Skip to main content

Michigan Commercial Building Energy Code is Changing in 2024 – Join us on June 19 to learn more.

Like many other manufacturers you could be overpaying in tax due to lack of a predominant use study.

What is a Predominant Use Study?

As a manufacturer you are charged sales tax by your state based on energy usage however, energy used in the production of an end good is non-taxable.  As a result, we have found that 10-15% of manufacturers are overpaying in taxes every year in either paying full sales tax or overpaying based on how they filed for exemption.

Typically, manufacturers self-evaluate on square footage of production vs non-production space. This is good; however, production is much more energy intensive then warehousing or office causing overpayment. To more accurately report based on actual energy usage, states require you to hire an engineer to complete a predominant use study diving into actual energy usage by space or system. With this approach, over the last 5 years E3M has completed over 25 predominant use studies saving manufacturers a total of almost $5 Million PER YEAR.

Are you Overpaying in Sales Tax?

It’s simple to find out if you’re overpaying in sales tax:

  1. Look at any gas or electric bill to check.
  2. Find the sales tax line item on either bill.
  3. Is that number equal to your local state sales tax rate (6% in Michigan) of your total bill?
    • If yes, you’re overpaying and should complete a predominant use study to discover savings.

We Can Help.

  • E3M can complete a predominant use study to prove what is taxable and not taxable.
  • We can earn your company a refund for the last 3 years (called a rake back).
  • New studies will be required any time business ownership changes or on state expiration. As example in Michigan, the study is good for 4 years at which point we’ll repeat the study.

Follow Their Lead

We’ve completed Predominant Use Studies for 25 Manufacturers around the Country over the Past 5 Years.

Complete the Form Below to Get a Refund and Start Saving Today!

Click or drag a file to this area to upload.
Upload a screen shot of the sales tax amount and bill total and we can verify if you are overpaying in sales tax. Be sure to black out any proprietary information.


Join us on June 19, 2024 in Grand Rapids as we present a workshop on the State of Michigan Energy Code Changes for Commercial Buildings which will start to be enforced in October of this year.