Nov 21, 2024 | Posted by Abdul-Rahman Oladimeji
Legislators in the Michigan House of Representatives have approved extended tax breaks for data centers in a move aimed at attracting business from the hyperscalers. It was approved 64-45 in a vote led by the Democrats, but with support from many Republican lawmakers.
Rep. Joey Andrews, who sponsored the bill, said: “As technology continues to advance, it is imperative that legislation allows the state to remain competitive economically. “Southwest Michigan’s abundant freshwater resources and reliable nuclear energy infrastructure make it an ideal destination for data centers, particularly with the growing demand for such facilities.”
Rep. Joey Andrews, who sponsored the bill, said: “As technology continues to advance, it is imperative that legislation allows the state to remain competitive economically. “Southwest Michigan’s abundant freshwater resources and reliable nuclear energy infrastructure make it an ideal destination for data centers, particularly with the growing demand for such facilities.”
The bill extends the sunset on a use and sales tax exemption from the current 2035 date to 2050 – or 2065 if the data center is located on a brownfield site or a location that was used primarily as a power plant for electricity – and establishes the same exemptions for enterprise data centers. As well as investing $250 million, companies will have to create and maintain a minimum of 30 in-state jobs paying at least 150 percent of the prosperity region’s median wage to qualify for the tax break.
