Michigan Data Center Tax Exemption

Feb 15th, 2016

The Michigan Department of Treasury released guidance explaining the new sales and use tax exemption for data centers.

As of January 1, 2016, data center equipment is exempt when sold to a qualified data center or colocated business for assembly, use, or consumption in a qualified data center. Data center equipment sold to a contractor is also exempt when the contractor affixes the equipment to a qualified data center.

A "qualified data center" is a data center facility in Michigan that receives 75% or more of its revenue from unrelated colocated businesses.

https://www.michigan.gov/documents/taxes/Data_center_exemption_notice_513912_7.pdf