T5 Data Centers Lauds Passage Of North Carolina Tax Incentives Act
HB 117 provides new tax abatements and benefits specifically designed to make North Carolina attractive for data center growth.
Executives at T5 Data Centers indicate that passage of House Bill 117, the North Carolina Competes Act, will create new growth opportunities for the company’s T5@Kings Mountain Data Center Park. The new legislation includes components specifically designed to promote growth of data centers within the state.
HB 117, the North Carolina Competes Act, includes a number of sales tax incentives, including privilege tax breaks specifically for data centers. Any equipment to be used in a data center such as servers, equipment, cooling systems, data storage, and other components is eligible for a new sales tax incentive capping the sales tax at 1% . The same incentive also has been extended to power such as the generation, transmission, and distribution of electricity, including substations used for data center purposes. Equipment and electricity are two of the most expensive elements of data center operations, so waiving sales taxes can result in a huge savings. To qualify for the 1% privilege tax, data center owners and tenants must make a cumulative investment of $75 million over five years.