Manufacturers and industrial processors with facilities located in North Carolina, may be eligible for a utility tax exemption. North Carolina offers an exemption from state and local sales tax on the purchase of electricity, natural gas, and water used in qualifying production activities. This tax exemption is authorized by G.S. 105-164.13(57).

Exemption Language of G.S. 105-164.13(57)

"The following is exempt from sales tax: "Fuel, electricity, and piped natural gas sold to a manufacturer for use in connection with the operation of a manufacturing facility. The exemption does not apply to the following: a. Electricity used at a facility at which the primary activity is not manufacturing. b. Fuel or piped natural gas that is used solely for comfort heating at a manufacturing facility where there is no use of fuel or piped natural gas in a manufacturing process."

Utility Study Requirement for Exemption Qualification

North Carolina does not have a standard utility tax study requirement. Please contact us for more information regarding the requirements for claiming the exemption in North Carolina.

North Carolina Statute of Limitations on Tax Refund

3 years

State Sales Tax Rate: 4.75%

Average Local Sales Tax Rate: 2.22%

Helpful Resources

North Carolina Utility Exemption Certificate: Certificate of Exemption E-595E

North Carolina Utility Exemption Statute/Rule: G.S. 105-164.13(57)

North Carolina Claim Form for Tax Refund: E-588 Claim for Refund