Michigan Data Center Sales and Use Tax Exemption

Date

10.02.16

Certified businesses that construct a plant engaged in the manufacture of tiers or other related rubber or automotive products and enterprises owning or operating maritime fabrication and assembly facilities are eligible for up to 25 years in exemptions against corporate income tax arising from the project.

Effective January 1, 2016 through December 31, 2035, businesses operating a qualifying data center and eligible co-located businesses may claim a sales and use tax exemption for the sale, use, or consumption of data center equipment used in a qualified data center or co-located in the qualifying data center.

Contractors providing construction materials affixed to a qualified data center and meeting certain construction methodology requirements also qualify. The Acts require 400 new data center industry jobs to be created by January 2, 2022 or 1,000 by January 1, 2026 or the Acts will be repealed.