Our energy savings services make sure that our clients take advantage of the energy savings that are available to them. As part of our incentive and location consulting services, Atlas Insight assists our clients in realizing savings associated with energy use at their manufacturing and industrial facilities. If your company is considering a project which will significantly increase your energy requirements, energy incentives can have a real impact on your bottom line. A few examples of potential opportunities include:
Economic Development Utility Rate Riders
Many utility companies throughout the U.S. offer Economic Development rate riders to encourage job growth within their service territory. Often these incentives are targeted toward companies who are increasing their utility loads as results of new facility construction or expansion projects. While the potential savings will vary depending on the utility service and provider, Atlas Insight routinely works with companies to identify and negotiate Economic Development rate riders, resulting in savings as high as 30% of a company’s incremental usage for five years or more. Note that for at-risk locations, discounts can also be offered to companies for retaining existing utility loads.
State Utility Sales Tax Exemptions
Many states allow for an exemption for fuel and energy used by manufacturing facilities. This may include utilities such as electricity, natural gas as well as oil, propane and other fuel purchased for use at the facility. Each state has its own requirements as to what may quality for
a sales tax exemption. In some instances, only energy and fuel used directly in the production process can qualify, and in other cases an exemption may be claimed on 100% of use at the manufacturing facility. Regardless of your situation, Atlas Insight can assist you in determining your qualifying percentage, assist with obtaining a sales tax refund on past purchases, and ensure that your facilities are receiving exemptions on an ongoing basis.
Federal Fuel Tax Credits & Exemptions
Another potential source of energy related savings is via Federal Alternative Fuel Tax Credits and Exemptions. Qualifying companies may take advantage of several exemptions that are available for fuel purchased and used in a non-taxable manner as well as credits available for the purchase of alternative fuels. For example, propane related incentives are often overlooked. For large manufacturers who utilize propane powered forklifts, these incentives can result in significant annual savings.
Green Energy and Efficiency Savings
Increasingly, companies are looking at cost effective ways to incorporate sustainability and green energy into their footprints. Tax credits and rebate incentives are often available to help offset the costs of implementing energy and efficiency savings improvements.