Section 23A:70 - Sales and use tax exemptions for data centers(a) The terms defined in paragraph (zz) of section 6 of chapter 64H shall apply to this section unless the context clearly requires otherwise.(b) The secretary of the executive office of economic development, in consultation with the commissioner of revenue, shall determine qualifications for qualified data centers, to qualify for a sales and use tax exemption pursuant to paragraph (zz) of section 6 of chapter 64H.(c) To apply for the sales and use tax exemption pursuant to paragraph (zz) of section 6 of chapter 64H, the owner or operator of a data center shall submit to the secretary of economic development an application on a form prescribed by the commissioner of revenue that shall include: (i) the name, address and telephone number of the owner or operator;(ii) the address of the site where the qualified data center is or will be located, including, but not limited to, information sufficient to identify the facility composing the data center, and the expected commercial operations date of each data center building that will be located at the data center facility;(iii) the anticipated aggregate square feet of the qualified data center for which the sales and use tax exemption is being sought; provided, that in determining whether the facility has the required square footage, the total square footage of the data center facility shall include the space that houses the computer information technology equipment, networking, data processing or data storage, including, but not limited to, servers and routers and the following spaces that support the operation of enterprise information technology equipment including, but not limited to, office space, meeting space, loading dock space and mechanical and other support facilities;(iv) the anticipated investment associated with the qualified data center for which the sales and use tax exemption is being sought;(v) the anticipated number of jobs that the data center will create and maintain within 1 year, 5 years and 10 years of operations after certification; and(vi) an affirmation, signed by an authorized executive representing the owner or operator, that the data center is expected to satisfy the certification requirements in this section as a qualified data center.(d)(1) Within 60 days after receiving a completed application, the secretary of economic development shall review the application submitted by the owner or operator of a data center and certify the data center as a certified qualified data center if the data center meets all requirements of this section.(2) The secretary shall issue a written certification that the data center qualifies for the sales and use tax exemption or provide written reasons for its denial and an opportunity for the applicant to cure any deficiencies.(3) Failure to approve or deny the application within 60 days after the date the owner or operator submits the application to the secretary shall constitute approval of the qualified data center and the secretary shall issue written certification to the owner or operator within 14 days.(4) The certification shall provide the following information related to each data center:(i) the effective date of the certification;(ii) the total square footage of the qualified data center;(iii) the total amount of land costs, construction costs, refurbishment costs and eligible data center equipment; and(iv) the beginning and ending dates of the sales and use tax exemption for the first data center building, which shall begin on the effective date of the certification and be valid for qualification period, and for a qualified data center that is comprised of more than 1 data center building, the expected commercial operations dates and expected qualification periods for subsequent data center buildings expected to be located at the qualified data center.(5) The secretary shall send a copy of the certification to the commissioner of revenue.(e) The effective date of the certification shall be the date on which the application was submitted to the secretary or a prospective date stated in the application that does not exceed 5 years after the date on which the application was submitted; provided, that the certification shall be valid through the qualification period.(f) The secretary and commissioner shall review the certification after 10 years.(g)(1) For the purposes of this section, the term "material noncompliance" shall mean the failure of a qualified data center to substantially achieve the investment requirements and minimum number of jobs pursuant to paragraph (zz) of section 6 of chapter 64H.(2) The secretary may revoke the certification of a qualified data center after an investigation by the executive office of economic development, in consultation with the department of revenue, and a written determination that the qualified data center is in material noncompliance with this section, paragraph (zz) of section 6 of chapter 64H or the certification.(3) Revocation shall take effect on the first day of the tax year in which the executive office of economic development determines the qualified data center to be in material noncompliance. The commissioner of revenue shall, as of the effective date of the revocation, disallow any credits, exemptions or other tax benefits allowed by the original certification of tax benefits pursuant to paragraph (zz) of section 6 of chapter 64H.(h) Each qualified data center shall file a report with the secretary and commissioner prior to the end of the tenth year of the qualification period detailing whether it has met the specific investment requirements pursuant to paragraph (zz) of section 6 of chapter 64H.(i) The secretary, in consultation with the commissioner of revenue, shall promulgate regulations and shall issue instructions or forms necessary for the implementation of this section.Mass. Gen. Laws ch. 23A, § 23A:70
Added by Acts 2024, c. 238,§ 47, eff. 11/20/2024.