The Benefit of a Predominant Use Study

With Texas sales and use tax rates being 6.25% the cost of electricity and natural gas can be considerably reduced by completely eliminating the applicable taxes at a facility that qualifies under the Texas sales and usage tax exemption guidelines. Additionally, significant refunds on sales tax for up to four years retroactively, could be available to the client after the completion of a Predominant Use Study. Utility Consultants & Associates is here to conduct a comprehensive Predominant Use Study for your manufacturing or residential provider business.

Who Can Benefit from a Predominant Use Study?

Listed below are some of the types of facilities the Texas energy sales tax exemption applies to:

• Any type of manufacturing facility which includes, fabrication facilities, assembly, and/or processing plants ranging from small shops to major industrial facilities. For example, print shops, services dealing with wood, plastics, & clay products, electronics and semiconductor manufacturers, as well as plants trading in pharmaceuticals & medical products. Not to mention, machine shops, chemical plants, refineries, cathodic coating, steel & textile processors and a wide diversity of other industries.
• Bakeries and food & beverage processors.
• Nursing homes, assisted living facilities, retirement homes, and Alzheimer units.
• RV & mobile home parks with the average tenant staying more than thirty days.
• Condominium buildings and apartment complexes.
• Horticultural and agricultural facilities which include, irrigation providers, feedlots, livestock and pet food producers, fruit & vegetable growers, and plant nurseries.
• Golf courses considering the use of electricity for charging golf carts and irrigation.
• Facilities dedicated to repairs to railroads, jet aircraft engines, and any national defense related activities.
• Mining operations for oil and gas.
• Digital Television broadcast towers.
• Film and media production firms.
• Third party data centers

What exactly is a Predominant Use Study?

In Texas, the comptroller's office tax codes (TAC Title 34, Part 1, Chapter 3, Subchapter O, Rule 3.295) mandates a facility be qualified by way of a Predominant Use Study conducted by a professional, licensed firm such as Utility Consultants & Associates. Following are some examples of a Predominant Use Study and how they pertain to certain industries:

• In a manufacturing operation the percentage of electricity and natural gas used directly for the manufacturing process is weighed against the total usage of the facility.

Why Choose Utility Consultants & Associates to Perform Your Predominant Use Study?

Our clients are all extremely satisfied with our service and we invite you to ask them. When you inquire as to why they chose Utility Consultants & Associates, you are very likely to receive a plethora of different answers; but all will agree on one thing, Utility Consultants & Associates delivers! With our services you can take comfort in knowing we:

• Are fully insured
• Have complete knowledge of current tax codes
• Have provided 75 years of Engineering Excellence
• Have a solid reputation with the Texas Comptroller's Office
• Have performed extensive studies in virtually every industry
• Will defend your study at our own expense

For more information visit https://www.utilityconsultantsinc.com/