Resource Library

Tax Incentives for Data Centers

Summaries of tax incentives available for data center users are an opportunity in various markets. While companies often individually lobby taxing authorities, below is a summary of data center tax incentives by state.

ALABAMA
offers up to 30 years of tax breaks for data centers investing $400 million and creating at least 20 jobs with an average annual compensation of $40,000.

ALASKA
No known data center tax incentive legislation, however, there is no state-wide sales tax.

ARIZONA
Arizona offers qualifying data centers investing at least $50 million a sales tax exemption for data center equipment. For more information, go to Arizona State Sales Tax Incentives.

ARKANSAS
No known data center tax incentive legislation.

CALIFORNIA
No known data center tax incentive legislation.

COLORADO
No known data center tax incentive legislation.

CONNECTICUT
No known data center tax incentive legislation.

DELAWARE
No known data center tax incentive legislation, however, the state has no property or sales tax.

FLORIDA
No known data center tax incentive legislation.

GEORGIA
Georgia offers a sales tax exemption for equipment in data centers investing at least $15 million annually.

HAWAII
No known data center tax incentive legislation.

IDAHO
No known data center tax incentive legislation.

ILLINOIS
No known data center tax incentive legislation.

INDIANA
Indiana offers data centers investing at least $10 million can receive local personal property tax exemptions on their equipment.

IOWA
Iowa offers sales tax breaks to data centers investing as little as $1 million, with larger incentives for projects topping $200 million. It also has no property tax on equipment.

KANSAS
While it has no specific data-center incentive, Kansas charges no property tax on new equipment, which is beneficial for data centers.

KENTUCKY
Kentucky offers a sales tax refund for computer system equipment for data centers investing at least $100 million.

LOUISIANA
No known data center tax incentive legislation.

MAINE
No known data center tax incentive legislation.

MARYLAND
No known data center tax incentive legislation.

MASSACHUSETTS
No known data center tax incentive legislation.

MICHIGAN
No known data center tax incentive legislation.

MINNESOTA
Minnesota offers data centers of at least 25,000 square feet and costing at least $30 million a 20-year sales tax exemption on equipment and energy and a permanent property tax exemption on equipment.

MISSISSIPPI
Mississippi offers a sales tax exemption on computer equipment for data centers investing at least $50 million and creating at least 50 jobs paying 150 percent of the average state wage.

MISSOURI
Missouri offers sales tax exemptions to new data centers investing at least $25 million and employing at least 10 people in well-paying jobs. Existing data centers can qualify by investing at least $5 million and adding five well-paying jobs.

MONTANA
No known data center tax incentive legislation, however, there is no state-wide sales tax.

NEBRASKA
Nebraska offers several tiers of sales and property tax breaks to data centers, starting with those that invest at least $3 million and employ at least 30 people, or invest at least $37 million while holding employment steady.

NEVADA
There are partial sales and property tax exemptions for a select group of qualifying data centers that invest more than $25 million and create 10 jobs at average wages.

NEW HAMPSHIRE
No known data center tax incentive legislation, however, there is no state-wide sales tax.

NEW JERSEY
No known data center tax incentive legislation.

NEW MEXICO
No known data center tax incentive legislation.

NEW YORK
New York provides a sales tax exemption for equipment used by Internet data centers.

NORTH CAROLINA
North Carolina provides a sales tax exemption for equipment and electricity used by data centers that invest at least $150 million in poorer counties or $225 million in other counties.

NORTH DAKOTA
North Dakota offers a sales tax exemption on computer equipment for data centers of at least 16,000 square feet.

OHIO
Ohio Tax Abatement
Ohio offers sales tax abatement for data centers that invest at least $100 million and creates annual payroll of $1.5 million or more. There is also no tax on tangible personal property in the state for general business filers.

OKLAHOMA
Oklahoma provides a sales tax exemption for equipment bought by businesses engaged in computer services or data processing, so long as most of the revenue comes from out-of-state sales.

OREGON
There is no sales tax in Oregon and companies can receive property tax exemptions in local enterprise zones such as in Hillsborough.

PENNSYLVANIA
Pennsylvania offers no specific data-center incentives but has provided a relatively small amount of aid to some data centers through general economic-development programs.

RHODE ISLAND
No known data center tax incentive legislation.

SOUTH CAROLINA
South Carolina offers a sales tax exemption on computer equipment and electricity used in data centers that invest at least $50 million and employ at least 25 people in well-paying jobs.

SOUTH DAKOTA
South Dakota has no specific data-center incentives but has offered aid to at least a couple of data-center projects through its general economic development programs.

TENNESSEE
Tennessee offers sales tax breaks on computer equipment and electricity for data centers that invest at least $250 million.

TEXAS
Texas offers a sales tax exemption on equipment and electricity for data centers that contain at least 100,000 square feet, invest at least $200 million and employ at least 20 people at above-average wages.

UTAH
Utah has made use of its general incentive programs to lure a variety of data centers, however, the state has no known data center tax incentive legislation.

VERMONT
No known data center tax incentive legislation.

VIRGINIA
Virginia offers a sales tax exemption for data center equipment to those data centers that qualify by meeting both a capital investment and employment threshold.

WASHINGTON
Washington has a sales tax exemption for data center equipment in certain rural or developing areas of the state.

WEST VIRGINIA
Qualifying data centers can receive both a sales tax exemption and a property tax abatement on equipment.

WISCONSIN
No known data center tax incentive legislation.

WYOMING
Wyoming offers data centers that invest at least $5 million a sales tax exemption on computer equipment. Data centers that invest at least $50 million also can get a sales tax break on power supplies and cooling equipment.