This session, Florida approved legislation that provides for a sales tax exemption for data centers and goes into effect on July 1, 2017. The exemption eliminates sales and use taxes for infrastructure, equipment, personal property, software, and electricity used exclusively at a data center.
In order to qualify for the exemption, there must be a minimum cumulative capital investment of $150 million and the data center must have a critical IT load of 15 MW or higher.
There is no limitation on the duration of the exemption so long as the data center provides minimal reporting to the Florida Department of Revenue every five years to assure continued qualification.
The legislation does contain a claw back provision, if the requirements are not met in their entirety.
In addition to the exemption on purchases of electricity, Florida has a tool in its regulated electric utility arsenal to help attract a large industrial customer consuming a minimum of 2MW. Large users with suitable load profiles may enter into a commercial/industrial service rider agreement (CISR) to offer more aggressive utility rates.
The text of the bill can be found here.
This document provides a general summary and is for information/educational purposes only. It is not intended to be comprehensive, nor does it constitute legal advice. Specific legal advice should always be sought before taking or refraining from taking any action.