Food Manufacturer 250,000 sqft facility

Energy Impact performed a utility sales tax study for a large, Midwestern food production facility. The company operated three eight-hour shifts per day, six days per week, out of their 250,000 square foot facility. The monthly utility spend was: electricity $80,000, gas $20,000, and water $8,000. The sales tax rate in the state in which the client operated was 7 percent.

Energy Impact conducted a the four-hour non-invasive study on-site at the client’s facility. Following the on-site study, additional engineering analyisis and calculations, conducted off-site, determined what percentage of the utilities were used for production vs. non-production.

Energy Impact determined that the client’s electric, gas, and water meters were exempt from sales tax moving forward. This resulted in an annual savings of over $90,000 ($7,560 per month).

Additionally, Energy Impact performed retroactive studies over the three previous years and was able to recover $270,000 in sales tax refunds for those years.