Sales Tax Exemption

Predominant Use Studies

Many states allow manufacturing companies to avoid paying sales tax on electricity and natural gas purchases. We can advise customers if they qualify for a sales tax exemption, conduct the state-mandated on-site study, and file the proper forms with the state and with utility companies in order to achieve exemptions from paying these taxes. In many cases we can even recoup past sales tax payments back to our customer, after completion of the study.

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We provide a service to manufacturing companies, and to other eligible businesses designated by the state. We provide utility sales tax exemption certificates and recover past utility sales tax payments as allowed by state law. We aggressively pursue all savings and recovery opportunities to ensure maximum savings to our customer. Approximately 30 states have enacted tax laws which allow certain manufacturers and others an exemption or reduction of otherwise applicable sales tax. It is the obligation of a utility company to charge sales tax to all customers since the end use of the utility’s electricity and/or natural gas is not known by them. We can perform a study that will show this end use is a tax-exempt process, thereby allowing your company an exemption from state sales tax payments. The tax exemption must be thoroughly documented to avoid recourse from the state. Although varying from state to state, the core of this documentation is a Sales Tax Exemption study conducted by an independent engineering company such as our firm, which demonstrates the uses of energy in your facility. We validate and support this study with our staff of accounting and engineering professionals.

Hillhouse Power Solutions eliminates all documentation liability for your organization. We will interface with all utility and state personnel as needed to obtain exemption certificates and recoup previous utility sales tax paid as allowed by state law. We provide the necessary documentation, supported by the required engineering and accounting analysis, to remove this tax burden from your company and recover back taxes paid. In addition, this exemption / reduction can add thousands of dollars in future savings.