Missouri signs data centre tax incentive law
Tue 14 Apr 2015
Missouri has last week passed a law allowing incentives for data centre build and expansion projects. Signed on April 9th, the new scheme will offer a range of state and local sales tax exemptions typically incurred during the expansion and replacement of data centre facilities.
“Consistent with the fiscally responsible approach to economic development we’ve pursued from day one, this bill will help attract high-tech data centre investments and jobs — without putting our budget or taxpayers at risk,” said Missouri governor Jay Nixon, signee of the Senate Bill.
After a similar measure was vetoed last year on the grounds that it lacked sufficient protections around job creations and capital investment, the new law goes into extensive detail to address those issues. “This is a bipartisan fiscally responsible bill,” said bill sponsor Senator Mike Parson.
State officials have outlined that in order to qualify for the exemptions, the data centre projects must involve investment of at least $25mn (approx. £17mn) and create new jobs for at least ten people with salaries at or above 150% of the state average – and all in a three-year timeframe.
Further criteria stipulates that expanding or replacing the data centre facilities must result in at least $5mn of project investment over one year, and create at least five new positions which meet the salary requirements in a two-year period. The exemptions last for up to ten years.
“The bill will create jobs and encourage capital investment in communities across the state,” added Parson. “By bringing more high-tech jobs to our rural communities, we are working together to strengthen our economy and move Missouri forward.”
The incentives will provide tax exemptions for electricity, gas, water, telecommunications, equipment and materials used in facility construction and remodelling.