(2) the data center is composed of one or more buildings
totaling at least 250,000 square feet of space located or to be located
on a single parcel of land or on contiguous parcels of land that are
commonly owned or owned by affiliation with the qualifying operator;
(3) the qualifying owner, qualifying operator, or qualifying
occupant, jointly or independently, have agreed to:
(A) on or after June 1, 2015, create at least 40 qualifying
jobs on or before the fifth anniversary of the date that the data
center submits the application to the comptroller;
(B) on or after May 1, 2015, make a capital investment
of at least $500 million in that particular data center over a five-year
period beginning on the date the data center submits the application
to the comptroller. For purposes of this subparagraph:
(i) an expenditure can only be counted toward the capital
investment requirement if invoiced to the qualifying owner, qualifying
operator, or qualifying occupant on or after the date the data center
submits the application to the comptroller; and
(ii) purchases by a related corporate entity on behalf
of a qualifying owner, qualifying operator, or qualifying occupant
cannot be included in the capital investment calculation; and
(C) on or after June 1, 2015, contract for at least
20 megawatts of transmission capacity for operation of the qualifying
large data center project; and
(4) the applicant facility does not have an agreement
under which it receives a limitation on appraised value of property
for ad valorem tax purposes under Tax Code, Chapter 313 (Texas Economic
Development Act).
(f) Application process.
(1) A facility that is eligible to be certified under
subsection (d) of this section as a qualifying data center or under
subsection (e) of this section as a qualifying large data center project
by the comptroller shall apply for a registration number on the Texas
Application for Certification as a Qualifying Data Center, Form AP-233
or Texas Application for Certification as a Qualifying Large Data
Center Project, Form AP-236, as applicable. The application must include:
(A) the name, contact information, and authorized signature
for the qualifying occupant and, if applicable, the name, contact
information, and authorized signature for the qualifying owner and
the qualifying operator who will claim the exemption authorized under
this section;
(B) a business proposal summarizing the plan of the
qualifying owner, qualifying operator, or qualifying occupant, independently
or jointly, to meet the requirements in subsection (d) of this section
for qualifying data centers or subsection (e) of this section for
qualifying large data center projects; and
(C) a statement confirming that the qualifying owner,
qualifying operator, and qualifying occupant, as applicable, agree
that the statute of limitation provided in Tax Code, §111.201
(Assessment Limitation) on the assessment of tax, penalty, and interest
on purchases made tax-free under this section is tolled from the date
of certification until the fifth anniversary of that date, or until
such time as the comptroller is able to verify that the requirements
set out in subsection (d) of this section for qualifying data centers
or subsection (e) of this section for qualifying large data center
projects have been met, whichever is later.
(2) Information provided on and with the application
under this subsection is confidential under Tax Code, §151.027
(Confidentiality of Tax Information).
(3) After certifying the qualifying data center or
qualifying large data center project, the comptroller will issue a
separate registration number to the qualifying owner, the qualifying
operator, and the qualifying occupant, as applicable, based on the
registration number of the qualifying data center or qualifying large
data center project.
(g) Temporary exemption dates. The exemption under
this section is temporary. The exemption applies to qualifying purchases
made by a qualifying owner, qualifying operator, or qualifying occupant
during the exemption period applicable to the qualifying data center
or qualifying large data center project.
(1) The exemption period for a qualifying data center
or qualifying large data center project begins on the date the data
center is certified by the comptroller.
(2) A qualifying data center's exemption period ends
10 or 15 years from the certification date, depending on the amount
of capital investment made.
(A) A qualifying data center's sales tax exemption
expires 10 years from the date of certification by the comptroller
if the qualifying owner, qualifying operator, or qualifying occupant,
independently or jointly, makes a capital investment of at least $200
million, but less than $250 million, within the first five years after
certification.
(B) A qualifying data center's sales tax exemption
expires 15 years from the date of certification by the comptroller
if the qualifying owner, qualifying operator, or qualifying occupant,
independently or jointly, makes a capital investment of at least $250
million within the first five years after certification.
(3) A qualifying large data center project's exemption
period ends 20 years from the date of certification by the comptroller
provided the qualifying owner, qualifying operator, or qualifying
occupant, independently or jointly, makes a capital investment of
at least $500 million within the first five years after certification.
(4) The comptroller will audit each qualifying data
center and qualifying large data center project at its five year anniversary
to verify the amount of capital investment made and to verify that
the jobs creation requirement has been met. The comptroller will also
verify the contract for transmission capacity for operation of a qualifying
large data center project.
(5) Once all jobs are created, as required under subsection
(d) of this section for qualifying data centers or subsection (e)
of this section for qualifying large data center projects, the qualifying
owner, qualifying operator, or qualifying occupant, either singly
or jointly, must timely notify the comptroller by providing a properly
completed Qualifying Data Center or Qualifying Large Data Center Project
Job Creation Report, 01-160.
(h) Exemption certificate. Each person who is eligible
to claim an exemption authorized by this section must hold a registration
number issued by the comptroller.
(1) To claim an exemption under this section for the
purchase of tangible personal property, a qualifying owner, qualifying
operator, or qualifying occupant must provide to the seller of a taxable
item an Exemption Certificate for Qualifying Data Centers or Qualifying
Large Data Center Projects, Form 01-929. The exemption certificate
does not apply to local sales and use tax for qualifying data centers.
Refer to subsection (l) of this section for more information regarding
local sales and use tax.
(2) To claim the exemption, a qualifying owner, qualifying
operator, or qualifying occupant must properly complete all required
information on the exemption certificate, including:
(A) the data center registration number;
(B) the registration number of the qualifying owner,
qualifying operator, or qualifying occupant, as applicable;
(C) the address of the qualifying owner, qualifying
operator, or qualifying occupant, as applicable;
(D) a description of the tangible personal property
to be purchased;
(E) the signature of the purchaser; and
(F) the date of the purchase.
(3) The properly completed Exemption Certificate for
Qualifying Data Centers or Qualifying Large Data Center Projects is
the seller's documentation that it made a tax-exempt sale in good
faith. The seller is required to keep the exemption certificate and
all other financial records relating to the exempt sale, including
records to document the seller's collection of the local sales and
use tax for qualifying data centers. The seller must be able to match
invoices of tax-exempt sales to the purchaser's exemption certificate.
This may be accomplished by the seller entering the purchaser's registration
number on each invoice.
(4) A seller is not required to accept an exemption
certificate from a qualifying data center or qualifying large data
center project. If a seller chooses not to accept an exemption certificate
issued by a purchaser, the purchaser may instead request a refund
of the tax paid from the comptroller. Sellers shall provide an Assignment
of Right to Refund, Form 00-985, when the exemption is not provided
to a qualifying owner, qualifying operator, or qualifying occupant
when qualifying purchases of tangible personal property are made.
Cont'd... |