Sales tax exemption

Wisconsin and Michigan customers with business types listed below may qualify for state sales tax exemption on electric and natural gas bills.

If your business meets the sales tax exemption requirements, complete (or import) and return the sales tax exemption certificate using Avalara CertExpress — our secure third-party partner. Review our Wisconsin checklist or Michigan checklist before completing and sending your exemption certificate.

Wisconsin

• Agricultural production
  
  • Commercial customers are tax exempt for electricity and natural gas used in agricultural production, nurseries and greenhouses. They also are exempt from sales tax on the Fixed Charge if they have no energy use.
  • If using Avalara CertExpress to create and submit your sales tax exemption certificate, choose “Other” as the exemption type.
  • Percentages need to be provided for the portion of agricultural production that is exempt. We recommend that you consult with your tax advisor to confirm the percentage listed on the certificate.
• Commercial customer with residential energy use
  
  • Commercial customers with residential electric or natural gas use are tax exempt for the portion of energy used for residential purposes (such as apartment “house meters,” stores or restaurants with living quarters, etc.). Percentages need to be provided for the portion of residential use that is exempt.
  • If using Avalara CertExpress to create and submit your sales tax exemption certificate, choose “Other” as the exemption type.
• Governmental agency
  
  • Governmental agencies in Wisconsin are tax exempt year-round for electric and natural gas use.
• Manufacturing
  
  • A sales tax exemption will be available for electricity and natural gas used in manufacturing. Percentages need to be provided for the portion of service used in manufacturing.
• Nonprofit organization
  
  • Nonprofit organizations in Wisconsin are tax exempt year-round for electric and natural gas use. This includes any corporation, community chest fund, foundation or association that is organized and operated exclusively for religious, charitable, scientific or educational purposes or for the prevention of cruelty to children or animals.

Michigan

• Agricultural production
  
  • Commercial customers are tax exempt for electricity and natural gas used in agricultural production. They also are exempt from sales tax on the Fixed Charge if they have no energy use.
• Industrial processing
  
  • Commercial customers are tax exempt year-round for electric and natural gas used in industrial processing. Qualifying activities include:
    • Production
    • Patent, experimentation, development, engineering inspection and quality control
    • Planning, scheduling and production control
    • Design, construction and maintenance of factory machinery, equipment and tooling
    • Disposal of production scrap and waste
    • Production supervision
    • Production material handling
• Nonprofit organization
  
  • Nonprofit organizations in Michigan are tax exempt year-round for electric and natural gas use. This includes any corporation, community chest fund, foundation or association that is organized and operated exclusively for religious, charitable, scientific or educational purposes or for the prevention of cruelty to children or animals.

Sales tax refund

Wisconsin

You also may be eligible for a refund for sales tax paid on energy bills over 60 days before the date of the sales tax exemption request on Wisconsin Department of Revenue Form S-211.

To apply for a refund, complete Form S-220 and Section 1 and 3 of Form S-220a (below) and submit them to us using CertExpress. Choose “Import exemption certificates” and upload image files of the documents.

• Form S-220 BCR: Buyer’s Claim for Refund of State, County and Stadium Taxes
• Form S-220a Schedule P: Attachment to BCR of State, County and Stadium Taxes

We will complete Section 2 of Form S-220a and then sign and return the forms to you via email for submitting to the Wisconsin Department of Revenue. Your refund will come directly from the State.

Michigan

You also may be eligible for a refund for sales tax charged and paid on energy bills before the date of the Certificate of Exemption request.

To apply for a refund on past bills, complete and submit form 5633, Purchaser Refund Request for a Sales or Use Tax Exemption to the Michigan Department of Treasury. Your refund will come directly from the State.

Additional information

Wisconsin Department of Revenue
Michigan Department of Treasury

You also can send forms to:
Email: businesscenter@wisconsinpublicservice.com
Mailing address:
Wisconsin Public Service
Customer Service
P.O. Box 19001
Green Bay, WI 54307-9001

Questions

Business Solutions Center
877-444-0888 (Monday-Friday: 8 a.m.-5 p.m.)

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