Massachusetts Enacts Sales Tax Exemption for Qualified Data Centers

• Massachusetts Legislature passed an economic development bill that includes a sales tax exemption for qualified data centers
• Governor Maura Healey signed the bill into law, effective November 20, 2024
• The exemption covers 100% of purchases related to computers, equipment, software, and electricity for certified data centers
• It also includes building and construction costs for these data centers
• Massachusetts joins other US states in offering tax incentives to attract data center investments
• Criteria for a data center to qualify include having uninterruptible power supplies, sophisticated fire suppression systems, and enhanced security measures
• Additional qualifications include being located in Massachusetts, occupying at least 100,000 square feet, costing at least 50 million dollars, and maintaining at least 100 jobs in the state
• The exemption applies to a wide range of equipment and infrastructure essential for data center operations
• Eligible purchases for the tax exemption extend over a 20-year period from the date of certification

Source: morganlewis.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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