Why You Need a Predominant Use Study in Michigan
As a business owner, it’s critical to find as many ways as possible to reduce your operating costs. Some companies can do so by completing a predominant use study in Michigan. This study will evaluate your energy usage and provide a reduced tax rate on the energy you use for certain aspects of your operations.
A Balanced, Unbiased Study
When you get a predominant use study in Michigan, you can expect a balanced, unbiased study of your company’s energy usage. Instead of simply looking at the current month of usage, they will evaluate the past 12 months and generate a report that averages your use over that time to ensure you’re saving the maximum amount of money. By looking at the bigger picture without outside influence, you can get the best results from your study.
Eliminate Sales Tax
The primary focus of your predominant use study in Michigan is to eliminate the sales tax you pay on the energy you use to manufacture products or provide certain services for your company. After completing your study, you will have the documentation you need to remove much of the sales tax you would normally pay on your utility bills, reducing your business’s operating costs.
Electricity and Natural Gas
A predominant use study will look at your business’s consumption of electricity and natural gas. While not all operations will qualify for the tax exemption, hiring an experienced company to complete this study will allow you to determine the amount of electricity and natural gas you use for qualified operations. The remainder of your bill will continue to be charged taxes, but the appropriate proportion will be removed.
If you need a predominant use study in Michigan, visit the B. Riley Financial website to schedule an appointment.