- Florida enacted a sales tax exemption for data centers in 2017 to attract investment.
- The exemption required a $150 million investment and a critical IT load of at least 15 MW.
- On June 30, 2025, Florida passed HB 7031, changing the sales tax exemption rules.
- Starting August 1, 2025, data centers under 100 MW will no longer qualify for the exemption.
- The change aims to focus benefits on larger data center projects.
- The new rule affects both current and planned facilities under 100 MW.
- Purchases of equipment, electricity, and construction materials by sub-100 MW data centers will become taxable.
- There is no grandfather clause; all projects lose the exemption regardless of prior certification.
- Only data centers with IT loads of 100 MW or greater will continue to receive the exemption.
- Audits may require repayment of taxes on purchases made after the effective date.
- Developers and contractors may face increased costs and need to renegotiate contracts.
- Tenants could breach lease terms if agreements assumed ongoing tax exemptions.
Source: useflexfinance.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.
