A Predominant Use Study is an effective way for an Indiana business involved in manufacturing or processing to recoup a percentage of their utility costs through a tax refund. The amount of the refund is based on the detailed finding of the study.
As with any tax refund, it is critical the Predominant Use Study is accurate. The study should include supporting documentation, data, and details to verify the information. Even for a simple process in a small facility, the complexity of these studies can be overwhelming to complete in-house.
Hiring an outside service to provide a Predominant Use Study for an Indiana business increases the likelihood of a successful claim. Doing so allows an expert team to complete the study while freeing up internal team members to maintain focus on their own areas of expertise.
Costs and Tax Refund Potential
The cost of a study is based on the size of the facility and the number of energy-consuming devices. Energy-consuming devices in this detailed study include small devices such as lightbulbs and office equipment as well as large machinery directly linked to manufacturing and processing tasks.
Once completed, the study accurately reports the annual energy use across the facility. It also includes a breakdown of the energy used by various pieces of equipment, outlining the function of the machinery and the state-specific guidelines which govern the taxation of its utility usage.
The tax refund most businesses receive covers the cost of the study. Processing and manufacturing facilities use the study results to reduce utility and energy use, further adding to the advantages.
To learn more about the tax advantages of a Predominant Use Study in Indiana, talk to the team at B. Riley Financial. More details can be found at brileyfin.com.