MI HB5075

Exempts sales of data center equipment from Michigan sales tax when purchased by data center owners, operators, or colocated businesses for use in data center operations.

Defines "data center" as buildings in Michigan whose primary business is owning, operating, managing, or maintaining networked computers for storing, processing, managing, or disseminating data.

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

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

Applies to colocated businesses that have contracts with data center operators for 2 or more years to use or deploy data center equipment in Michigan.