Section 47:305.73 - Exemptions; data center facility equipmentA. As used in this Section, the following terms shall have the meanings ascribed to them in this Subsection unless the context clearly indicates otherwise:(1) "Approved data center facility" means a data center facility that is located in Louisiana and certified by the Department of Economic Development.(2) "Data center" and "data center facility" mean a facility, campus of facilities, or interconnected facilities located within Louisiana which has a primary business purpose of processing, storage, retrieval, or communication of data, and was developed to power, cool, secure, or connect its own equipment or the equipment of its customers.(3)(a) "Data center equipment" means equipment or software purchased or leased for the processing, storage, retrieval, or communication of data including all of the following: (i) Servers, routers, connections, and other enabling machinery, equipment, software, and hardware, regardless of whether the property is affixed to or incorporated into immovable property used in the processing, storage, retrieval, or communication of data.(ii) Equipment used in the operation of computer equipment or software, including component parts, refreshments, replacements, and upgrades, regardless of whether the property is affixed to or incorporated into immovable property.(iii) Equipment necessary for the transformation, generation, distribution, or management of electricity required to operate computer server equipment, including substations, generators, uninterruptible energy equipment, fuel piping and storage, cabling, duct banks, switches, switchboards, batteries, testing equipment, and backup generators.(iv) Equipment necessary to cool and maintain a controlled environment for the operation of computer servers and the data center, including chillers, refrigerant piping, fuel piping and storage, adiabatic and free cooling systems, cooling towers, water softeners, air handling units, indoor direct exchange units, fans, ducting, and filters.(v) Water conservation systems, including facilities or equipment designed to collect, conserve, and reuse water.(vi) Computer server equipment, including chassis, networking equipment, switches, racks, fiber optic and copper cabling, trays, and conduit.(vii) Monitoring equipment and security systems.(viii) Conduits, ducting, and fiber-optic and copper cabling, including any such items that are located outside the data center but within Louisiana, directly related to connecting one or more distributed approved data center locations.(ix) Equipment, materials, and services necessary for the development, acquisition, construction, expansion, and renovation of a qualified data center, including but not limited to construction and building materials, site characterization and assessment services, engineering services, and design services used directly and exclusively in a qualified data center.(x) Modular data centers and pre-assembled components used in the manufacturing of such centers.(xi) Pre-assembled components of any item listed in this Subparagraph.(b) The term "data center equipment" shall not mean office equipment or supplies, equipment or supplies used primarily in sales activities or transportation activities, tangible personal property not listed in Subparagraph (a) of this Paragraph that is incorporated into immovable property, and tangible personal property that is rented or leased for a term of one year or less.(4) "Department" means the Department of Revenue.(5) and (6) Repealed by Acts 2024EX3, No. 11,s. 4 . B.(1)(a) Subject to the limitation provided in Subparagraph (b) of this Paragraph, Louisiana state and local sales and use taxes shall not apply to eligible data center equipment purchased by and expenditures of an approved data center facility for the development, acquisition, construction, lease, repair, refurbishment, expansion, and renovation of a qualified data center, including but not limited to costs of construction and building materials, site characterization and assessment, engineering, design, and labor and installation services used directly and exclusively in a qualified data center.
(b) Only purchases made on or after July 1, 2024, shall be eligible for the exemption authorized in this Subsection. (2) To be certified as an approved data center by Louisiana Economic Development, the data center facility operator shall provide a sworn attestation that the project will create a minimum of fifty new direct, permanent jobs in Louisiana and intends to expend at least two hundred million dollars in new capital investment in Louisiana on or after July 1, 2024, and before July 1, 2029. An approved data center shall be issued a Direct Payment Number in accordance with the applicable provisions of R.S. 47:303.1.(3)(a) A facility that has been certified as an approved data center facility shall enter into an agreement with Louisiana Economic Development that comports with the requirements of this Paragraph.(b) The agreement shall provide a term of exemption eligibility, an initial term of twenty years, a list of all eligible recipients of the exemption, language that authorizes the state to terminate the agreement and language that authorizes the state and local taxing authority to assess and collect any sales and use taxes due if the data center facility fails to fulfill, or Louisiana Economic Development determines that the facility will be unable to fulfill, its statutory and contractual obligations.(c) Upon the expiration of the initial term of the agreement, Louisiana Economic Development may renew the agreement for an additional ten years.(d) Louisiana Economic Development may include in the agreement any additional conditions that it deems appropriate.(4) The department may utilize any collection remedy authorized by Chapter 18 of this Subtitle based on termination of the agreement with Louisiana Economic Development or a determination that a purchase did not qualify for the exemption. C. Any overpayment resulting from an approved data center's payment of sales and use tax on exempt purchases or expenditures shall not be entitled to interest on refunds provided for in R.S. 47:337.80 or 1624. D. The department and the Louisiana Uniform Local Sales Tax Board, respectively, may promulgate rules and regulations in accordance with the Administrative Procedure Act as necessary for the implementation of this Section. Acts 2020 1st Ex. Sess., No. 35, §1, eff. July 1, 2020.Amended by Acts 2024EX3, No. 11,s. 4, eff. 12/4/2024, app. 1/1/2025.Amended by Acts 2024EX3, No. 11,s. 2, eff. 12/4/2024, app. 1/1/2025.Amended by Acts 2024, No. 730,s. 1, eff. 7/1/2024.Added by Acts 2020EX1, No. 35,s. 1, eff. 7/1/2020.