Sustainable renewable energy and utilities efficiency advice and guidance for business
Whatever industry or sector you’re operating in there’s one thing for sure: your business can use less energy and reduce its carbon footprint! You can do this either by reducing the amount of energy you consume, by adjusting things like the electricity supply capacity that’s allocated to your substation (find out more here), or by generating green energy onsite and installing energy efficient systems and technology. Ideally, we’d look to achieve all three!
Service Area’s
Manufacturing
Energy including fuel, gas and electricity used in production within the manufacturing sector is completely exempt in the state of New York. The term ‘production’ is defined by the Department of Taxation and Finance as follows;
The term production covers a variety of activities, including manufacturing, processing, generating, assembling, refining, mining, and extracting.
Manufacturing
Manufacturing generally results in the creation of a product that is substantially different from its component parts in form, character, composition, and usefulness.
Example: A steel manufacturer combines iron with carbon to make commercial steel. This is a manufacturing operation.
Processing
Processing generally results in a change in the nature, shape, or form of materials.
Example: To make decorative landscaping stone, chunks of rock are passed through a series of crushers which reduce the chunks into smaller sizes. This is a processing operation.
Generating
Generating is the creation of a product (such as electricity, steam, or refrigeration) by means of a natural or chemical process.
Example: Hydroelectric power is produced by causing water to fall or flow over turbine blades. The production of hydroelectric power is a generating operation.
Assembling
Assembling is a manufacturing operation, or a process associated with a manufacturing operation, that produces goods by fitting together various parts to make a complete product.
Example: A manufacturer of cars has a production line where various components (engines, frames, doors, windows, etc.) are put together in the process of making a finished car. This is an assembly operation.
Refining
Refining is the operation by which impurities or unwanted elements are removed from a product.
Example: Production of gasoline, motor fuels, and fuel oils from crude oil is a refining operation.
Mining
Manufacturing generally results in the creation of a product that is substantially different from its component parts in form, character, composition, and usefulness.
Example: A steel manufacturer combines iron with carbon to make commercial steel. This is a manufacturing operation.
Extracting
Extracting is a manufacturing operation, or a process associated with a manufacturing operation, in which oil, gas, or mineral deposits are removed from their natural underground reservoirs.
Example: Drilling a well to remove natural gas from the ground is an extracting operation.
If you consume energy for any of those purposes you can claim a rebate of the sales tax paid for the past two years on that energy spend and then claim the exemption moving forward.
To qualify there is some paperwork to be completed and you may require an engineers report. The Energy Check carries this out as a complimentary service for all of it’s customers.
If you would like support in claiming your rebate please complete the following form.
Agriculture
Energy including fuel, gas and electricity used in farming is exempt from paying state and local sales and use tax. The exemption is documented under Tax Bulletin ST-244.
The term ‘farming’ is defined by the Department of Taxation and Finance as follows;
The word farming covers many different activities, including:
- agriculture, floriculture, horticulture, aquaculture, viniculture, viticulture, and silviculture;
- stock, dairy, poultry, fruit or vegetable, graping, truck, and tree farming (e.g., maple trees or Christmas trees);
- ranching;
- raising fur-bearing animals;
- operating orchards;
- raising, growing, and harvesting crops, livestock, and livestock products; and
- raising, growing, and harvesting woodland products including logs, timber, lumber, pulpwood, posts, and firewood.
If you consume energy for any of those purposes you can claim a rebate of the sales tax paid for the past two years on that energy spend and then claim the exemption moving forward.
To qualify there is some paperwork to be completed and you may require an engineers report. The Energy Check carries this out as a complimentary service for all of it’s customers.
If you would like support in claiming your rebate please complete the following form.
Residential
Where a property is used for residential purposes –student accommodation or a nursing home for example then an exemption can be claimed on the sales tax charged on your utilities. If the building is mixed use and the residential space accounts for over 75% of the total space (excluding general common areas) then a full exemption can be claimed. If not, then the % shall be rounded to the nearest 10% and applied.
There are some exemptions to this rule however as the State of New York allows localities to determine whether residential utilities are exempt or not. The list for local jurisdications that tax residential utilieies in New York can be found in New York Publication #718-R.
If you believe your business premises falls into the residential category you can claim a rebate of the sales tax paid for the past two years on that energy spend and then claim the exemption moving forward.
To qualify there is some paperwork to be completed. The Energy Check carries this out as a complimentary service for all of it’s customers.
If you would like support in claiming your rebate please complete the following form.
