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 the Reseller Permit Team 360-705-6217.