Project Consulting Solutions

Corporate Tax Department Service

Strategic Tax Review

Tax Credit & Incentive Review

Export Tax Incentives

Captive Insurance Management

Customs Duty Drawback Recovery

Cost Segregation Studies

Meals & Entertainment Limitation Studies

FAS 109 Accounting for Income Taxes

FIN 48 Accounting for Uncertainty in Income Taxes

Real Estate Investment Trust Tax Services

Energy Solutions

Energy Tax Deductions

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Predominant Use Study

What Is A Predominant Use Study?

Many states offer utility tax incentives to encourage companies to operate facilities in their state. The qualifications for these incentives vary from state to state. However, most states require that the majority of consumption for each utility (e.g. electricity, natural gas, water, propane) be used directly for a qualifying activity (e.g. manufacturing, agriculture, long-term housing). This is referred to
as “predominant use”.

To prove predominant use, a predominant use study must be performed. A predominant use study is similar to a traditional energy audit. However, the end result of a predominant use study is the facility’s overall percentage of exempt utility usage. This percentage is then used to determine what level of exemption the facility qualifies for.

A predominant use study must be both accurate and comprehensive in order to minimize risk exposure. Centerprise Group distinguishes itself from other firms by using only certified energy auditors to perform usage studies. By going the extra mile, USTC ensures the highest level of accuracy and the lowest level of risk exposure for its clients.

Do I Need A Predominant Use Study?

In general, a predominant use study would be needed if one or more of the following applies:

What Other Benefits Do Predominant Use Studies Have?

Because of Centerprise Group’s comprehensive approach, our predominant use studies have applications beyond utility tax exemptions and refunds. Centerprise Group can organize the data collected from your facility by cost center, product line, or any other factor. This allows our studies to form the basis for a traditional energy audit and aid management in the following
supplementary ways:

Exemptions & Refunds

Who Qualifies For An Exemption From Utility Tax?

There are a number of states where legislation exists for utility sales tax exemptions. Companies located in these states can receive an exemption from utility sales tax if they meet the state’s requirements. Each state has its own set of parameters, but these are the most
common requirements:

How Much Of A Refund Can I Expect?

Companies that qualify for an exemption from utility tax also qualify for a refund. The amount of the refund is affected by three main factors: