Operating a business requires careful attention to detail to cut costs wherever possible without compromising production or your services. One way you can do that is by qualifying for utility tax exemptions. With a predominant use study in Michigan, you can reduce your costs and boost your profits. The following will help you learn what to expect from one of these studies.
Evaluate Overall Energy Usage
Your full energy use won’t qualify for a tax exemption. A predominant use study in Michigan will evaluate your overall usage and determine how much energy qualifying equipment uses throughout the month. This calculation will indicate the percentage of your utility bill that qualifies for tax exemption, reducing the amount you must pay on your monthly bills.
Repay Back Taxes
When you order a predominant use study in Michigan, you may also be eligible for a lump sum payment for taxes you paid on qualifying energy use in the past. This refund can date back up to 48 months, giving you a large repayment that you can put back into your business. However, it’s critical to talk to your experienced contractor to find out if your past bills qualify and how you can get the most from your tax-exempt status.
A Fair Process
While looking at your energy usage over a month can give a good indicator of your qualifying energy use, it’s best to get a predominant use study in Michigan that averages your energy use over 12 months. Calculating an average use can give you a larger tax deduction, particularly if you have fluctuating costs, depending on the time of year.
Resource Box: If you’re thinking about getting a predominant use study in Michigan, visit the Business Name website to learn more.
