In a move to solidify Michigan’s position as a hub for data center operations, the state legislature has amended the Use Tax Act with Senate Bill 237, which was signed by the governor on December 30, 2024. This legislation extends sales tax exemptions for data center equipment purchases by qualified data centers and related businesses through December 31, 2050. The exemption is further extended to December 31, 2065, for enterprise data centers located on brownfield redevelopment sites or former industrial power plant properties.
The bill stipulates that data centers must meet specific criteria, such as creating a minimum of 30 high-wage jobs and achieving a green building certification within three years of operation. Additionally, facilities must source 90% of their electricity from clean energy, reflecting Michigan’s commitment to sustainable economic development. The Michigan Strategic Fund will oversee compliance and issue certifications to ensure data centers meet these benchmarks.
This initiative underscores Michigan’s dedication to fostering technology-driven economic growth while aligning with environmental goals. By incentivizing data center expansion, the state aims to attract significant investments and create jobs in this burgeoning sector. (State of Michigan, Senate Bill No. 237, effective March 30, 2025)