Sections 47 and 214 of chapter 238 of the Acts of 2024 (the “Act”) created a new sales and use tax exemption for the purchase of certain property for use in Qualified Data Centers, as set forth in M.G.L. c. 64H § 6(zz). The Act requires the Executive Office of Economic Development (EOED), in consultation with the Department of Revenue, to promulgate regulations, accept applications and certify applicants for the purpose of exempting owners and operators of Qualified Data Centers from the sales and use tax on purchases of:
(A) eligible data center equipment for use in a qualified data center; (B) computer software for use in a qualified data center; (C) electricity for use or consumption in the operation of a qualified data center; or (D) construction costs incurred for the construction, renovation or refurbishment of a qualified data center.
EOED currently is working in consultation with the Department of Revenue to develop the required regulations and application for certification. EOED will not accept applications for certification until a standardized application form is available. Any interested parties that wish to be notified of updates regarding the qualified data center tax exemption regulations and application form should provide the requested information using this form.
Inquiries may also be directed to datacentertaxexemption@mass.gov.