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 continuation of these exemptions beyond certain dates is contingent upon local economic development corporations certifying the creation of a specified number of jobs in the data center industry—at least 400 jobs by January 1, 2022, and 1,000 jobs by January 1, 2026. The Michigan Strategic Fund is responsible for reporting these job numbers to legislative leaders and the governor.

Additionally, the bill introduces new criteria for enterprise data centers, requiring a minimum capital investment of $250 million and the creation of at least 30 qualified new jobs with wages at least 150% of the regional median. It mandates that these facilities must not receive state or local property tax benefits unless approved by local governing bodies and must adhere to environmental standards, including green building certifications and the use of clean energy sources. The bill also clarifies definitions related to data center operations and tax exemptions, emphasizing the importance of environmental sustainability and the responsibilities of qualified entities in mitigating the environmental impacts of their operations.

Statutes affected:
House Introduced Bill: 205.94