South Carolina Data Center Sales Tax Law Signed
- Sales Tax News
- Jun 13, 2012 | Susan McLain
South Carolina Governor Nikki Haley signed House Bill 3720 into law June 7, 2012. H3720 “[p]rovides a sales tax exemption on computers, computer equipment, computer hardware or software, and electricity for data centers investing at least $50 million in South Carolina over a five-year period of time.”
“Computer Equipment,” according to the law, means “…original or replacement servers, routers, switches, power units, network devices, hard drives, processors, memory modules, motherboards, racks, other computer hardware and components, cabling, cooling apparatus, and related or ancillary equipment, machinery, and components, the primary purpose of which is to store, retrieve, aggregate, search, organize, process, analyze, or transfer data or any combination of these, or to support related computer engineering or computer science research."
To qualify, a data center must be a new or existing facility at a single location in South Carolina and must:
- Provide infrastructure for hosting or data processing services
- Have power and cooling systems that are created and maintained to be concurrently maintainable with redundant capacity OR
- Have a single distribution path with an investment of at least $50 million in real or personal property or both over a 5-year period OR
- Have a single distribution path with a minimum aggregate capital investment of $75 million in real or personal property over a 5-year period
The data center must create and maintain at least 25 full-time jobs for at least 3 years after creation.
The exemption is effective June 7, 2012 (immediately).
Check out what nearby Virginia is doing to keep data centers in their state: Virginia Sales Tax Law Friendly To Facebook