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Florida Data Center Tax Exemptions Started July 1

by DMA Staff | Jul 25, 2017
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There is no question that data centers have become a hot property from the perspective of states looking for economic development. Sizable data center projects, with investments into the multi-billion dollar range, have enough influence to change the way that perspective locations do business and motivate local government to pass tax laws advantageous specifically to the data center business.

Fortunately, Florida has joined several other states with sales tax exemptions for data centers. The state legislature have passed it and Governor Rick Scott has signed the legislation for sales tax exemptions for large data center projects. The law goes into effect July 1, 2017.

The Rundown: The new Sunshine State law eliminates sales and use tax for data centers, infrastructure, equipment, personal property, and electricity. However, to qualify for the exemption, a company must:

  • Make a capital investment of $150 million or greater towards a data center after July 1, 2017
  • The data center must be able to handle 15MW or greater when operating. If the data center has tenants, then the tenants must operate at 1MW or greater
  • The data centers must be located within the state of Florida and operational by June 30, 2022

There is no limitation on the duration of the exemption as long as the data center provides minimal reporting to the Florida Department of Revenue every five years to ensure continued qualification. However, the legislation does contain a claw back provision if the requirements are not met in their entirety.

Link to the Florida legislation going into effect on July 1, 2017.

If you have any questions or want more information, please click here.