n several states, including Indiana, businesses can choose to complete a predominant use study in Indiana voluntarily. Trained inspectors complete the study to determine the use of utilities in qualifying industries.
Also known as a utility study, the goal of the process is to determine what processes off each meter qualify for a reduction in the state and local utility taxes. Indiana offers a 100% reduction in these taxes if the study shows that the use of the specific processes on the given meter is more than 50% exempt. This includes natural gas, electricity, and water meters. In cases where the exempt usage is less than 50% on the meter, a partial refund equal to the exempt percentage is available.
In addition to current and future reductions of 100% of these utility taxes, the business can also claim a refund for the past 36 months of overpayment for the taxes based on the predominant use study.
The Process
Inspectors from the company hired to complete the use analysis will arrive on-site and inventory all equipment and usage on a meter-by-meter basis. This can be completed at any time, including slow or peak production times. All data collected is averaged over time using past records and current analysis.
The state of Indiana sets forth the specific format used in the report. The company completing the predominant use study compiles the data, submits the reports, and requests the refund. They also manage all questions and work on behalf of the business to process the refund and ensure the sales tax exemption is in place with all qualifying utilities.
The predominant use study experts at Business Name can assist you with your study in Indiana. Additional information can be found by visiting their website. |