SPEP™ Predominant Use

Generally, if energy is used in the manufacture of goods, then all or a portion of that energy may be exempt from sales tax. In order to claim the exemption, local utility companies and third-party energy suppliers typically require proof of the exemption in the form of a predominant use study. This is a formal study prepared by a qualified engineer. Armed with this predominant use study, SPEP™ is typically able to recoup up to three years of past sales tax (each state will vary) payments from the local utility or third party energy supplier.

Program Summary in Texas

A Predominant Use Study determines if more than 50% of the energy of each company meter is expended on services eligible for sales tax exemption on the electric bill. If the qualifying usage is over 50%, then the whole bill is eligible for the tax exemption up to the previous 4 years.


  • Exempt Status from Sales Tax on Electrical UsageTexas Comptroller Seal
  • Refund sales taxes paid up to the past 48 months
  • Identifies major energy consuming equipment
  • Energy consuming equipment is profiled and quantified

Scope of Services

  • In order to determine if a company is eligible, SPEP™ will perform an on-site evaluation of the facility.
  • SPEP™ utilizes trained, insured personnel to undergo the assessment and obtain the necessary information at the facility.
  • Every predominant use study will be reviewed and sealed by a licensed, registered in the state of Texas, Professional Engineer.
  • SPEP™ provides a Predominant Use Study Report with the engineer’s Texas seal to certify the study.
  • SPEP™ submits all necessary documentation to the state of Texas for approval.

Texas Administrative Code 3.295

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