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Utility Sales Tax Exemptions

Exemptions (or reductions) are available in about three dozen US states. USTC is intimately familiar with the tax code in every state and has secured exemptions for clients that range in size from small firms to Fortune 500 companies. Our clients choose us because of our reputation for delivering the best possible results with minimum disruption to operations.

 

 

Who Qualifies for a Utility Sales Tax Exemption?

 

Typically, the exemptions are use-based. In other words, the qualifications are based on some type of statutorily exempt activity. Below are some examples:

Manufacturing Exemption
Manufacturing

The following states have exemptions available for businesses engaged in manufacturing, fabricating & processing:

 

  • Alabama

  • Arkansas

  • Connecticut

  • Delaware

  • Florida

  • Georgia

  • Indiana

  • Iowa

  • Kansas

  • Kentucky

  • Maine

  • Maryland

  • Massachusetts

  • Michigan

  • Minnesota

  • Mississippi

  • Missouri

  • Nebraska

  • New Jersey

  • New York

  • North Carolina

  • Ohio

  • Oklahoma

  • Pennsylvania

  • Rhode Island

  • South Carolina

  • Tennessee

  • Texas

  • Utah

  • Wisconsin

  • Wyoming

Agricultural Exemption
Agriculture & Horticulture

The following states have exemptions available for businesses engaged in agriculture & horticulture (e.g. farm irrigation, husbandry, dairy or poultry operations, timber harvesting, etc).:

 

  • Alabama

  • Connecticut

  • Delaware

  • Florida

  • Georgia

  • Indiana

  • Iowa

  • Kansas

  • Kentucky

  • Maine

  • Massachusetts

  • Minnesota

  • Mississippi

  • Missouri

  • Nebraska

  • New York

  • North Carolina

  • Ohio

  • Pennsylvania

  • South Carolina

  • South Dakota

  • Tennessee

  • Texas

  • Utah

  • Virginia

  • Wisconsin

  • Wyoming

Residential Exemption
Residential

The following states have exemptions available for residential facilities (e.g. long-term housing, apartment complexes, nursing homes, hotels, etc):

 

  • Connecticut

  • Florida

  • Iowa

  • Kansas

  • Kentucky

  • Maryland

  • Massachusetts

  • Minnesota

  • Missouri

  • Rhode Island

  • Tennessee

  • Texas

Mining Exemption
Mining & Drilling

The following states have exemptions available for businesses engaged in mining or drilling:

 

  • Indiana

  • Missouri

  • New York

  • Pennsylvania

  • South Carolina

  • Texas

  • Utah

Research & Development Exemption
Research & Development

The following states have exemptions available for businesses engaged in research & development:

 

  • Maryland

  • Massachusetts

  • Michigan

  • Minnesota

  • New York

  • Pennsylvania

Restaurant Exemption
Restaurants & Food Service

The following states have exemptions available for restaurants and/or businesses engaged in food services (e.g. grocery stores, bakeries, etc):

 

  • Colorado

  • Indiana

  • Kansas

  • Ohio

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