State of Michigan

Michigan Utility Sales Tax Exemption

Michigan allows businesses to claim an exemption on the portion of their utility used in industrial processing, which includes but is not limited to production or assembly, research & development, engineering, re-manufacturing and storage of in-process materials. Michigan Dept. of Treasury – Industrial Processing Manual.

Michigan Dept. of Treasury – Industrial Processing Manual.

Michigan Sales Tax Exemption Certificate

The Exemption Form 3372 is the document that must be filed in Michigan in order for a business to claim the Utility Sales Tax Exemption. This form is valid for up to five (5) years and then may be renewed.

Energy Study Requirement

In Michigan, a detailed energy study must be performed to identify the exact percentage of utility that is exempt from sales tax. This includes calculating the annual consumption for each device that is consuming the utility and then distinguishing between production devices and non-production devices.

Our Process
01. Discovery

SmartSave investigates client’s current utility situation, and quickly identifies if the company is eligible to save on its utility sales tax through the exemption.

02. Energy Study

A SmartSave energy specialist performs an in-depth study at the business location to determine the exact proportion of energy use that is exempt from taxation.

03. Request

All necessary information is compiled into a report and submitted to the required utility companies and state agencies. SmartSave works hand-in-hand with these entities to ensure that all reports are accurate and compliant with statute.

04. Certification

Once the exemption request is approved, your company receives a refund on the past 2-4 years of overpaid utility sales tax, and stops paying sales tax on all certified production items, generating significant savings for the business each month moving forward.

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