MI HB5074

Adds a new exemption from Michigan use tax for data center equipment sold to data centers or colocated businesses for use in data center operations.

Defines "data center" as buildings whose primary business is owning, operating, managing, or maintaining networked computers for centralizing storage, processing, management, or dissemination of data, including related infrastructure and telecommunications systems.

Defines "data center equipment" broadly to include computers, servers, construction materials, machinery, wiring, cabling, software, hardware, and related equipment used in or supporting data center operations.

Limits the exemption to the percentage of equipment actually used for exempt data center purposes, as determined by a reasonable formula or method approved by the department.

Requires sellers claiming exemptions to obtain purchaser identifying information and exemption reason at time of purchase, use standardized electronic format, maintain records, and obtain completed exemption forms within 120 days of sale to avoid tax liability.