Effective July 1, 2020, Maryland has enacted a sales and use tax exemption on certain personal property for qualified data centers. “Qualified data center” means a data center located in Maryland in which an individual or corporation, within 3 years after submitting an application for the exemption has:
A qualified position is a full-time position of indefinite duration that pays at least 150% of the state minimum wage, is newly created because a data center begins or expands in a single location in the state and is actually filled.
“Qualified Data Center” includes:
“Qualified data center personal property” includes:
Sales and use tax do not apply to the sale of qualified data center personal property for use at a qualified data center if the buyer provides the vendor with evidence of their eligibility for the exemption.
Interested individuals or corporations must file an application for the data center exemption. If approved, the Department will certify the applicant’s eligibility. The certificate of eligibility must be renewed each year and may not be renewed for more than 10 consecutive years (20 consecutive years if the individual or corporation invests at least $250 million in qualified data center personal property). For at least 3 years after the termination of a certificate, the individual or corporation must maintain certain specified records.
For tax years beginning after June 30, 2020, local governments may exempt or reduce the property tax assessment of qualified data center personal property. (Ch. 640 (S.B. 397), Laws 2020)