The bill amends the General Sales Tax Act to establish a tax exemption for sales of data center equipment to owners or operators of qualified data centers and colocated businesses, effective from January 1, 2016, to December 31, 2050. This exemption is contingent upon the creation of a minimum number of jobs in Michigan's data center industry, specifically requiring 400 jobs by January 1, 2022, and 1,000 jobs by January 1, 2026. The Michigan Strategic Fund is responsible for monitoring job creation and reporting to legislative leaders and the governor, with the continuation of the exemption dependent on meeting these job creation targets.

Additionally, the bill introduces provisions for enterprise data centers, including a certification process that mandates facilities to meet specific criteria, such as a minimum capital investment of $250 million. The Michigan Strategic Fund will oversee this certification and compliance, including the potential revocation of certificates for non-compliance. The legislation emphasizes environmental sustainability by requiring certified facilities to adopt practices that mitigate negative environmental impacts, achieve certification under recognized green building standards, and source at least 90% of their electricity from clean energy. It also clarifies definitions related to job creation and property tax benefits while removing outdated references to specific dates and conditions. Overall, the bill aims to foster economic development in the data center sector while ensuring adherence to environmental standards.

Statutes affected:
House Introduced Bill: 205.54