If your power runs production, you may be overpaying sales tax.
We help eligible Texas businesses find out whether part of their electricity is exempt from sales tax, and pursue refunds on tax already paid.
Talk to Strategic Client ServicesCould your site qualify?
Is your site making, processing, cooking or growing something?
Does most of the electricity run production equipment?
Are you paying sales tax on your electric bill today?
Three yeses usually means a study is worth doing. Not sure? Send us a bill and a line about what you make.
It comes down to where the power goes
Illustrative. Qualification depends on a usage study of your site.
In Texas, electricity used mostly for manufacturing, processing, fabrication, commercial cooking or agriculture may qualify for a sales tax exemption, and many nonprofits and places of worship may be exempt as organizations. Many qualifying businesses still pay the tax on every bill because no one ever checked.
Qualifying is decided by a study of how your site uses power. We coordinate that study with an experienced utility tax specialist, handle the paperwork with you, and make sure the exemption shows up on your bills. Where you qualify, refunds of tax paid in prior years may also be available.
Looking back four years
Texas generally allows refund claims for sales tax paid within the last four years. If your site qualifies, the study shows what can be claimed.
Usually a fit
- Manufacturers and processors
- Machine shops and CNC operations
- Metal fabrication, foundries and forging
- Restaurants and commercial kitchens
- Food processing and cold storage
- Farms, ranches and irrigation
- Nonprofits, including churches, temples, mosques and synagogues
- Other sites where most electricity runs production equipment
Nonprofit or place of worship? The test is different, and often simpler. Offices and retail usually do not qualify, and we will tell you so.
How do I know if I qualify?
The general test is whether most of the electricity at the site is used in production. Send us a bill and a short description of your operation, and we'll tell you if it's worth a study.
How far back can a refund go?
Texas generally allows refund claims for tax paid within the last four years. The study determines what applies to your site.
Does this change my electricity contract?
No. The exemption is about how your power is taxed, not who you buy it from.
Can churches and nonprofits qualify?
Many religious, charitable and educational organizations may be exempt from Texas sales tax, including on electricity, once the state confirms their exempt status. We can help you check and get the exemption on file with your provider.
Do offices and retail qualify?
Usually not, because most of their power goes to lighting and comfort, not production. We'll tell you honestly.
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Find out if your site qualifies.
Talk to Strategic Client Services Book a callExcelsior Energy is a licensed Texas energy broker (PUCT #BR250198).