About Indiana utilities sales and use tax

In order to help the state economy, Indiana began offering state sales tax exemptions on tangible personal property that is used in manufacturing, fabricating and processing. This law invites large and small businesses into the state, giving jobs to the people of Florida.

The state of Indiana recognizes electricity and natural gas as tangible personal property. Therefore, certain businesses may qualify for exemptions from paying state sales tax on their usage of electricity and natural gas. If you are a manufacturer, fabricator or processor and you spend over 50% of your utilities on your process, you may get an exemption from both utilities as well as a refund of paid taxes.

How much is the refund?

After Utility Discounters reviews the billings from the electric and natural gas utility companies and analyze the electrical and gas usage in a "utility study", then we can apply for the refund. The state of Indiana will give refunds based on the past two years as well as the current month to date. The actual amount, of course, depends on the amount of kilowatt hours used.

In order to prove your exemptable and non-exemptable electricity and natural gas usage, you will need a Predominant Use Study.

Utility Discounters will perform a balanced utility study in order to show the state the exact amount of exemptable use. This will allow us to file for tax exemption status on your utilities.

Do I qualify for this state sales and use tax exemption and refund?

State Government links about this law.

Some links may require Adobe Reader in order to download and read. You get the free viewer software at Adobe's web site.

Sate Commissioner's statement about sales tax exemptions on utilities. (.pdf)

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