The bill amends the General Sales Tax Act to provide tax exemptions for sales of data center equipment to owners or operators of qualified data centers and colocated businesses from January 1, 2016, through December 31, 2050. This exemption is contingent upon the establishment of a minimum number of data center industry jobs in Michigan, with specific job thresholds set for 2022 and 2026. The Michigan Strategic Fund's role is shifted to a "bureau," which will now handle applications for enterprise data center certificates, monitor compliance, and report on job creation to legislative leaders and the governor. The bill also encourages environmentally sustainable practices, requiring facilities to achieve certification under recognized green building standards and utilize renewable energy sources.

Additionally, the bill mandates that qualified entities create and maintain a minimum of 30 new jobs with wages at least 150% of the prosperity region median wage, while also stipulating that these facilities must not receive state or local property tax benefits without local approval. The definitions of "enterprise data center," "qualified data center," and "qualified entity" have been refined to ensure clarity in eligibility and compliance criteria. The enactment of this bill is contingent upon the passage of Senate Bill No. 631.

Statutes affected:
Senate Introduced Bill: 205.54