Economic development: other; general sales tax act; amend to reflect elimination of the Michigan strategic fund. Amends sec. 4ee of 1933 PA 167 (MCL 205.54ee). TIE BAR WITH: SB 0631'25
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Progress
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- Introduced
- Passed Senate
- Passed House
- To Governor
- Became Law
Overview
This bill modifies the General Sales Tax Act to adjust the rules for exempting sales of data center equipment. Initially, sales to qualified data centers and related businesses were exempt, contingent on demonstrating job creation and reporting to the Michigan Strategic Fund. However, these exemptions are phased out, requiring a minimum of 400 data center industry jobs or related jobs by January 1, 2016, and then 1,000 by January 1, 2026. Continued exemptions after these dates depend on ongoing job creation and reporting requirements. The bill also introduces new requirements for data centers to demonstrate green building standards and energy sourcing, and outlines penalties for failing to meet these criteria.
Key provisions
- Eliminates the initial exemption for data center equipment sales from January 1, 2016 through December 31, 2050.
- Requires a minimum of 400 data center industry jobs or related jobs to maintain the exemption after January 1, 2016.
- Requires a minimum of 1,000 data center industry jobs or related jobs to maintain the exemption after January 1, 2026.
- Mandates reporting of data center purchases and employment to the Michigan Strategic Fund to verify job creation.
- Establishes requirements for data centers to obtain and maintain green building certifications.
- Requires data centers to procure clean energy equivalent to 90% of their forecasted electricity usage.
- Specifies penalties, including repayment of tax exemptions, for facilities that no longer meet the criteria for an enterprise data center.
- Introduces a process for the Michigan Strategic Fund to issue and revoke certificates for enterprise data centers.
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