Utility Consultants writes hundreds of predominant use studies each year. The reasons people reach out to Utility Consultants for a predominant use study typically falls into these situations:
- I’ve changed electric providers and they said I need a predominant use study.
- I’m being audited and need a predominant use study.
- My electric company is being audited and they sent me a letter saying I need to get a predominant use study.
- New facility or new meter at existing facility requires a predominant use study.
What is a Predominant Use Study?
Texas Comptroller Rules 3.295 requires that a predominant use study document all uses of electricity or natural gas, both exempt and taxable, the times of usage, the energy used, i.e., volts, amps, phase, wattage or BTU rating, and duty factor of all load bearing devices. . The result is a comprehensive inventory of all devices which consume electricity and natural gas.
If the predominant use study shows at least 51% of electricity or natural gas is used in manufacturing, processing or for residential use, the utility is eligible for Texas sales tax exemption.
Utility Consultants performs a turnkey solution and will file for sales tax exemption with your utility provider and apply for a refund of 48 months of overpaid sales tax.
What does a Predominant Use Study Cost?
Utility Consultant’s fee for a predominant use study is based on the scope of work to perform the predominant use study. Factors considered are: square footage, KWH usage, type of industry and the method of filing for the sales tax refund.
You’ll find our price is hard to beat and our expertise unmatched.
What is the fee structure for a Utility Consultants Predominant Use Study?
Utility Consultants performs predominant use studies on a contingency basis, either as a percent of the sales tax refund or a flat fee. Regardless of the fee structure, you are not billed for the predominant use study until you receive your sales tax refund.
The exception to this is if you are currently tax exempt and need a predominant use study, then the cost is a flat fee.
Why should I trust Utility Consultants to do my Predominant Use Study?
Since 1987, Utility Consultants has written thousands of predominant use studies. To qualify for sales tax exemption Texas Comptroller Rule 3.295 requires a person with an engineering degree to validate the study. Our electrical engineers have over 65 years cumulative engineering experience.
Utility Consultants has represented our clients before Texas Comptroller auditors and Administrative Judges. We are proud of the fact we’ve never had a predominant use study denied. Texas Comptroller examiners and auditors are aware of our expertise. Customers choose us for our fair pricing, knowledge, and experience.
How much sales tax refund can I expect?
Based on Texas Tax Code, you are eligible for up to a 48-month sales tax refund. Utility Consultants will work with the Texas Comptroller and your utility provider to obtain the maximum amount of sales tax refund allowable.
Does a Predominant Use Study expire?
There are situations where you need to update your predominant use study.
- Change of Ownership
- Move to a new facility
- Significant increase or decrease in production equipment/hours.