Legislators Approve Data Center Tax Breaks

After a nine-hour House session, both chambers passed bills to approve sales and use tax exemptions for collocated data centers in the state. Switch, a Nevada- based company looking to open an east coast hub in the Grand Rapids area, is among one of the companies affected.

SB 616 and SB 617 passed in the House 61-45 and concurred in the Senate 26-12. Amendments adopted from Representative Jim Townsend (D-Royal Oak) and Representative Winnie Brinks (D-Grand Rapids) require data centers throughout the state to create 400 jobs by 2022 and 1,000 by 2026. These increases are net increases. The sales and use tax exemption will sunset in 2035.

Representative Andy Schor (D-Lansing), sponsor of one of the House bills, commented “this important legislation will create good-paying technology jobs in Michigan and help stem the brain drain by ensuring that our talented workers can stay here in Michigan. It also provides excellent opportunities for our high-technology electrical workers, operating engineers, and other skilled trades.”

Governor Snyder’s press secretary, when asked if Snyder would sign the bills, commented that the governor plans to thoroughly review the bills before making his decision.

posted by PAA Online , Friday, December 18, 2015 11:19 AM
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