On Dec. 23, 2015 Gov. Rick Snyder signed into law tax-reform legislation that gives data centers in Michigan exemption on sales and use taxes. The tax breaks are contingent on the data center industry collectively creating 400 new jobs by 2022 and 1,000 by 2026.

The law specifies the sale and use of data center equipment, and includes computers, servers, and routers, as well as any related equipment used to build a data center in Michigan. It does not include third-party equipment used to maintain a data center’s power supply. It went into effect Jan. 1.

We think this helps put Michigan on the forefront of the data center and cloud industries. We’ve always believed that Michigan and Indiana are fantastic places to keep your IT infrastructure. Cool environment, safe from natural disasters and very cost-effective relative to the coasts. We can now add tax incentives to the list of benefits. We’ve never been more proud to be the leading private cloud and data center provider in Michigan and thankful for the many clients we’ve had these past 15 years.  No longer is Michigan just fly-over country!

The state Treasury Department, which will enforce the tax exemptions, is still working out the logistics of administrating the breaks but we will keep you updated as that information becomes available.

For more information, read the law in its entirety at Michigan’s Legislature website. Financial analyses from the House and Senate are also available here and here, respectively.