Wisconsin Utility Sales Tax Exemption
Wisconsin provides a sales and use tax exemption on purchases of fuel and electricity used directly in manufacturing tangible personal property. To qualify, at least 51% of the utility usage on a meter must be consumed in a manufacturing process. Utilities used for non-production purposes, such as lighting, office heating, or administrative operations, remain taxable.
Utility Study Requirement
To support the exemption, businesses should:
- Conduct a utility usage study to document exempt versus non-exempt utility consumption.
- Identify all equipment and processes that use utilities directly in manufacturing.
- Calculate annual usage allocations, ensuring the 51% test is satisfied.
- Maintain records of the study, utility bills, and supporting documentation.
Filing Requirements
To claim the exemption, businesses must provide their utility provider with a Wisconsin Sales and Use Tax Exemption Certificate (Form S-211). If sales tax was previously paid on exempt utility usage, businesses may request a refund through the Wisconsin Department of Revenue. Refund claims are generally permitted for up to four years from the due date of the tax return or the date the tax was paid, whichever is later. Detailed records and documentation must accompany all refund claims.