Energy Tax Credits

Manufacturers and Producers need to purchase utilities for their daily operations. These expenses can add up quickly and become significant.  Most companies do not realize that they may be spending exponentially more on energy costs than they are required to pay.  With deregulation policies and the growth of energy brokers over the last few years, many manufacturers have realized savings by changing utility providers that offer the lowest rate available.

However, even with this reduction in utility rates, utility companies are required by law to charge state and local taxes on the natural gas and electricity used for commercial purposes. Fortunately, the law also provides that some commercial activities are exempt from this taxation, including: manufacturing, processing, and fabrication.  If the company is able to prove that the expenses are “predominantly used” in these activities, it may be exempt from all of these taxes and even claim refunds from prior years.

This sounds simple, but an ABGi specialist is needed to maximize the benefit and safeguard your refunds and exemptions.  In addition, an engineering report is mandated to demonstrate “Predominant Use.”

Depending on the state, refunds/exemptions can be obtained for up to five years prior!

Under this program, ABGi’s work is 100% contingent on success.

ABGi’s Five Step Process:

  • Free Consultation – ABGi will analyze the potential exemption qualification, potential refund amount, and total project cost.
  • Facility Inspection – A state-certified engineer will visit the facility to collect equipment and building data for the study.
  • Predominant Use Study – A state-certified engineering study is conducted to substantiate the claims.
  • State Filing for Refunds – All necessary documentation is submitted to state agencies and utility companies.
  • Refunds and Exemptions – All document submissions are tracked until all tax adjustments are finalized and refunds received.


  • Substantial Cost Savings – Qualifying companies may no longer pay tax on utilities. Additionally, companies may receive a substantial refund depending on state rules.
  • Required Documentation – ABGi provides complete audit support and documentation to ensure that companies receive the maximum refund possible.
  • Competitive Advantage – Your competitors are likely unaware of this exemption.  Nearly all companies that work with us see a realized benefit from our work.
  • In addition, comparison of building data with current cost segregation/disposition models can be provided to ensure maximum benefit.
  • No risk – Our work is 100% contingent on our success.


Have a question? We’re happy to help!