Utility Sales Tax Exemption

The Exemption

What is the Utility Sales Tax Exemption?

The Utility Sales Tax Exemption can help businesses across a variety of industries save money each month on their electricity, gas, and water bills.

The Utility Sales Tax Exemption enables businesses across a variety of industries and states to save money each month on their utility bills, as well as receive a refund on the past few years of overpaid taxes. The primary businesses eligible for the exemption are manufacturers, restaurants, hotels, and agriculture operations. Regardless of the state the business is located in, a predominant use study will need to be performed on the business premises to identify the exact percentage of utility that qualifies for the exemption. Utility being used directly in the production or service process will qualify for the exemption, while utility used for non-production or service processes will be taxable. Identifying what portion of utility usage qualifies for the exemption can be difficult – that’s why SmartSave is here.


SmartSave can help!

SmartSave exists to make the saving process as easy, accurate, quick, and profitable as possible. Contact us and we would be happy to answer any questions you may have regarding qualifying your company for the exemption.


How much does it cost?

SmartSave only gets paid out of the savings that are generated for you. If we don’t save you money, you pay absolutely nothing.


How You Save

How the Exemption Saves You Money

Taking advantage of the exemption enables a business to save money in two ways.

Savings Calculator


Eligible business can retrieve a refund on the past 2-4 years worth of overpaid utility sales tax. This refund is either in the form of a check or a credit toward future utility usage. The size of the refund varies based upon the total utility usage during the statute of limitations. Find out what your refund amount could be by using our Savings Calculator!

Monthly Savings

Once approved for the exemption, businesses see either a reduction or elimination of their utility sales tax burden (varies by state, industry, and study results). These monthly savings continue indefinitely in most states – though some states do require renewals.

Applicable to Select Businesses

The Utility Sales Tax Exemption allows select businesses to claim an exemption on their electricity, gas, and water bills if they can demonstrate that these utilities are used in the production of a product or taxable service. All states that offer the Utility Sales Tax Exemption require that a predominant use study, or more simply, an Energy Study(^tm), be performed on the business location to identify the percentage of electricity, gas, or water that is considered “consumed in the production process”.

Utility Tax Exemption Process

In most states, the process required to qualify for the exemption can be complex, with a low tolerance for reporting error – and significant consequence for material mistakes. Because of this, many businesses forgo the opportunity altogether.
That’s where SmartSave comes in! With years of experience and a 100% success rate for its clients, SmartSave makes saving through the Utility Sales Tax Exemption easier than ever.

Qualifying for the Tax Exemption

SmartSave’s engineers and savings specialists lead the way in helping companies qualify for the Utility Sales Tax Exemption. Our experts bring years of experience and proprietary technology to the table, getting your company maximum savings in the shortest timeframe possible.

Smart Save

Curious how much you can save?

Visit our Savings Estimator to find out!