Predominant Use Study

In most states, a predominant use study (aka utility study) is required to qualify for a utility sales tax exemption and/or refund.

USTC has performed over a thousand studies across a wide range of industries. We are intimately familiar with the tax code in every state where utility sales tax exemptions exist. In addition, we stand behind our studies and provide ongoing support in the event of a sales tax audit as well as long-term document storage and retrieval at no additional cost.

To minimize risk exposure, a study must be both comprehensive and accurate. USTC exceeds the state’s requirements by using only licensed engineers to compile and certify our studies. Choosing USTC to perform your predominant use study ensures the best possible outcome.

What is a Predominant Use Study?

A predominant use study is an engineering report that analyzes your company’s utility usage. The purpose of the study is to determine whether or not a particular utility (e.g. electricity, natural gas) is being predominantly used for an exempt purpose (e.g. manufacturing, agriculture). Most states require predominant use in order to qualify for a sales tax exemption.

Why Choose USTC?

Performing a study can be quite complicated and time consuming, but more importantly, most states require or at least prefer that you hire a consulting firm like USTC. The state agencies feel that a third party is more likely to produce accurate, non-biased results.

So why should you choose USTC over one of our competitors? Here are a few reasons to consider:

Since our inception in 2005, USTC has performed over a thousand studies nationwide across a wide range of industries.
Our reputation and relationship with the utility suppliers and state agencies allows for a quicker, smoother filing process.
Our studies are compiled and validated by a licensed professional engineer.
All of our studies are stored on our secure server and backed up regularly. So if you misplace your study, all you have to do is contact us and we'll send you another copy.

What Does A Study Cost?

At USTC, we offer two options – shared refund or flat fee. Both options are based on scope of work. Some of the factors that can affect the scope of work include:

The size of your facility
The quantity of equipment
The location of your facility
Your industry

What Other Benefits Does a Study Provide?

Because of USTC’s comprehensive approach, our studies have applications beyond utility sales tax exemptions and refunds. USTC can organize the data collected from your facility by cost center, product line, or any other factor. This allows our studies to form the basis for a traditional energy audit and aid management in the following supplementary ways:

Understanding where major energy costs are being incurred
Identifying potential cost saving opportunities
Quantifying the energy usage for each piece of equipment, process, or cost center