Sales tax exemption

WPS business customers could qualify for sales tax exemption on electric bills if you have any of the business types listed below.

If you believe that your business meets the exemption requirements and is eligible for tax exemption, complete the Wisconsin Sales and Use Tax Exemption certificate to ensure you are billed correctly. Before sending your exemption certificate, please review our Wisconsin checklist or Michigan checklist.

Wisconsin

• Agricultural production
  
  • An agribusiness customer is defined to include customers using electric or natural gas service in the production of agriculture products. In those cases where the electricity is used jointly for domestic and agriculture products, the customer is only considered an agribusiness customer if the connected load for agriculture production equals 5 kilowatts or more.
    
    Production of the following items qualifies as an agricultural operation:
    • Livestock: Hogs, cattle, sheep and horses.
    • Dairy
    • Poultry: A combined total of 20 or more chickens, geese, turkeys or ducks.
    • Fruit: A combined total of 20 or more fruit trees, grapevines and nut trees.
    • Fur-bearing animals: Domestic rabbits or fur-bearing animals kept in captivity.
    • Truck gardening
    • Wildlife
    • Field crops: Grain, hay, tobacco, corn or other field crops; also vegetables, small fruits and berries
    • Nurseries and greenhouses
• 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.).
• 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.
• 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 businesses in Michigan are tax exempt for electricity and natural gas used in agricultural production.
  • They are also exempt from sales tax on the Fixed Charge if they have no energy use.
• Industrial processing
  
  • Businesses in Michigan 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 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.

Email the completed certificate of exemption form to businesscenter@wisconsinpublicservice.com, or mail it to:

Wisconsin Public Service
Customer Service
P.O. Box 19001
Green Bay, WI 54307-9001

If you have questions about whether an exemption applies to your business, your tax accountant is your best resource. If you have questions about your current tax status with WPS, please contact us.

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