Incentive Spotlight
Michigan Enterprise Data Center Sales & Use Tax Exemptions Program

Program Overview

Michigan provides discretionary sales and use tax exemptions to new enterprise data centers that meet certain investment, employment, and wage requirements. Qualifying operations may receive the benefit through 2050 upon approval by the state of Michigan after meeting certain eligibility and compliance requirements.

Benefits

Qualified enterprise data centers will enjoy exempt status on sales and use taxes related to certain eligible investments after meeting eligibility criteria.

Eligibility

• Facility located in the state of Michigan
• One or more buildings at a site must be intended for use as a Data Center operation
• Must invest at least $250 Million in new equipment
• Must create at least 30 new jobs
• New jobs must pay at least 150% of the area median wage
• New jobs must be maintained through 2050

Exclusions

• Facility cannot have certain local tax abatements without local resolution
• Facility cannot be served electricity by certain tariff rates

Additional Environmental Considerations

• Facility’s attainment of certain “green building standards” within 3 years of being placed in service
• Facility’s use of municipal water services
• Operation’s procurement of clean energy
• Operation’s participation in voluntary green pricing programs with area electric utility