Utility Tax Recovery — Recover Overpaid Taxes on Your Utility Bills
Many commercial buildings qualify for utility sales tax exemptions and have been overpaying for years. We find and recover those overpayments — on full contingency.
Why Most Buildings Are Overpaying
Most states with a sales tax provide exemptions for commercial and industrial utility consumption when the primary use of that utility is for qualifying activities — manufacturing, data processing, agricultural production, or similar purposes. This analysis is called a predominant use study. When a facility's qualifying use exceeds the threshold set by state law (typically 50%), the entire utility account may be exempt from sales tax.
The problem is that utilities bill every commercial account at the standard taxable rate by default. They have no visibility into how energy is actually used inside your building. Unless you proactively file for an exemption and provide documentation, the tax keeps accumulating on every bill — month after month, year after year.
Most building owners and managers are never told they may qualify. Accountants, property managers, and even energy consultants often overlook this because it requires specific knowledge of state tax code and utility tariff rules. When we identify a qualifying situation, state law typically allows retroactive refunds going back two to four years from the date of filing.
What We Recover for You
Utility-related tax overcharges come in several forms. We identify and pursue all applicable categories for every account we review.
Sales Tax Overcharges
State and local sales tax that was improperly applied to utility consumption qualifying for exemption under your state's commercial or industrial use provisions.
Utility Excise Tax
Federal and state excise taxes assessed on utility consumption that qualifies for exemption. These charges appear as separate line items and are often overlooked in standard reviews.
Municipal Utility Taxes
City and county taxes imposed on utility accounts that hold qualifying exemptions. Municipal tax rules vary significantly by jurisdiction and require local-level analysis.
Franchise Fees
Recurring franchise fee charges that were improperly assessed or that do not apply to exempt accounts. We review each fee category against applicable tariff language and exemption rules.
How the Recovery Process Works
From initial review to refund check, we handle every step. You provide access to your utility account information — we do the rest.
Eligibility Review
We analyze your utility accounts, building type, and end uses to determine whether a predominant use exemption is likely to apply. This review is complimentary and carries no obligation.
Predominant Use Study
We conduct a formal study documenting how your utility consumption is used. This includes metering analysis, equipment inventories, and operating schedules to establish the qualifying percentage of use.
Exemption Filing
We prepare and file the exemption claim with your utility and any applicable taxing authorities. This includes all supporting documentation required under state and local rules.
Refund Recovery
We pursue retroactive refunds for all eligible prior periods — typically two to four years of overpaid tax. We follow up with utilities and taxing authorities to keep your claim moving forward.
Ongoing Exemption
Once approved, we ensure the exemption is applied correctly to your account going forward. You stop overpaying immediately, and the savings continue indefinitely.
How We Get Paid
Our contingency model is straightforward: we earn a percentage of the amounts we actually recover for you. There are no retainers, no hourly rates, and no fees if we come up empty.
Is Your Building Eligible?
Utility sales tax exemptions are not limited to large industrial facilities. A wide range of commercial property types and uses may qualify depending on state law. The factors below are common indicators of eligibility — if any apply to your building, a formal review is worth pursuing.
Even if you are unsure whether your operations qualify, our complimentary eligibility assessment will give you a clear answer before we commit to any work together.
Request an Eligibility ReviewFrequently Asked Questions
Answers to the questions we hear most often about utility tax recovery and how the process works.
A predominant use study is a formal analysis that documents how a building's utility consumption is used. Many states exempt utilities from sales tax when the predominant use — typically more than 50% — is for qualifying activities such as manufacturing, data processing, agricultural operations, or other production uses. The study measures and categorizes consumption across all end uses to establish the qualifying percentage, which is then submitted to the utility and taxing authority as the basis for a tax exemption.
In most states, retroactive utility tax refunds can be recovered for 2 to 4 years. The exact lookback period depends on state statutes of limitations for tax refund claims and the specific taxing authority involved. Some jurisdictions allow up to 5 years. We review the applicable rules for each jurisdiction before filing so you know what to expect before we begin.
The majority of U.S. states with a sales tax have some form of utility sales tax exemption for commercial or industrial use. Common states with strong exemption programs include Washington, Oregon, Texas, Illinois, Ohio, Pennsylvania, and many others. The specific rules — qualifying uses, thresholds, and refund procedures — vary significantly by state. We stay current on exemption rules across all major commercial markets and will tell you upfront whether your state and building type are likely to qualify.
From initial eligibility review to receipt of a refund check, the full process typically takes 3 to 9 months. The predominant use study and exemption filing usually take 4 to 8 weeks. Utility and taxing authority review and approval can take an additional 2 to 6 months depending on the jurisdiction and the volume of claims they are processing. We keep you updated throughout and follow up proactively to move your claim forward.
Our fee is a percentage of the amounts we actually recover for you — both retroactive refunds and the projected forward savings from exemptions we put in place. The exact percentage is discussed and agreed upon before we begin work. There is no upfront cost, no hourly billing, and no fee if we find nothing. The contingency model means our interests are fully aligned: we only get paid when you get paid.
Find Out If You're Overpaying Utility Taxes
Our free eligibility assessment takes the guesswork out of it. We review your accounts, tell you what we find, and only proceed if there is a real recovery opportunity.