Computer Data Center Equipment Program
The Computer Data Center Equipment Program authorized under Act 84 of 2016 and amended under Act 13 of 2019 and Act 25 of 2021 is designed to attract new investment from businesses that own or operate within a
computer data center.
Under the original legislation, the program was designed to provide a tax refund for sales and use tax paid on qualified computer data center equipment utilized within a facility certified by the Department of Revenue. Owners, operators, and qualified tenants of computer data centers that obtained certification for eligibility in the Program prior to July 1, 2021 are eligible to apply for a tax refund for sales and use tax paid on qualified computer data center equipment purchased after July 1, 2021 and prior to December 31, 2021 that is used within the facility. This program is referred to as the Computer Data Center Equipment Incentive program.
Per enactment of Act 25 of 2021, the Department of Revenue is prohibited from accepting new applications for certification under the Computer Data Center Equipment Incentive Program. The passage of Act 25 of 2021 established the Computer Data Center Sales and Use Tax Exemption Program. Beginning January 1, 2022, computer data center equipment is exempt from Pennsylvania sales and use tax when it is sold to, used, or consumed in a certified data center by an owner, operator or qualified tenant holding a Computer Data Center Sales and Use Tax Certificate of Exemption issued by the department.
Data centers that have obtained certification between calendar year 2017 and July 1, 2021, will be eligible to apply for an Exemption beginning October 1, 2021. Exemptions issued to approved applicants will be effective January 1, 2022 through December 31, 2022.
Data centers that apply for certification after July 1, 2021 under the parameters in Section II of the guidelines, will be eligible to apply for an Exemption after certification is granted by the department. Exemptions will be effective from January 1, 2022 until December 31, 2022 if the certification is granted in 2021. If the certification occurs in 2022, the effective date of the Exemption will be from the date of certification until December 31, 2022.
Specific information is available in the program guidelines and FAQs. If you have questions, please contact the department’s Office of Economic Development at 717-772-3896 or firstname.lastname@example.org.