Solar panel manufacturing facility in San Diego. SDG&E is charging California sales tax on electricity used to run the production equipment. California Revenue & Taxation Code Section 6377 should exempt manufacturing equipment. Filed BOE-230 but getting pushback. Anyone dealt with solar manufacturing exemptions?
SDG&E sales tax on solar production equipment
Solar is considered manufacturing in most states. Florida exempts it under the same statute as traditional manufacturing. California should be similar but they're picky about documentation.
TECO in Tampa had similar situation. Solar panel assembly qualified for exemption but only the electricity directly used in production equipment. Office areas, shipping, storage still got taxed.
Duke Energy in Charlotte approved our solar manufacturing exemption last year. Key was getting an engineer to certify which circuits served production equipment vs support functions.
Ohio allows solar manufacturing under ORC 5739.02. FirstEnergy processed our exemption in 3 weeks. Saved client $4,100/month going forward plus $31,000 refund.
Update: SDG&E approved the exemption after we provided detailed equipment list and power consumption analysis. 18-month refund of $28,500. Thanks for all the input!
Great outcome! Solar manufacturing is definitely growing. Good to know SDG&E will work with you on proper documentation.