Utility Sales Tax Exemption
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Who we are
What is a Utility Sales Tax exemption?
Align specializes in obtaining utility sales tax exemptions and refunds, and our process is straight-forward and requires minimal involvement from your team. We do the work - you benefit:
Process
Who we are
Which states are eligible?
Partnership
Frequently Asked Questions - Utility Sales Tax
What industries qualify for the exemption?
- Manufacturers
- Industrial Processors
- Recyclers
- Automated-Assembly Fabricators
- R&D Facilities
- Agriculture
- Mining Facilities
- Restaurants (select states)
- Nonprofit Organizations (select states)
Which utilities are included in the exemption?
- Electric
- Natural Gas
- Water
- Steam
- Industrial Gases
How much can we expect to save?
Expected savings depends on the state in which the facility is located.
Some states have what is called “Predominant Use” exemption. This means that as long as a certain percentage of the utility is used in production (typically 50% or 75%), the entire meter is fully exempt from sales tax.
Some states have a “Percent of Use” exemption. This means that however much the utility is being used in production, the sales tax on the meter is reduced by that percentage. For example, if Align’s meter engineering study determines that the meter is used 65% in production, the monthly sales tax is reduced by 65%.
Under either scenario, the savings can be substantial. Our technical experts can determine with accuracy the exemption for which your facility will qualify.
