Sales Tax Exemption Studies

We provide a service to manufacturing businesses to obtain utility sales tax exemption certificates and to recover past utility sales tax payments as allowed by state law. This can be accomplished for both electricity and natural gas purchases. We aggressively pursue all savings and recovery opportunities to ensure maximum savings to our customer.

Approximately 30 states have enacted tax laws which allow certain manufacturers an exemption or reduction of otherwise applicable sales tax. It is the obligation of a utility company to charge sales tax to all customers since the end use of the utility’s electricity and/or natural gas is not known. We can perform a study that will show this end use is a tax exempt process, thereby allowing your company an exemption from state sales tax on electric and natural gas utility payments. The tax exemption must be thoroughly documented to avoid recourse from states. Although varying from state to state, the core of this documentation is a Sales Tax Exemption conducted by an independent engineering company such as our firm, which demonstrates the uses of energy in your facility. We validate and support this study with our staff of accounting and engineering professionals.

Hillhouse Power Solutions eliminates all documentation liability for your organization. We will interface with all utility and state personnel as needed to obtain exemption certificates and recoup previous utility sales tax paid as allowed by state law. We provide the necessary documentation, supported by the required engineering and accounting analysis, to remove this tax burden from your company and recover back taxes paid. In addition, this exemption/ reduction can add thousands of dollars in future savings.

If we find that your facility does not qualify for an exemption/reduction, there is absolutely no cost to your company. Any recovery comes directly to your company, and you simply remit our fee from this sum. We assume all engineering and accounting workload. We just ask that you provide us with the necessary information we need to perform the documentation.

Our fee is based on our performance. We are only compensated when we are able to obtain a tax recovery at your location. There is no fee for future sales tax avoidance that you would otherwise be charged. For us to proceed we will need the following:

• An authorized signed copy of our basic Agreement.
• Copy of the previous monthly electricity and natural gas bills, per meter utilized in the manufacturing process.