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
• April 1, 2012 and June 30, 2015
• July 1, 2015 and June 30, 2025

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 qualifying businesses.
• Annual Tax Performance Report due by May 31st of the year following the year the applicant becomes eligible to claim the sales tax exemption. 
• Electronic filing of all documents required.
• List of Rural Counties

For questions about the application, call Kathryn Elliott (360) 705-6015.