Data Center Maryland Sales and Use Tax Exemption Incentive Program

About this funding opportunity

Turn on more accessible mode

Turn off more accessible mode

Sign In

Menu Menu

Maryland.gov State Directory State Agencies Online Services About Commerce Financial Incentives News, Events & Documents Press Room Events Calendar Document Library MDBIZ News Blog Why Maryland

Press Room

Events Calendar

Document Library

MDBIZ News Blog Data Center Maryland Sales and Use Tax Exemption Incentive Program

Page Content

Data centers that locate or expand in Maryland and create new full-time positions may receive an exemption from Maryland sales and use tax on the purchase of qualified data center personal property. BENEFITS

A business is eligible for a 10-year consecutive benefit period, subject to an annual renewal. Within the first three years after submitting an application, the business must create at least five qualified positions and make a minimum investment of: At least $2 million in qualified data center personal property for a business located within a Tier 1 Area, and At least $5 million in qualified data center personal property for a business located in any other area of the State.

The benefit period expands to 20 years, subject to annual renewal, if the business invests at least $250 million in qualified data center personal property within the first ten years after submitting an application.

Note: Tier 1 Areas include: Baltimore City, Allegany, Caroline, Dorchester, Garrett, Kent, Somerset, Washington, Wicomico and Worcester Counties. Tier 1 Areas also include Opportunity Zones located in any Maryland county. ELIGIBILITY Certification, A business must be certified as a "Qualified Data Center" by the Maryland Department of Commerce. Investment Minimum, 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. Job Creation Minimums, The business must 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.

Effective date 150% State Minimum Wage

1/1/2020 $16.50 1/1/2021 $17.40 1/1/2022 $18.30 1/1/2023 $19.20 1/1/2024 $22.50 1/1/2025 $22.50 APPLY

The business must submit an Eligibility Application to Commerce. Commerce will issue a Certificate of Eligibility and notify the Comptroller's Office who will issue the sales and use tax exemption certificate to the business.

Application Materials Application RESOURCES Chapter 640 (Senate Bill 397) Maryland Energy Administration (MEA) Data Center Energy Efficiency Grant Program Comptroller Sales & Use Tax Tip #28 CONTACT

For more information, please contact:

Amy Poad

Tax Specialist, Tax Incentives

Department of Commerce

401 E. Pratt Street

Baltimore, MD 21202

amy.poad@maryland.gov

410 767 0429 (C) FREQUENTLY ASKED QUESTIONS What is the Data Center Maryland Sales and Use Tax Exemption Eligibility Incentive Program?

This program incentivizes data center investment and job creation by exempting sales and use tax on the purchase data center personal property. Who qualifies for the tax incentive?

A data center located in the State in which an individual or a corporation, within 3 years after submitting an application for the sales and use tax exemption, has created at least five qualified positions and invested at least $2 million in qualified data center personal property if the facility is located in a Tier 1 Area or invested at least $5 million in qualified data center personal property if the facility is located in any other county of the State. When will I qualify?

The business may submit an Eligibility Application to Commerce before commencing the project. How long does the benefit last?

The certificate of eligibility may be renewed each year for no more than 10…

Topic areas: Public Policy and Governance, Information and Communication Technologies (ICT).

Funding amount

This grant provides Varies in funding.

Deadline

Applications are accepted on a rolling basis; there is no single fixed deadline.

Who can apply

This opportunity is open to the following applicant types:

• Not specified by the program.

Eligibility

The program did not publish a separate eligibility statement. See the official opportunity page for the full eligibility criteria.

Agency

Data Center Maryland Sales and Use Tax Exemption Incentive Program is administered by Maryland Department of Commerce (MD Commerce), listed via Maryland Department of Commerce.