Essential Information About the Predominant Use Study in Pennsylvania

by | Sep 19, 2022 | Financial Services


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If your company manufactures, fabricates, or processes physical goods, you may qualify for a sales tax exemption on your utility bills. While not all companies can receive the exemption, completing a predominant use study in Pennsylvania is critical. A certified professional monitors your energy usage and determines your company’s eligibility.

Who Qualifies

A predominant use study in Pennsylvania is required to determine your eligibility. Companies that manufacture or process products are likely to qualify. Electricity usage for farming, mining, printing, processing, manufacturing, and other processes may be eligible for an exemption based on the results of your study.

Study Requirements

While conducting your predominant use study in Pennsylvania, a qualified professional will determine whether your company meets the requirements. They will monitor each electricity meter and determine which percentage of energy is used by qualifying equipment and processes. They will average the amount over 12 months to improve accuracy. You will be deemed sales tax exempt from the percentage of energy used for qualifying purposes.

Statute of Limitations

A predominant use study in Pennsylvania provides tax-exempt status on future bills, but it doesn’t end there. The state allows companies with a qualifying study to claim exemptions on bills paid over the past three years. Back-dating the tax-exempt status saves companies significant money.

If you need a predominant use study in Pennsylvania, visit the website of B. Riley Financial now.

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