Sales and Use Tax Exemption for Data Center Equipment

S.B. 397 of 2020 created a sales and use tax exemption for certain qualified personal property used by data centers that meet the qualifications specified in the law. Eligible equipment includes HVAC equipment and energy storage systems. The business must invest at least $2 million in qualified data center personal property if the business located in a Tier 1 Area, and invest at least $5 million qualified data center personal property if the business is located in any other area in the State. The business must also create at least five qualified positions. The positions must be full-time, pay 150% of the State minimum wage, be filled for 12 months and be a "net new" job to Maryland. The business must create the minimum number of jobs in a three-year period.