If you haven’t qualified your business for a tax exemption on your energy use, you could be missing out on critical tax breaks. A predominant use study in Wisconsin is necessary to determine if you qualify and calculate the percentage of your energy use to provide a partial tax exemption based on your per-meter use. The following will explain the basics of this process to help you make an informed decision.
Account for All Your Usage
Your predominant use study in Wisconsin will take your overall energy usage into account. They will identify which equipment or processes qualify for an exemption and determine the percentage of your energy use that applies to the permitted equipment and processes. Their team uses a complex formula to determine the annual usage of each device, giving you the tax exemption percentage.
Qualify for Reimbursements
In addition to determining whether you qualify for a tax exemption on your current and future utility bills, a predominant use study in Wisconsin can also look at your past use. State law allows companies to reclaim the designated percentage of their utility tax exemption up to 24 months back. Your evaluator will help you determine if you can get reimbursed for past payments.
Keep Your Status Updated
If your business changes alter your energy use, you may require a new predominant use study in Wisconsin to continue qualifying for the appropriate exemption. Some situations that may call for a reevaluation include purchasing new equipment, expanding your business operations, and moving to a new location. Completing a new study will ensure you are getting the right tax exemption to prevent underpayment or other penalties in the future.
Resource Box: If you need a predominant use study in Wisconsin, visit the B. Riley Financial, Inc. website to schedule an appointment.