Sales and Use Tax Exemption for Data Center Equipment

October 21, 2020

Summary

S.B. 397 of 2020 created a sales and use tax exemption for certain qualified personal property used by data centers that meet the qualifications specified in the law. Eligible equipment includes HVAC equipment and energy storage systems. The business must invest at least $2 million in qualified data center personal property if the business located in a Tier 1 Area, and invest at least $5 million qualified data center personal property if the business is located in any other area in the State. The business must also create at least five qualified positions. The positions must be full-time, pay 150% of the State minimum wage, be filled for 12 months and be a "net new" job to Maryland. The business must create the minimum number of jobs in a three-year period.

Program Overview

Implementing Sector:	State
Category:	Financial Incentive
State:	Maryland
Incentive Type:	Sales Tax Incentive
Web Site:	https://commerce.maryland.gov/fund/data-center-maryland-sales-and-use-tax-exemption-incentive-program
Administrator:
Start Date:
Eligible Renewable/Other Technologies:	Chillers Air conditioners Other EE Lithium-ion

Authorities

Name:	S.B. 397
Date Enacted:	05/08/2020
Effective Date:	07/01/2020

Contact

Name:	Kelly Adams
Organization:	Maryland Department of Commerce, Office of Fi
Address:
Phone:	(410) 767-6438
Email:	kelly.adams1@maryland.gov

This information is sourced from DSIRE; the most comprehensive source of information on incentives and policies that support renewables and energy efficiency in the United States. Established in 1995, DSIRE is operated by the N.C. Clean Energy Technology Center at N.C. State University.