South Carolina – Exemption for Data Centers

SALT Report 1576 – The South Carolina State Legislature passed a bill that provides a sales tax exemption for qualified data centers.  Effective June 7, 2012 a sales and use tax exemption is provided for original or replacement computers, computer equipment, computer hardware, software purchases, and electricity used at a qualified data center.
Qualified Data Centers
A qualified “data center” is a new or existing facility located in South Carolina that provides hosting or data processing services, and meets the following conditions:
  • A single taxpayer investment of at least $50 million in real or personal property over five years, or
  • One or more taxpayers invest a minimum of $75 million in real or personal property over five years
  • Is certified by the Department of Commerce, and
  • Creates at least 25 full-time jobs that are maintained for the three consecutive years following certification
The taxpayer must notify the Department of Revenue and the Department of Commerce, in writing, of their intention to claim the exemption. All qualified data centers must be certified before January 1, 2032.
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