Data centers are expensive, so it’s always good news when their operators can reduce expenses without harming quality.
New and existing data centers in Illinois that have achieved LEED, Energy Star, or other sustainability certification can apply for an incentive that exempts them from paying sales taxes on the equipment in their facilities for 20 years. The state and local sales tax exemption includes HVAC equipment, servers and storage racks, meaning it can be worth tens of thousands of dollars.
As a bonus, facilities located in an underserved area are eligible for a construction worker wages tax credit under the same incentive.
To help summarize the incentive and requirements, ESD has created the guide below. We encourage our clients to review it with their legal team (there’s an incentive for legal review fees as well!).
Please reach out to Tim Zelazny or Jennifer Reininger with any questions.