In Texas the end user pays sales tax. Thats the overarching premise in sales tax in Texas. Manufactureres have distinct tax advantages; whatever you use to make the product is tax exempt (Texas Tax Code 151.318) This includes electricity and natural gas used in the manufacturing process. There are specific requirements the manufacturer must meet to qualify for the exemption of sales tax on utilities. (Texas Tax Rule 3.295) A Predominant Use Study must be performed to determine that 51% or more of the utility MUST be used in the direct use of the manufacturing process. A person must have an Engineering degree to perform a Predominant Use Study to make the determinantion of the meter qualifies for tax exemption. In addition to saving up to 8.25% monthly in taxes. Tax Rule 3.30 allows for up to a 4 year refund of back taxes reimbursed to the company. Since 2005 Utility Consultants & Assocuates has been writing studies. We've written 1000's of studies and our efforts has produces over $9 million in monthly savings and refund for Texas businesses We've defended out studies before Admin Judges in Austin and 100's of Texas Comptroller Auditors. We are proud of the fact no study has ever been denied! I've traveled every corner of Texas, from El Paso to Beaumont and Amarillo to Brownville to help Texas businesses lower their operating cost. I'd be honored to help you.