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Business Energy Advice >
Sales Tax Exemption
Your business could qualify for tax exemption on electric bills.
Do you have one of the following types of businesses?
Agricultural Production
- Commercial businesses in Michigan are tax-exempt for electricity used
in agricultural production.
- They are also exempt from sales tax on the Customer Charge if they
have no use.
- Send a Michigan Sales Tax Certificate to Wisconsin Public Service,
Commercial & Industrial Billing, P.O. Box 19002, Green Bay, WI 54307-9002,
or fax it to 920-430-6255.
- On the certificate, be sure to include the percentage of energy use claimed
for agricultural production. Here's a guideline to help you determine that
percentage if you have a dual-use meter (for residential and agricultural use):
If your total electric use exceeds 1,500 kilowatt-hours per month, or 2,500 kilowatt-hours where
a home has electric heat from November to March, the excess usage will be considered
exempt.
Industrial Processing
- Businesses in Michigan are tax-exempt year-round for electric and natural gas used
in industrial processing. Qualifying activities include:
- production
- patent, experimentation, development, engineering inspection and quality control
- planning, scheduling and production control
- design, construction and maintenance of factory machinery, equipment and tooling
- disposal of production scrap and waste
- production supervision
- production material handling
- Send a Michigan Sales Tax Certificate to Wisconsin Public Service, Commercial &
Industrial Billing, P.O. Box 19002, Green Bay, WI 54307-9002, or fax it to 920-430-6255.
- On the certificate, be sure to include the percentage of energy use claimed for
industrial processing.
Nonprofit Organizations
- Nonprofit organizations in Michigan are tax-exempt year-round for
electric use. This includes any corporation, community chest fund,
foundation or association that is organized and operated exclusively for
religious, charitable, scientific or educational purposes or for the
prevention of cruelty to children or animals.
- Send a Michigan Sales Tax Certificate to Wisconsin Public Service,
Commercial & Industrial Billing, P.O. Box 19002, Green Bay, WI 54307-9002,
or fax it to 920-430-6255.
Questions?
If you have questions about whether an exemption applies to your business,
your tax accountant is your best resource. If you have questions about
your current tax status with Public Service, please contact us.
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