The bill amends the General Sales Tax Act to establish tax exemptions for sales of data center equipment to qualified data centers and colocated businesses from January 1, 2016, through December 31, 2050. These exemptions are dependent on the creation of a specified number of jobs in the data center industry in Michigan, with local economic development corporations responsible for certifying and reporting job numbers to the Michigan Strategic Fund. The exemptions will remain in effect if at least 400 jobs are created by January 1, 2022, and at least 1,000 jobs by January 1, 2026. The Michigan Strategic Fund is also tasked with reporting job creation progress to legislative leaders and the governor.

Furthermore, the bill introduces provisions for enterprise data centers, allowing tax exemptions for equipment sales to qualified entities that maintain a capital investment of at least $250 million. It mandates the creation of a minimum of 30 qualified new jobs with wages at least 150% of the regional median wage, compliance with environmental standards, and certification under recognized green building standards. Facilities must also utilize municipal water and procure clean energy for 90% of their electricity needs. New provisions require compliance with the enterprise data center construction labor act for facilities built after its enactment, and the bill's enactment is contingent upon the passage of two related bills.

Statutes affected:
House Introduced Bill: 205.54