MI SB0616

Exempts sales of data center equipment to qualified data center owners, operators, and colocated businesses from Michigan sales tax from January 1, 2016 through December 31, 2035.

Exemption continues after January 1, 2022 only if qualified data centers and related contractors collectively establish at least 400 data center industry jobs in the state since January 1, 2016, with reporting required by April 1, 2022.

Exemption continues after January 1, 2026 only if qualified data centers and related contractors collectively establish at least 1,000 data center industry jobs in the state since January 1, 2016, with reporting required by April 1, 2026.

Defines "data center equipment" to include computers, servers, routers, switches, storage batteries, generators, power supply units, environmental controls, software, and construction materials used in data center operations.

Requires the legislature to annually appropriate sufficient state general fund revenue to the state school aid fund to fully compensate for revenue losses resulting from this tax exemption.