| (E) hardware or a distributed mainframe computer or
server;
(F) a data storage device;
(G) network connectivity equipment;
(H) a rack, cabinet, and raised floor system;
(I) a peripheral component or system;
(J) software;
(K) a mechanical, electrical, or plumbing system that
is necessary to operate any tangible personal property described in
this subsection;
(L) any other item of equipment or system necessary
to operate any tangible personal property described in this subsection,
including a fixture; or
(M) a component part of any tangible personal property
described in this subsection.
(3) The purchase price of qualifying tangible personal
property, including building materials, electricity, and other items,
jointly procured by a qualifying owner, qualifying operator, or qualifying
occupant for installation at, incorporation into, or use in one or
more qualifying data centers or qualifying large data center projects
is to be apportioned among the purchasers for purposes of subsection
(i)(2) of this section, concerning liability in the event of revocation.
(c) Exclusion from exemption. The exemption in subsection
(b) of this section does not apply to:
(1) office equipment or supplies;
(2) maintenance or janitorial supplies or equipment;
(3) equipment or supplies used primarily in sales activities
or transportation activities;
(4) tangible personal property on which the purchaser
has received or has a pending application for a refund under Tax Code, §151.429
(Tax Refunds for Enterprise Projects);
(5) tangible personal property that is rented or leased
for a term of one year or less;
(6) tangible personal property not otherwise exempted
under subsection (b) of this section that is incorporated into real
estate or into an improvement of real estate; or
(7) notwithstanding Tax Code, §151.3111 (Services
on Certain Exempted Personal Property), a taxable service that is
performed on tangible personal property exempted under this section.
(d) Eligibility for certification as a qualifying data
center. The comptroller may certify an applicant facility as a qualifying
data center if the following requirements are met:
(1) the applicants declare on the application for certification
that the facility does or will meet all of the requirements for the
definition of the term "data center" set out in subsection (a)(3)
of this section;
(2) the data center is at least 100,000 square feet
of space located in a single building or portion of a single building;
(3) the qualifying owner, qualifying operator, or qualifying
occupant, jointly or independently, have agreed to, on or after September
1, 2013:
(A) create at least 20 qualifying jobs on or before
the fifth anniversary of the date that the data center is certified
by the comptroller as a qualifying data center; and
(B) make a capital investment of at least $200 million
in that particular data center over a five-year period beginning on
the date the data center is certified by the comptroller as a qualifying
data center. 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 comptroller
certifies the data center; 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
(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).
(e) Eligibility for certification as a qualifying large
data center project. The comptroller may certify an applicant facility
as a qualifying large data center project if the following requirements
are met:
(1) the applicants declare on the application for certification
that the facility does or will meet all of the requirements for the
definition of the term "data center" set out in subsection (a)(3)
of this section;
(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.
Cont'd... |
