Missouri and North Dakota Enact Data Center Tax Incentives

April saw the passing of legislation in both Missouri and North Dakota enacting sales and use tax exemptions for data center operators. The bills cover both use and sales tax in either state, providing economic incentives for providers in those regions. 

The North Dakota House Bill, H.B. 1089, creates a sales and use tax exemption for information technology equipment and computer software purchased for use by a business in a data center. Both the facility and the company owning it must qualify under certain conditions in order for the tax to be lifted. However, refunds may be sought retroactively in the case of businesses that  meet requirements after they have made certain purchases. The centers must be at least 16,000 contiguous square feet large and have a host of features in order to qualify.

The Missouri Senate Bill has an exemption for all machinery, utilities, energy and equipment used in new data storage center facilities. However, centers must fill out an application to the Department of Economic Development to be certified. The qualifications for certification are that the company must generate at least $25 million in new facility investment and create at least ten new jobs with wages at least 150 percent over the county average wage over a three year period.

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