Commercial and industrial accounts, as well as some residential accounts, may be charged sales tax. If you wish to claim a Pennsylvania Sales Tax Exemption, a valid Pennsylvania Sales Tax Exemption Certificate must be provided.
Religious, Volunteer Fireman's, Non-Profit Educational and Charitable Organizations who claim an exemption from Pennsylvania's sales tax for the use of electricity must provide a separate blanket sales and use tax exemption certificate for each exempt account. These exemption certificates must be properly completed and must indicate the Sales Tax License Exemption Number of the organization. This exemption must always be prefixed with the first two digits "75".
What electricity use is tax-exempt?
Section 32.25 of the Pennsylvania Tax Code states, "The purchase of ... electricity by a person engaged in the business of manufacturing, processing, farming, dairying, printing, mining, rendering a public utility service, photography or photofinishing, may require apportionment between taxable and exempt use if a portion of the purchase is used directly in one or more of these business operations."
Electricity use for offices, shipping and receiving areas, storage areas and warehouses, security systems, and lighting for access roads, entrances, exits and parking lots is subject to sales tax. The Revenue Department holds that no manufacturer is 100-percent exempt from sales tax on electricity use because some of their electricity use is not directly related to manufacturing. Unless you have a separate account for all of your administrative needs, qualify as a non-profit corporation or have a KOZ exemption, the Revenue Department will not accept a claim for 100 percent tax exemption.
How to qualify for a tax exemption
To exempt a portion of your electricity use from sales tax you must fill out a Pennsylvania Exemption Certificate and return it to us. In addition to completing all of the information on the certificate, you must include your Duquesne Light Company (DLC) account number, a brief explanation of the nature of your business, the percentage of electricity use you are claiming as tax-exempt and a brief description of how you determined that percentage. The name on the certificate must match the name on your Duquesne Light account.
Non-profit exemption
A qualifying non-profit organization pays no sales tax on the electricity use. DLC must have a copy of the Pennsylvania Sales Tax Exemption certificate and the Pennsylvania Holding Exemption certificate on file if you are claiming status as a non-profit organization.
KOZ exemption
If you are claiming 100 percent exemption as a Keystone Opportunity Zone customer, DLC must have a copy of the KOZ certificate you received from the Revenue Department.