Michigan

Enterprise data center sales tax exemption

Incentive or explicitly supportive policy

In effect This instrument is recorded as currently in effect as of the dataset date.

Scope

MCL 205.54ee, as amended by 2024 PA 207, exempts from Michigan sales tax sales of data center equipment to a qualified entity for an enterprise data center that holds a Michigan Strategic Fund certificate, through 31 December 2050, or 31 December 2065 for a facility on a brownfield or former power-plant site, subject to the section's conditions, including clean-energy procurement and water conditions. The Fund may not issue new certificates under subsection (6)(a) after 31 December 2029. The section's older qualified data center exemption continues on its own terms.

Geographic scope
Michigan
Jurisdiction
State
Authority type
Legislature
Issuing authority
Michigan Legislature

Dates

Adopted
No adoption day is recorded
Effective
17 April 2025
Scheduled expiration
See completion condition
Ended
Not recorded as ended
Completion condition
31 December 2029 stops new enterprise certificates only. The exemption periods end on 31 December 2050, or 31 December 2065 for brownfield and former power-plant sites; those future dates differ by site and are not stored as one expiration.
Source document
The source page states no document date
Last checked
5 October 2026

Summary

Michigan's General Sales Tax Act section 4ee, MCL 205.54ee, as amended by 2024 PA 207, exempts qualifying enterprise data center equipment from sales tax when the data center holds a certificate from the Michigan Strategic Fund. Certificate holders must meet the section's conditions, including clean-energy procurement and water conditions. The Fund may not issue new enterprise certificates after 31 December 2029, and the exemption periods end in 2050 or, for brownfield and former power-plant sites, 2065. The companion use tax exemption in MCL 205.94cc is not part of this record.

What this does not establish

  • The effective date stored is the date the 2024 PA 207 amendment took effect, from the section history. The section was first added in 2015.
  • House Bill 5396 of 2025, which would repeal this section, was referred to the House Committee on Economic Competitiveness on 17 December 2025 with no later recorded action as of 23 September 2026; it is a separate proposed record. Other pending 2025-2026 bills would amend the section (Senate Bill 643 of 2025; House Bills 5787 and 5790 of 2026). None is enacted.
  • No list of certified enterprise data centers was checked.

Unresolved questions

None recorded.

Relationships

Supersession means a later instrument replaces the earlier legal effect. Repeal links identify the repeal instrument and the measure it ends. A later implementation or related letter is not treated as a replacement unless the record says so.

Sources

Primary source

https://legislature.mi.gov/Laws/MCL?objectName=mcl-205-54ee

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