Qualified States

ARKANSAS
Beginning July 2007 through June 30, 2008 state tax will be 4.5% vs 5%.
Beginning July 1, 2008 and thereafter, rate will be 4% vs 6%.
Utility must be used directly in manufacturing.
Manufacturing area must be separately metered from taxable area.
http://www.dfa.arkansas.gov/Pages/default.aspx

COLORADO
Beginning March of 2010, the exemption for industrial processes has been suspended but remains for agricultural processes.
Lighting does qualify.
Study required.
http://www.colorado.gov/revenue

CONNECTICUT
Predominant use (76% or more of utility used in manufacturing allows for 100% exemption).
If less than 75% used in manufacturing, partial exemption is possible.
Study required.
http://www.ct.gov/drs/site/default.asp

FLORIDA
Tiered exemption system used for electricity exemptions.
Under 50% used in manufacturing does not qualify for exemption, 50% through 75% used in manufacturing receives 50% exemption, 76% and above used in manufacturing receives 100% exemption.
Only specific industries qualify.  Check SIC code in classification manual.
Study required.
http://dor.myflorida.com/dor

GEORGIA
Effective January 1, 2013, there will be a four year phase-in period for the exemption for sales and use tax on the sale, use, storage, or consumption of energy that is necessary and integral to the manufacture of tangible personal property at a manufacturing plant in Georgia.

The schedule is as follows: (1) From January 1, 2013— December 31, 2013, a 25% exemption from the 4% state sales and use tax rate and any 1% local sales and use tax (other than any 1% educational local option sales and use tax); (2) from January 1, 2014— December 31, 2014, the 25% exemption will increase to 50%; (3) from January 1, 2015— December 31, 2015, the exemption will increase to 75%; and (4) on January 1, 2016 the exemption increases to 100%
https://dor.ga.gov/

IDAHO
Exemption on all utilities delivered by pipes, wires or mains.
http://tax.idaho.gov/

INDIANA
Predominant use (51% or more of utility used in manufacturing allows for
100% exemption.)  If less than 50%, then a partial exemption is available but no refund is
granted. Annual refunds must be applied for from State Refunds and exemptions for
water used in all or part of manufacturing and/or processing does qualify
Predominant Use Study required.
http://www.state.in.us/dor/index.htm

IOWA
Actual percentage of utility used in manufacturing.
Updates required every 3 years.
Research & Development does qualify.
Refunds and exemptions for water used in all or part of manufacturing and/or processing does qualify.
Study required.
http://www.iowa.gov/tax/index.html

KANSAS
Actual percentage of utility used in manufacturing.
Research & Development does qualify.
Refunds and exemptions for water used in all or part of manufacturing and/or processing does qualify.
Study required.
http://www.ksrevenue.org/

KENTUCKY
100% exemption if the cost of natural gas and electricity exceeds 3% of the overall cost of production.
http://revenue.ky.gov/

LOUISIANA
Beginning July 1, 2008, sales and use tax rate reduced from 3.3% to 2.3%.
After July 1, 2009, no tax applies to electricity and natural gas.
http://www.rev.state.la.us/

MAINE
95% exemption if manufacturing occurs.
No study required.
http://www.state.me.us/revenue

MARYLAND
Predominant use (51% or more of utility used in manufacturing allows for
100% exemption).
Study required.
http://www.comp.state.md.us/

MASSACHUSETTS
Predominant use (75% or more of utility used in manufacturing allows for
100% exemption).
Refunds and exemptions for water used in all or part of manufacturing and/or processing does qualify.
Research & Development does qualify.
Study required.
http://www.mass.gov/

MICHIGAN
Actual percentage of utility used in manufacturing.
Research & Development does qualify.
Study Required.
http://www.michigan.gov/treasury

MINNESOTA
Limit of two(2) refund claims only per year (regardless of tax type).
Actual percentage of utility used in manufacturing.
Refunds and exemptions for water used in all or part of manufacturing and/or processing does qualify.
Research & Development does qualify.
Study Required.
http://www.taxes.state.mn.us/

MISSISSIPPI
Automatic reduction from the full tax rate down to 1.5% for utilities used in production.
Taxpayer needs to obtain direct pay permit from state and remit the appropriate tax to state.
Water qualifies for exemptions.
Study required.
http://www.mstc.state.ms.us/

MISSOURI
There are two different ways to get exemptions and refunds.
Utility cost must be more than 10% of the total cost of production.  To determine percentage take total production cost minus utilities cost then divide utility cost by production cost.
An application has to be submitted to the state (Form 1749E-10) for each calendar year you are claiming refund.
OR
Tiered system
Actual percentage must be calculated. (Square footage may be used)
1% through 25% used in manufacturing receives 25% exemption, 26% through 50% used in manufacturing receives 50% exemption, 51% through 75% used in manufacturing receives 75% exemption, 76% and above receives 100% exemption.
Special exemption for use of recycled materials.
Study required.
http://dor.mo.gov/

NEBRASKA
Predominant use (51% or more of utility used in manufacturing allows for 100% exemption).
Refunds and exemptions for water used in all or part of manufacturing and/or processing does qualify.
Study required.
http://www.revenue.state.ne.us/

NEW JERSEY
Must be in Enterprise Zone.
Must employ at least 250 people.
Several other highly restrictive exemptions for qualifying companies available.
http://www.state.nj.us/treasury/taxation/

NEW YORK
Actual percentage of utility used in manufacturing.
Research & Development does qualify.
Utility company applies 100% exemption on bill.
Taxpayer accrues and pays taxable portion to State using form ST100.
Study required.
https://www.tax.ny.gov

NORTH CAROLINA
Reduced tax rate to 2.83%.
Can be reduced to .17% of megawatt volume of electricity received during the previous calendar year if more than 900,000 for the next fiscal year.
http://www.dor.state.nc.us/

OKLAHOMA
Predominant use (51% or more of utility used in manufacturing allows for 100% exemption).
Study required.
http://www.oktax.state.ok.us/

PENNSYLVANIA
Actual percentage of utility used in manufacturing.
Lighting in plant qualifies.
Study required.
http://www.revenue.state.pa.us/portal/server.pt/community/revenue_home/10648

RHODE ISLAND
Actual percentage of utility used in manufacturing.
Study required.
http://www.tax.state.ri.us/

SOUTH CAROLINA
Actual percentage of utility used in manufacturing.
Study required.
http://www.sctax.org/default.htm

TENNESSEE
Reduction from the full tax rate down to 1.5% if you are a manufacturer.
Water does qualify.
http://www.state.tn.us/revenue

TEXAS 
Predominant use (51% or more of utility used in manufacturing allows for 100% exemption).
Predominant use study must have engineering statement on study.  A licensed engineer must affix his or her stamp and sign attesting to the accuracy of the study, OR the engineer must be a graduate from a accredited engineering school to sign off on the study.
Predominant use studies are required.
http://www.cpa.state.tx.us/

UTAH
Predominant use (51% or more of utility used in manufacturing allows for 100% exemption).
Study with only taxable usage required.
http://tax.utah.gov/

VIRGINIA
All utilities are exempt.
http://www.tax.virginia.gov/

VERMONT
Actual percentage of utility used in manufacturing.
Valid for three years only.
Study required.
http://www.state.vt.us/tax/index.shtml

WEST VIRGINIA
All utilities are exempt.
http://www.wvtax.gov/index.html

WISCONSIN
Actual percentage of utility used in manufacturing.
Study required.
https://www.revenue.wi.gov

WYOMING
Actual percentage of utility used in manufacturing.
Study required.
http://revenue.state.wy.us/