The bill amends the Use Tax Act to establish tax exemptions for the storage, use, or consumption of data center equipment sold to owners or operators of qualified data centers and colocated businesses, effective from January 1, 2016, to December 31, 2050. The exemptions will continue beyond January 1, 2022, and January 1, 2026, contingent upon meeting job creation thresholds of at least 400 and 1,000 data center industry jobs, respectively. The Michigan Strategic Fund is designated to report on job creation to legislative leaders and the governor. Additionally, the bill introduces provisions for enterprise data centers, allowing tax exemptions for equipment sold to qualified entities or their affiliates, contingent upon holding a valid certificate from the Michigan Strategic Fund, with an emphasis on environmental practices and a deadline of December 31, 2029, for issuing new certificates.

Moreover, the bill outlines specific job creation and property tax benefit requirements for qualified entities, mandating the creation and maintenance of a minimum of 30 new jobs with wages at least 150% of the prosperity region median wage until December 31, 2050, or until December 31, 2065, for facilities on brownfield sites or former power plants. It also stipulates that these facilities must not receive state or local property tax benefits without local governing body approval. The bill requires facilities to achieve certification under recognized green building standards within three years of operation, utilize municipal water systems with available capacity, and procure clean energy equivalent to 90% of their forecasted electricity usage. New legal language clarifies compliance with the enterprise data center construction labor act for facilities constructed after its effective date, and the bill's enactment is contingent upon the passage of two other specified bills.

Statutes affected:
House Introduced Bill: 205.94