Data center tax breaks advance in Mich. Senate

Posted at 9:59 AM, Dec 03, 2015
and last updated 2015-12-03 09:59:48-05

LANSING, Mich. (AP) — Michigan lawmakers are continuing to approve tax breaks to land a major data center project in the state.

A committee on Thursday passed the Senate’s version of the legislation, which appears poised to clear the Senate later in the day. The House also could vote on the tax exemptions a day after one of its committees approved bills.

The legislation is needed to ensure Las Vegas-based data center developer Switch locates a mega-campus near Grand Rapids. It would be Switch’s first facility in the eastern United States.

The tax exemptions also would apply to roughly 40 existing Michigan data centers.

The House bills would exempt data center servers and other equipment from all sales and use tax. The Senate bills would free them from two-thirds of the 6 percent taxes.