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Paradise tax corners for data centers in the United States

High technology is an industry with a significant indicator of economic efficiency, and in many countries it is developing rapidly from year to year. Some companies are trying to find benefits during economic downturns, others are waiting for "green" technology to come to the fore. Regardless of the chosen strategy, there is always a need to expand the territory for the construction of a data center.



When choosing a construction site, it is worth paying attention to a number of factors, among which are real estate prices, weather conditions and natural disasters, the level of staffing, and now another selection parameter has been added. To benefit from the construction boom in IT, in the US, some states introduce tax breaks as additional benefits for potential development. Some states today offer specific benefits for data centers, and among them there are especially "tasty" options. And although taxes are historically not the most important criterion for choosing the location of the data center, it is still worth paying attention to it.
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Virginia


Virginia in recent years has introduced several tax breaks and incentive financial programs to establish itself as the best location for data centers on the east coast. In particular, Eshburn with the surrounding municipalities in the district of Lauden became an excellent place for the location of the data center, partly due to the proximity of the district to Washington.



In addition, Virginia has introduced a number of unique tax programs to make the staff the leading region for hosting. State laws exempt qualified data centers and hosting service providers from taxes on sales and rental of equipment, software, and other components related to data center operations. Plus, Law 1133 allows local authorities to set even lower tax rates for data centers.

Texas


The Lone Star State has one of the most friendly tax codes in the country, and this is especially well seen in terms of benefits for the data center. Qualified data centers are exempt from taxes on private property and other "mandatory" payments associated with such activities. The rules by which a data center is recognized as qualified are described in Law 1223 . At the same time, if office equipment is not subject to the law, then IT equipment and power grids fall.



According to the laws of Texas, the benefits are for one owner in one site, the minimum size of which is 100 thousand square meters. feet, which in principle means that any large site can accommodate many data centers that fall under tax breaks.

Arizona


As mentioned in the ServerLIFT blog , Arizona is among the states whose tax laws are loyal to the data center. For example, Law 2488 reduced rates for the construction of data centers, the purchase of IT equipment and the associated energy costs. Further, the 2009 Law introduces additional incentive programs for data center owners and “colocation” tenants.



“The state is very competitive in this regard,” said Silvia Kahn, vice president for selection and acquisition of sites for building data centers CyrusOne, for the Phoenix Business Journal. “Arizona has a fairly flexible legal framework and is ideal for the location of the data center, because the state is a good player in the financial market. This position is very attractive for customers who are looking for construction sites in neighboring states, and they choose us. ”

Colorado


Colorado has joined the list of states leading tax policy loyal to data centers. Law 1389 introduces benefits for the sale, storage and use of IT equipment for qualified data centers. The law covers equipment purchased for replacement and upgrade, as well as equipment that moves to Colorado from other places. It is proposed that the equipment can be used, stored or moved for 20 years from the date of sale.



According to an article in the Denver Business Journal, the bill is named one of the most important bills of this year. “We are currently conducting many excellent projects that can give good results. For the industry, this is a signal that we are interested in development, ”said Sandra Hagen Solin, a representative of the Colorado Technology Association.

Data centers are an important asset that can be cost-effective for each of the states. Since 2005, about 17 states have taken tax breaks for the data center and, as the authors of the law put it, “actively attract investment in this area.” The State Economic Development Office reported that data centers would qualify according to certain criteria:


The office reported that it would provide an analysis and assessment of the economic benefits of the introduction of tax benefits until 2021 and every 6 years thereafter. Taxes are only one of the many costs that affect the operation of data centers. However, it is quite a heavy burden, and even a small difference can affect the decision about the place of future construction.

Source: https://habr.com/ru/post/237309/


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