Michigan

Enterprise data center use tax exemption

Incentive or explicitly supportive policy

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

Scope

MCL 205.94cc, as amended by 2024 PA 181, exempts from Michigan use tax the storage, use, or consumption of data center equipment sold to a qualified entity or its affiliates for the operations of an enterprise data center subject to a Michigan Strategic Fund certificate, or sold to a contractor to the extent it is affixed to or made a structural part of such a data center, through 31 December 2050, or 31 December 2065 for a facility on property in a brownfield plan or a former power-plant site. The Fund may not issue new certificates under subsection (6)(a) after 31 December 2029.

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

Dates

Adopted
No adoption day is recorded
Effective
2 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 Use Tax Act section 4cc, MCL 205.94cc, as amended by 2024 PA 181, exempts data center equipment from use tax when it is used in an enterprise data center that holds a certificate from the Michigan Strategic Fund. The enterprise data center criteria include procuring clean energy equal to 90% of the facility's forecasted annual electricity use and using municipal water from a system with available capacity. The Fund may not issue new certificates after 31 December 2029, and the exemption periods end in 2050 or, for brownfield and former power-plant sites, 2065. The companion sales tax exemption in MCL 205.54ee is a separate record.

What this does not establish

  • The effective date stored is the date the 2024 PA 181 amendment took effect, from the section history. The section was first added by 2015 PA 252.
  • The section's separate qualified data center exemption in subsection (1), which is subject to the job thresholds in subsections (2) and (3), is not described in this record.
  • House Bill 5397 of 2025 would repeal this section; it is pending, not enacted, and is a separate record.
  • The companion sales tax exemption, MCL 205.54ee (record mi-mcl-205-54ee-enterprise-data-center-sales-tax-exemption), is a separate instrument.
  • 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-205-94cc

    Back to the policy tracker ยท Michigan policy module