Data Center Abatements

Data Center Abatements A partial abatement from personal property tax and sales and use tax are available to data center companies that locate or expand their business in Nevada. Abatements apply to collocated businesses of the data center. Data Center Abatements Sales and use tax abatement for up to 10 or 20 years on qualified capital equipment purchases, with reductions in the rate to as low as 2%. *Requires the Governor’s Office of Economic Development (GOED) Board to approve a reduction to 2% by a two-thirds vote. An abatement on personal property not to exceed 75% over a maximum of 10 or 20 years. Requirements to Qualify 10-year Abatements: Jobs: Within 5 years employ 10 full-time employees who are Nevada residents Wages: Pay at least 100% of the Statewide Average Wage Capital Investment: Within 5 years, invest at least $25 million in cumulative capital expenditures between the applicant and tenants 20-year Abatements: Jobs: Within 5 years employ 50 full-time employees who are Nevada residents Wages: Pay at least 100% of the Statewide Average Wage Capital Investment: Within 5 years, invest at least $100 million in cumulative capital expenditures between the applicant and tenants. Company applying for Data Center Tax Abatements also must meet following criteria: Maintain the business in Nevada for 10 years. Register pursuant to the laws of Nevada. Offer medical insurance plan and pay at least 65% of the insurance premium costs. Ensure that 50% or more of all workers engaged in construction of the data center are Nevada residents.