Sales Tax Exemption
UPPCO customers could qualify for sales tax exemption on electric bills. Do you have one of the following types of businesses?
Michigan
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 UPPCO, please contact us.
Michigan
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 Upper Peninsula Power Company Business Solutions Center, P.O. Box 19001, Green Bay, WI 54307-9001 or fax it to 800-305-9754.
- 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 Upper Peninsula Power Company Business Solutions Center, P.O. Box 19001, Green Bay, WI 54307-9001 or fax it to 800-305-9754.
- 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 Upper Peninsula Power Company Business Solutions Center, P.O. Box 19001, Green Bay, WI 54307-9001 or fax it to 800-305-9754.