Manufacturers and industrial processors with facilities located in Connecticut may be eligible for a utility tax exemption. Connecticut offers an exemption from state sales tax on the purchase of electricity, natural gas, and water used in qualifying production activities. This tax exemption is authorized by Conn. Gen. Stat. §12-412(3) & (16).

Exemption Language of Conn. Gen. Stat. §12-412(3) & (16)

"The sale, furnishing or service of gas, including bottled gas, and electricity when delivered to consumers through mains, lines, pipes or bottles for use... directly in agricultural production, fabrication of a finished product to be sold or an industrial manufacturing plant, provided the exemption under this subdivision (ii) shall only be allowed with respect to a metered building, location or premise at which not less than seventy-five per cent of the gas, including bottled gas, or electricity consumed at such metered building, location or premise is used for the purpose of such production, fabrication or manufacturing."

Utility Study Requirement for Exemption Qualification

A Connecticut utility tax study must list every piece of equipment and appliance (production and non-production) that uses the utility and the annual consumption of each. Failure to properly calculate or classify utility usage is cause for denial of the exemption.

Connecticut Statute of Limitations on Tax Refund

3 years

State Sales Tax Rate: 6%

Average Local Sales Tax Rate: 0%

Helpful Resources

Connecticut Utility Exemption Certificate: CERT-115

Connecticut Utility Exemption Statute/Rule: Conn. Gen. Stat. §12-412(3) & (16)

Connecticut Claim Form for Tax Refund: Assignment of Retailer's Rights for Refund