Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 215 - Exemptions Primarily Benefiting Manufacturers and Other Persons Engaged in Processing › Rule 701-215.13 - Data Center Business Sales and Use Tax Refunds

Current through Register Vol. 47, No. 3, July 24, 2024
Data center businesses in Iowa meeting certain criteria may
				  make an annual application to the department for a refund of 50 percent of the
				  sales and use tax paid on the sales price of certain computers, equipment,
				  fuel, and electricity used in the operation of the data center business.
(1)
Definitions.
For the
				purpose of this rule, "data center" and "data center business" mean the same as
				defined in Iowa Code section
				423.3(95)
"e."
"Refund year"
means the year beginning with
				  the date of initial site preparation of the data center facility.
"Rehabilitation"
means a process of
				  substantial repair, remodeling, or alteration, which may include but is not
				  limited to upgrading mechanical systems, plumbing, roofing, wiring, windows,
				  and heating and cooling systems, and performing significant interior or
				  exterior structural modification. Although they may be included as part of an
				  overall rehabilitation project, singular actions such as the installation of a
				  new information system or cosmetic changes to the interior or exterior
				  appearance of a building do not, in and of themselves, constitute a
				  rehabilitated building.
(2)
Basis and criteria for refunds.
The amount, type, and length
				of refunds available to data center businesses depend upon the dollar amount of
				investment made, the type of construction undertaken, and the size in square
				feet of the facility.
a.
Investment of
				$136 million to $200 million.
Data center businesses which make
				investments in an Iowa facility of $136 million to $200 million in the first
				six years of operations and which facility contains at least 5,000 square feet
				are eligible for a refund of 50 percent of the sales and use tax paid on
				qualifying computers and equipment, backup fuel, and electricity for the first
				seven years of operation.
b.
Investment of $10 million to $136 million-new construction.
Data center businesses which make investments of $10 million to $136 million in
				the first six years of operations in the new construction of an Iowa facility
				that is at least 5,000 square feet are eligible for a refund of 50 percent of
				the sales and use tax paid on qualifying computers and equipment, backup fuel,
				and electricity for the first ten years of operation.
c.
Investment of $5 million to $136
				million-rehabilitation.
Data center businesses which make investments
				of $5 million to $136 million in the first six years of operations in the
				rehabilitation of an Iowa facility that is at least 5,000 square feet are
				eligible for a refund of 50 percent of the sales and use tax paid on qualifying
				computers and equipment, backup fuel, and electricity for the first ten years
				of operation.
d.
Investment of $1 million to $10 million-new construction.
Data center
				businesses which make investments of $1 million to $10 million in the first
				three years of operations in the new construction of an Iowa facility of any
				size are eligible for a refund of 50 percent of the sales and use tax paid on
				fuel and electricity for the first five years of operation.
e.
Investment of $1 million to $5
				million-rehabilitation.
Data center businesses which make investments
				of $1 million to $5 million in the first three years of operations in the
				rehabilitation of an Iowa facility of any size are eligible for a refund of 50
				percent of the sales and use tax paid on fuel and electricity for the first
				five years of operation.