An Act To Encourage Computer Data Center Development
Maine Legislature, Session 125, LD 1259
Committee: Taxation
Sponsors: SHERMAN, AYOTTE, EDGECOMB, LONG
Amends: 36 MRSA §2020

Legislative Document 
No. 1259 
S.P. 380 
In Senate, March 22, 2011 
An Act To Encourage Computer Data Center Development 
Reference to the Committee on Taxation suggested and ordered printed. 
JOSEPH G. CARLETON, JR. 
Secretary of the Senate 
Presented by Senator SHERMAN of Aroostook. 
Cosponsored by Representatives: AYOTTE of Caswell, EDGECOMB of Caribou, LONG of 
Sherman. 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1.  36 MRSA §2020 is enacted to read: 
§2020.  Refund of sales tax for computer data center purchases 
1.  Definitions.  As used in this section, unless the context otherwise indicates, the 
following words have the following meanings. 
A.  "Computer data center" or "center" means a facility comprised of one or more 
buildings occupied by one or more businesses with a combined square footage of at 
least 20,000 square feet, constructed or refurbished to be used primarily to house 
working servers, and having: 
(1)  An uninterruptible power supply or generator backup power; 
(2)  Sophisticated fire suppression and prevention systems; and 
(3)  Enhanced building security, such as restricted access to the facility, 
permanent security guards, video camera surveillance, electronic passcode 
systems, keycards, biometric scans or similar security features. 
For a computer data center comprised of multiple buildings, each separate building is 
considered a computer data center if the building has all of the characteristics listed in 
subparagraphs (1) to (3). 
B.  "Electronic data storage and data management services" includes, but is not 
limited to: 
(1)  Providing data storage and backup services; 
(2)  Providing computer power and hosting enterprise software applications; 
(3)  Hosting websites; and 
(4)  Providing online services such as e-mail, website browsing and searching, 
media applications and other services, regardless of whether a charge is made for 
those services. 
C.  "Eligible computer data center" means a computer data center located in the State 
that has at least 20,000 square feet dedicated to housing working servers, when the 
space is not dedicated to housing working servers before October 1, 2011 and for 
which a building permit is issued before October 1, 2014. 
D.  "Eligible power infrastructure" means all fixtures and equipment necessary for the 
transformation, distribution or management of electricity that is required to operate 
eligible server equipment within an eligible computer data center, including electrical 
substations, generators, wiring and cogeneration equipment. 
E.  "Eligible server equipment" means server equipment installed in an eligible 
computer data center on or after October 1, 2011 and server equipment that replaces 
existing server equipment, if the sale or use of the server equipment being replaced 
qualifies for a refund or exemption under this section and is installed and put into 
regular use before October 1, 2014. 
F.  "Qualifying business" means a business entity that exists for the primary purpose 
of engaging in commercial activity for profit and that is the owner or lessee of an 
eligible computer data center that adds at least 20 qualifying jobs at a center within 6 
years after the date the qualifying business first becomes eligible for an exemption 
under this section. 
G.  "Qualifying job" means a full-time job with an average weekly wage that exceeds 
the average weekly wage for the county in which the job is located. 
H.  "Server" means blade or rack-mount server computers used in a computer data 
center exclusively to provide electronic data storage and data management services 
for internal use by the owner or lessee of the computer data center, for the clients of 
the owner or lessee of the computer data center or for both.  "Server" does not include 
personal computers. 
I.  "Server equipment" means the server chassis and all computer hardware contained 
within the server chassis.  "Server equipment" also includes computer software 
necessary to operate the server.  "Server equipment" does not include the racks upon 
which the server chassis is installed and computer peripherals such as keyboards, 
monitors, printers and other devices. 
2.   Refund authorized.  A qualifying business is eligible for a refund of sales tax on 
the purchase of the following services or the purchase or lease of the following items 
upon presenting to the State Tax Assessor evidence that the transaction is eligible for 
refund under this section: 
A.  Eligible server equipment; 
B.  Eligible power infrastructure; and 
C.  Electronic data storage and data management services. 
An application for a refund must be filed with the assessor within 36 months after the 
date of purchase or lease. 
3.  Sales tax exemption; certificate.  Sales tax need not be paid on the purchase of 
services or lease or purchase of items eligible for a refund under this section if the 
purchaser or lessee has obtained a certificate from the assessor stating that the purchaser 
or lessee is eligible to purchase services or lease or purchase eligible items without 
paying sales tax.  The seller or lessor is required to obtain a copy of the certificate 
together with an affidavit as prescribed by the assessor, to be maintained in the seller's or 
lessor's records, attesting to the qualification of the purchase or lease for exemption 
pursuant to this section.  In order to qualify for this exemption, the items or services must 
be used directly in or by an eligible computer data center. 
4.  Recapture.  A qualifying business that fails to meet the requirement of adding 20 
new full-time employees within 6 years after the qualifying business first becomes 
eligible under this section must be assessed the amount of sales tax forgone or refunded 
by the State plus interest. 
SUMMARY 
This bill provides a sales tax refund or exemption for sales of eligible server 
equipment, eligible power infrastructure and electronic data storage and data management 
services to an eligible computer data center that begins operation between October 1, 
2011 and October 1, 2014.  A qualifying business must add at least 20 jobs with above-
average wages within 6 years after the business first becomes eligible or the amount of 
exempt or refunded taxes plus interest will be recaptured by the State.