Natural gas is considered as one of the best sources of energy and electricity, which is being used for residential, commercial, and industrial purposes.
Compared to other sources of energy like oil, coal, and other hydrocarbon fuels, studies show that natural gas is the better alternative considering that it produces less pollution, being the cleaner fossil fuel that it is.
The US Department of Energy’s Energy Information Administration reports that as of 2010, at least 25% of the total energy consumed in the US is energy produced from natural gas. Another report shows that in the US, the top consumers of natural gas are states like California, Florida, Illinois, Louisiana, New York, and Texas.
You could just imagine the demand for this particular type of gas in the United States alone. That is why, natural gas extraction, processing, and production has proven to be one of the most lucrative industries in the US and abroad. However, just like in any other sector, companies engaged in the production of natural gas face challenges. One of their major concerns is the depletion of the resources, and another is the heavy competition in the use of pipelines for the supply of the gas.
Owing to the noble role that natural gas as well as its processors and suppliers play in the lives of the people in general, several states in the US are engaged in a collective effort of giving incentives, by way of electricity tax exemptions and credits, just to keep the industry going.
In Florida, for instance, the Florida Statutes under Section 212.08 gives them a fifty percent exemption from sales tax on their purchase of electrical energy directly and exclusively used in their operations. This privilege is available to them up to a period of five years. The State of New Jersey likewise offers natural gas and electricity sales and use tax exemption on purchases of electricity and natural gas.
Meanwhile, the State of Delaware offers taxing privileges to public utilities that provide and distribute electricity and gas, excluding liquefied gas, to the consumers. It offers sales tax exemption for the sale of gas and of electric bought for resale, as well as tax exemption for the consumption of electric and gas utilities by the consumers.
Conversely, the provision on the Texas Administrative Code with respect to the Sales and Use Tax for Natural Gas and Electricity, under Title 34, Part 1, Chapter 3, Subchapter O, Rule 3.295, clearly provides for sales and use tax exemption on the direct and exclusive use of electricity or natural gas in processing. The taxpayer can avail of the exemption so long as electricity and natural gas is directly and exclusively used for the exempt purposes. The same sales and use tax exemption applies to the direct and exclusive use of natural gas or electricity in the transportation of natural resources extracted from the soil, such as water, natural gas, oil, coal, sand, and gravel.
Being engaged in a related trade, with sufficient background and knowledge of electricity and energy supply and consumption, the National Utility Consulting knows exactly what impact natural gas has over the lives of the people. It is for this reason that we give our full support to the states in their movement towards serving the natural gas industry. So, in our own way, we give our best effort to help our colleagues in the natural gas industry and everyone else, to save on energy and electric costs. How do we do that? We will gladly sit down and discuss it with you.