Some states offer corporations opportunities to recover facility investments in data center technology, including data expansion, cooling, rewiring, generators and updates to hardware and software.
Many states have enacted legislation for the investment of capital for data and network centers. For example, in 2013 the Minnesota Department of Revenue added refund incentives for corporations that build data or network operation centers.
Opportunity: Taxes for qualifying transactions that are paid at the time of the transaction may be refundable depending upon the type of project undertaken to complete the investment. To qualify, a project must meet certain size and investment thresholds.
Implementation: ThreeFive will perform a review of the data center project to navigate the acceptance of a designated data center sales tax exemption. The process starts with an application submitted to the Department of Employment and Economic Development (DEED). Upon approval by DEED, we’ll perform a review of the project’s transactions by our team of former MN DOR experts will perform a review of the project’s transactions to prepare a claim for refund. “We’ll submit the claim for refund schedule, including invoice information, with other required project information to the Minnesota Department of Revenue.
Result: Upon successful completion, clients in Minnesota are granted a 20-year sales tax exemption for their eligible computer hardware, cooling/energy related equipment, energy use, and software. ThreeFive partners with our clients to deliver similar value in states offering tax savings opportunities for data and network center investments. Our business model is structured so you receive your tax benefits before we’re paid a contingency fee.
Nestled in the heart of the Twin Cities on Lake Calhoun, ThreeFive has fostered a work environment to attract key talent that is second to none in addressing corporate tax benefit opportunities for its clients.