The refund and ongoing tax savings lower the cost of operation now and in the future.
For most businesses, the reduced future costs from the utility sales tax exemption and the refund cover the study’s cost. In addition, the business may find ways to increase efficiency and decrease energy use, further lowering their overhead.
Let the experts at B. Riley Financial provide a predominant use study for your business. To schedule an initial consultation, see us at brileyfin.com.