Utility Discounters
Do I qualify for a state sales tax exemption and refund

If you have a nursing home or an apartment complex, click here.

For an immediate assessment of your energy situation explained in plain English, call us toll free at 1-866-937-0900. We will assess your situation and explain ALL of the options available to your facility. This call and assessment are free. If you prefer, you can send your questions by e-mail to info@utilitydiscounters.com. Below you will find a sample of the requirements from the different Departments of Revenue. They vary state to state and this is a small example of what each one separately specifies as a must..

There are many factors in determining if your business qualifies for a State Sales Tax Exemption and a refund on your electric and natural gas services.

Your facility must be making a physical or chemical change to tangible personal property for sale, or assembling or fabricating products for sale. Contact us for further details. If you are growing agriculture then the electricity and/or gas used to grow or change your product, including the watering system and any type of ripening room, is exempt.

Service companies do not qualify for state sales tax exemptions on their utilities unless they are a nursing home, assisted living home or an apartment complex.

Anything pumped, mined or otherwise extracted from the Earth qualifies for exemption. For example, if you use electricity to pump well water to wet your crops or to drill for oil then your usage qualifies to be audited to show where the use is. The different states say that, that sort of use is exemptable. Another example is if a golf club pumped water from a creek to water their greens, that energy used to pump the water is exemptable. The energy used at the clubhouse is not exemptable. If the sprinkler pump is separately metered, that meter can be exempted by law as an agricultural process. If it is tied to a meter that has other use on it, a Predominant Use Study can be done as long as you believe it is using more than 50% of the energy to pull something from the Earth.

It can not be a business that sells product for immediate consumption. This means all restaurants still have to pay the state sales tax. Some restaurants may still qualify if they sell in bulk to other retailers for sale. Contact for more details. One example would be Crispy Cream Donuts. They manufacture a large amount that is sold to grocers and other vendors. Those facilities would qualify based on percentages of sold on site as opposed to sold in bulk for resale. We are experienced in issues like these and are still able to expedite the process with the correct procedures.

In some states the square footage of the production areas has to be a certain percent larger than office, shipping and storage areas. There are other areas that fill in small percentages of the facility.

You can be a "rebuild shop" as long as the rebuilt equipment is bought by your company and sold as re-manufactured equipment. For instance, you can rebuild motors and transmissions as long as you sell them to new clients as rebuilt merchandise. You can not offer a service to rebuild a motor and return it to the same person.

We are highly trained in each of the states that have state sales tax exemption laws for manufacturers, fabricators and processors. The specifics differ from state to state. We are always training our people and we always have a state specific review before we visit your location.

Contact one of our energy management consultants for a free assessment of your situation in your state.

Utility Discounters - Does your facility qualify for a state sales tax exemption and refund? Energy procurement and predominant use studies to lower your electric and natural gas bills