To attract technology and data centers companies, Indiana State Senate passed a bill to create tax breaks for data center construction in the state.
The bill, House bill 1405, is designed to exempt data center equipment and electricity used at a facility from business personal property tax as well as the state’s 7% sales tax, Data Centre Dynamics reports.
Introduced by state Representative Ed Soliday (R-Valparaiso), the bill offers exemptions only to companies investing between $25 million and $150 million over five years and procuring 75% of the materials and labor used in the construction of the data center through local vendors.
If all conditions are met, the tax breaks will apply for 25 years. The exemptions can be extended to 50 years if a developer invests $750 million in an Indiana data center.
The bill still needs one more approval before it becomes law.