Incentive Spotlight
Wisconsin Data Center Sales and Use Tax Exemption 

Benefits

The primary benefit of Wisconsin’s Data Center Sales and Use Tax Exemption is the exemption from sales and use tax on the sale, lease, purchase, or use of eligible tangible personal property. This includes:

• Tangible personal property used exclusively for the development, construction, renovation, expansion, replacement, repair, or operation of a qualified data center
  Examples include computer server equipment, networking equipment, and other essential hardware.
• Tangible personal property used in the development, construction, renovation, expansion, replacement, or repair of a water cooling or conservation system used exclusively for one or more qualified data centers
  This includes equipment such as chillers and cooling systems.
• Tangible personal property sold to a construction contractor that, in fulfillment of a real property construction activity, becomes a component of the qualified data center

The exemption is valid for the duration of the data center’s operation, providing long-term tax savings. These exemptions significantly reduce the initial capital expenditure and ongoing operational costs, making Wisconsin an attractive location for data center investments.

Eligibility

Eligibility for Wisconsin’s Data Center Sales and Use Tax Exemption includes criteria such as:

• Business Type: Must be a business engaged in data center operations
• Investment Amount:
  • For counties with a population of less than 50,000: A minimum investment of $75 million in a qualified data center facility
  • For counties with a population between 50,000 and 99,999: A minimum investment of $150 million in a qualified data center facility
  • For counties with a population of 100,000 or more: A minimum investment of $200 million in a qualified data center facility
  • For buildings in multiple counties: The investment amount is based on the most populous county
• Job Creation/Retention: Commitment to creating and retaining significant employment within the data center
• Location Requirements: Data centers must be located in Wisconsin and meet the specified investment thresholds based on county population