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.
Predominant Use Study
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.
- Maintain records of the study, utility bills, and supporting documentation.
Exemption Requirement
Submit Wisconsin Sales and Use Tax Exemption Certificate (Form S-211) to utility providers. To request a refund for previously paid utility sales taxes, file a claim with the Wisconsin Department of Revenue. Refunds are generally available for up to four years from the tax return due date or the date the tax was paid, whichever is later. All refund claims must include detailed records and supporting documentation.