Florida Extends Data Center Sales Tax Exemption

Governor DeSantis has extended the data center sales tax exemption through June 30, 2027. The exemption, which went into effect on July 1, 2017, is Florida’s first official tool to attract data center investment. The exemption eliminates sales tax and use tax for data centers, infrastructure, equipment, personal property, and electricity. The extension also changes the operational date of the qualified data center from June 30, 2022 to June 30, 2027.

To qualify for the exemption,

• A company must make a minimum $150 million cumulative investment;
• The data center must have a critical load of at least 15MW and a critical load of at least 1MW per each individual owner or tenant in the facility;
• Applications for exemption certificates must be made to the Florida Department of Revenue; and
• Reporting to the Department of Revenue will be required to demonstrate the exemption was utilized to the letter of the law.

Several of Florida’s larger utility companies already have economic development programs in place to attract heavy users, such as data centers. 

The legislation creating the data center sales and use tax exemption requires a review by the Florida Department of Revenue to assure continued qualification. It also contains a “claw back” provision if it is determined that the data center property does not meet the criteria for exemption.

The statute with the data center exemption can be found here:

TECHNICAL INFORMATION CONTACTS:

Allea Newbold
Principal
Ryan
813.228.7100
allea.newbold@ryan.com

Matt Lowell
Director
Ryan
321.251.2924
matt.lowell@ryan.com

The material presented in this communication is intended to provide general information only and should solely be seen as broad guidance and not directed to the particular facts or circumstances of any individual who may read this publication. No liability is accepted for acts or omissions taken in reliance upon the content of this piece. Before taking (or not taking) any action, readers should seek professional advice specific to their situation from Ryan, LLC or other tax professionals. For additional information about this topic, please contact us at info@ryan.com.