Texas Businesses Could Save Big on Utility Bills with Little-Known Tax Rule

TEXAS — What if your business could get thousands of dollars back on utility bills you’ve already paid? That’s exactly what happened for one Buna business, which recently received more than $14,000 in refunds — plus projected ten-year savings topping $35,000 — thanks to a little-known state rule.

At the center of it all is Texas Rule 3.295, a regulation that allows businesses to qualify for sales tax exemptions on electricity and natural gas. If at least 50% of the power being used goes toward qualified activities like manufacturing, processing, or residential services, then the entire utility bill tied to that meter can be exempt from sales tax.

That means not only lower bills moving forward, but also the chance to claim refunds for up to four years of past overpayments.

Who Qualifies?

A surprising variety of businesses may benefit, including:

• Manufacturing shops (from small machine shops to large plants)

• Bakeries and food processors

• Nursing homes, assisted living facilities, and retirement centers

• RV and mobile home parks (with long-term stays)

• Apartment complexes and condos

• Agricultural operations like farms, irrigation, and nurseries

What Doesn’t Count

Not everything qualifies. Activities like raw material sorting, remodeling, simple packing, and routine maintenance are excluded. To ensure compliance, an accredited engineer must perform what’s called a “predominant use study” to prove that at least half of the electricity or gas usage is exempt.

Why It Matters Locally

The Buna Chamber of Commerce is encouraging business owners to take a closer look, pointing to the refund one local company has already received. With energy costs hitting the bottom line hard, this could be a chance for East Texas businesses to reclaim money they didn’t know they were owed.

Where to Learn More

Business owners can learn about Texas Rule 3.295 directly from the Texas Comptroller’s Office, or work with accredited consultants who handle predominant use studies.

For many, it may be the easiest way to cut costs — and get real cash back — without changing a thing about daily operations.