Florida has adopted an emergency rule for the sales and use tax exemption for purchases of data center property. The exemption was made effective July 1, 2017. Data center property includes:
- construction materials;
- component parts;
- machinery and equipment;
- software; and
Generally, the exemption applies to data center property used exclusively at a data center to construct, outfit, operate, support, power, cool, dehumidify, secure, or protect the data center and contiguous dedicated substations.
Also, the exemption requires that:
- the data center’s owners and tenants make a cumulative, minimum capital investment, after July 1, 2017, of $150 million for the data center;
- the data center must have a critical IT load of 15 megawatts or higher; and
- each individual owner or tenant within the data center must have a dedicated critical IT load of 1 megawatt or higher.
Finally, these requirements must be met within five years after construction of the data center begins.
The emergency rule provides other requirements, definitions, and application procedures.
Emergency Rule 12AAER17-03, Florida Department of Revenue, effective September 26, 2017