Purchases of server equipment and power infrastructure for use in eligible data centers - sales/use tax exemption

Attention:

The Department is currently accepting applications for this program. Please see the Special Notice titled Data center exemption and application process for details.

Available to:

The owner—and tenants—of an eligible data center that has a combined square footage of at least 100,000 square feet and is located in a rural county.

To qualify the data center must have a building permit to construct, renovate, or expand the data center issued during one of the following periods:

• April 1, 2010 to June 30, 2011
• April 1, 2012 to June 30, 2015
• July 1, 2015 to 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

Application process:

• Review the List of Rural Counties for eligibility.
• Submit the Application for Sales Tax Exemption for Purchases by Data Centers before purchasing server equipment or power infrastructure.

Approval and reporting: 

• If approved, the Department will issue a Certificate for Sales Tax Exemption for Purchases by Data Centers.
• Once approved, you must submit the Annual Tax Performance Report by May 31st of the year following the year.

Note: You are required to file all documents electronically.

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