Data Center Tax Incentives

Tax Incentive for Data Center in Rural Counties 

Purchases of Server Equipment and Power Infrastructure for use in Eligible Data Centers—Sales/Use Tax Exemption 

Available to: The owner of an eligible data center with a combined square footage of at least 100,000 square feet and tenants of the owner of an eligible data center located in a rural county. To qualify the data center must have a building permit to construct, renovate, or expand the data center issued between:

  • April 1, 2010 and June 30, 2011
    • Expires April 1, 2018
  • April 1, 2012 and June 30, 2015
    • Expires April 1, 2024
  • July 1, 2015 and June 30, 2025
    • Expires within 12 years of the date on the Certificate of Occupancy.
    • Only 12 permits will be issued in this date range.

Qualifying Activity: Sales/use tax exemption on: Purchases of eligible server equipment and labor and services to install server equipment in an eligible data center. Purchases of eligible power infrastructure, and labor and services to construct, install, repair, alter, or improve eligible power infrastructure.

Reporting/ Documentation: Submit Application for Sales Tax Exemption for Purchases by Data Centers prior to purchases of server equipment or power infrastructure. The Department will issue a Certificate for Sales Tax Exemption for Purchases by Data Centers to qualify businesses. Annual Tax Incentive Report due by April 30th of the year following the year the applicant becomes eligible to claim the sales tax exemption. Electronic filing of all documents required.

Contact: For questions about the program, call Kathryn Elliott (360) 705-6015.

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