Datacenter Materials

Datacenter Materials Datacenters locating or expanding in South Carolina may be exempt from some sales and use taxes when the new or expanding facility meets certain investment and job creation requirements. For a company to qualify for these exemptions, the expanding and/or new facility must: Be certified by the SC Department of Commerce as a qualifying datacenter; Invest at least $50 million (or a combined $75 million with one or more other companies) in real or personal property at a single facility over a five year period; Create at least 25 new jobs within a five year period with an average wage that is at least 150% of the state or county per capita wage, whichever is lower; and Maintain the 25 jobs for at least 3 years. The items that may be exempt from sales and use tax are: computer equipment, software and electricity directly used in datacenter operations. Once qualified for this exemption, all future computer equipment purchases are exempt. If the company does not meet the investment or job creation requirements, the company must pay back the entire amount of sales tax exempted. If the company meets the investment and job creation requirements within the five year period but fails to maintain the 25 jobs for three years, the company may obtain a pro-rata exemption on sales taxes paid for electricity but not for computer hardware or software.