DATA CENTER - SALES TAX REFUNDS

Opportunity: In 2013, the Minnesota Department of Revenue – sales and use tax division, added refund incentives for corporations that build data or network operation centers. Not unlike the Minnesota capital equipment sales tax code, qualifying transactions are paid and then refundable depending upon the type of project undertook to complete the investment. Corporations need at least 25,000 square feet and must invest $30 million on a new facility in the first 4 years to qualify for the Data Center Sales Tax incentive – or corporations that refurbish a data or network operation center and invest $50 million in the first 2 years may qualify as well.

 Implementation: ThreeFive will perform the review from beginning to end to navigate the designated data center sales tax exemptions. The process starts with an application submitted to the Department of Employment and Economic Development (DEED). The application process is something our Clients can do themselves or with the help of ThreeFive. Upon approval by DEED, ThreeFive will perform a 100% review of all project transactions by its team of former MN DOR experts to prepare a sales and use tax claim for refund. The claim for refund schedule, including invoice information, will be submitted with other required project information to the Minnesota Department of Revenue.

 Results: Upon completion, Clients will be grated a 20 year sales tax exemption on computer hardware, cooling and energy related equipment, energy use, and software. Our business model is structured for you to get paid first on all refunds due before we invoice you based on that amount.


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