Nursing Home Utility Tax Exemption
Nursing homes are eligible for a tax exemption on the portion of their utilities that are used for residential purposes. To determine how much utility is exempt, state agencies require that a predominant use study is performed on the business premises – that’s where SmartSave comes in. Our specialists are experienced in identifying exempt items in even the most complex of health care operations.
State Eligibility and Application
If you would like to learn more about how your state handles the Utility Sales Tax Exemption, then simply click on the link below and go to your state’s designated page. You will be provided with detailed information including eligibility, procedure, and state statute.
Qualifying Utility Usage
Nursing homes are allowed to claim the Utility Sales Tax Exemption on utilities that are used for residential purposes.
Every nursing home has a unique exemption profile and exemption devices should be analyzed on a case by case basis in order to determine an accurate exemption percentage.
- Electricity used to power the lighting and air conditioning in the guest room.
- Water used in the guest room through the sink, shower, and toilet.
- Gas used to heat the guest room.
- Electricity used to provide air conditioning and lighting in the hallway, reception rooms, and lobby areas.
- Water used in non-guest bathrooms and employee break rooms.
- Gas used to heat the hallway, reception rooms, and lobby areas.
SmartSave is Here to Serve
Detailed Energy Study
All states that offer the Utility Sales Tax Exemption require that either a detailed energy study or predominant use study be performed on the manufacturing facility to identify the percentage of electricity, gas, or water that is actually consumed in the production process.
Accuracy & Compliance
If the utility study is not performed with care a variety of consequences can arise, including denial of the application, state-imposed penalties and audits. Going down the path alone or with the wrong partner company can lead to marginal service and unnecessary hardships.
Streamline the Exemption Process
With SmartSave on your side, you can have peace of mind knowing that our certified specialists will conduct the energy study with laser-accuracy and per all State requirements, providing superior service at every stage of the savings process.