Reducing operating costs is critical for every business. To be successful, companies need to find the best ways to save money to increase their profits, which can then be used to grow the business. One of the most effective ways to accomplish this goal is to complete a predominant use study in Michigan. Based on the results of this study, companies may qualify for an exemption on state taxes charged on their utility bills.
The Study Process
When companies request a predominant use study in Michigan, they will work with a professional engineer who will use state-of-the-art equipment to measure energy usage for qualifying machines. Each meter used within a business requires an independent study. The best professional engineers will monitor energy use for a period and factor in the one-year average usage to come to an accurate estimate of qualifying energy usage.
A High Level of Accuracy
Accuracy is critical in a predominant use study in Michigan. When companies turn to a professional engineer to complete their study, they can expect a high level of accuracy with the results, typically around half a percent. Companies can rest assured that they can maximize their tax savings when they work with a qualified contractor to complete their study.
A Pro-Rated Exemption
One thing many companies don’t realize about a predominant use study in Michigan is that it also applies to previous utility bills. In Michigan, completing one of these studies allows a company to file for a refund of the qualifying amount of sales tax for a period up to four years before the study took place. This tactic allows companies to save even more money.
Resource Box: If you’re interested in getting a predominant use study in Michigan, visit the Business Name website to learn more.
