Nevada is the latest state to offer data center providers with tax incentives as a draw to their state. According to a source at the Las Vegas Global Economic Alliance, and based on information from the legislature, the legislation recently passed is slated to be applicable as of July 1, 2012. Exact detail has not been released by the legislature.
This Follows Arizona legislation earlier in June (HB 2009) that allows various tax incentives, beginning Sept. 1, for the owner, operator, and co-location tenants of data centers if they meet certain requirements determined by a certification process administered by the Arizona Commerce Authority.
In both states, the legislation allows data center operators and qualified tenants to receive an exemption or abatement for sales and use taxes attributable to data center equipment purchased for use in a qualified data center. The requirement is generally defined by determining if it is a new investment in the state, and dependant on what geographic area the development is in (urban, non-urban, redevelopment, etc). Each state has varying rules regarding CapEx requirements and timeframes.
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