Data Center Tax Bill Advances in Washington State

(Ping! Zine Web Hosting Magazine) – A bill that would extend the time in which data centers currently under construction could apply for tax incentives in Washington state has passed the state senate by a margin of 41 to 1. With the proposed legislation, data centers could apply for sales tax incentives until April 1, 2021. Under current laws, the centers only have until July 1st of this year to do so.

The initial tax breaks concerning the incentives for data centers resulted from a previous bill that allowed the companies to receive them upon new computer installation. It was passed after Yahoo failed to receive a sales tax break on its own data center in 2007.

Proponents of the legislation contend that the extension is needed due to the growth in data centers in the state of Washington since the initial tax incentive bill was passed nearly a year ago. Recently, companies such as Yahoo and Microsoft have invested in data centers in the state.

Concerning the issue, Executive Secretary of the Washington State Building and Construction Trades Council Dave Johnson told the Columbia Basin Herald, “From last year’s bill, we’ve seen over 200,000 work hours put into data center projects and our understanding is, there’s other major data center facilities that would like to move into the area if the tax exemption were extended.”

Despite clearing the state senate, the bill will have to be approved by the state house before it can be signed into law by the state’s governor.