LANSING, Mich., Nov. 8, 2023 — The House of Representatives passed legislation today on a bipartisan basis that will incentivize tech companies to create jobs in Michigan. House Bills 4905 and 4906 exempt data center equipment from use tax and sales tax, respectively, for a period of time if the data center meets certain qualifications, including a minimum aggregate salary for its employees.
“These are good-paying jobs in a highly in-demand field. Companies have to meet a minimum investment, and if they ever fail to qualify, they will pay back all their incentives, plus interest. In addition, these exemptions have a sunset, so if they’re not working, they will simply expire” said state Rep. Joey Andrews (D-St. Joseph), sponsor of HB 4906. “The need for data centers is only going to rise, and Berrien County already stands to benefit from this kind of investment. This legislation can similarly change communities around the state for the better.”
The bills now move to the Senate.