La. R.S. 47:305.73 — Exemptions; data center facility equipment

A. As used in this Section, the following terms shall have the meanings ascribed to
them in this Subsection unless the context clearly indicates otherwise:
(1) "Approved data center facility" means a data center facility that is located in
Louisiana and certified by Louisiana Economic Development.
(2) "Data center" and "data center facility" mean a facility, campus of facilities, or
interconnected facilities located within Louisiana which has a primary business purpose of
processing, storage, retrieval, or communication of data and was developed to power, cool,
secure, or connect its own equipment or the equipment of its customers.
(3)(a) "Data center equipment" means equipment or software purchased or leased for
the processing, storage, retrieval, or communication of data including all of the following:
(i) Servers, routers, connections, and other enabling machinery, equipment, software,
and hardware, regardless of whether the property is affixed to or incorporated into
immovable property used in the processing, storage, retrieval, or communication of data.
(ii) Equipment used in the operation of computer equipment or software, including
component parts, refreshments, replacements, and upgrades, regardless of whether the
property is affixed to or incorporated into immovable property.
(iii) Equipment necessary for the transformation, generation, distribution, or
management of electricity required to operate computer server equipment, including
substations, generators, uninterruptible energy equipment, fuel piping and storage, cabling,
duct banks, switches, switchboards, batteries, testing equipment, and backup generators.
(iv) Equipment necessary to cool and maintain a controlled environment for the
operation of computer servers and the data center, including chillers, refrigerant piping, fuel
piping and storage, adiabatic and free cooling systems, cooling towers, water softeners, air
handling units, indoor direct exchange units, fans, ducting, and filters.
(v) Water conservation systems, including facilities or equipment designed to collect,
conserve, and reuse water.
(vi) Computer server equipment, including chassis, networking equipment, switches,
racks, fiber optic and copper cabling, trays, and conduit.
(vii) Monitoring equipment and security systems.
(viii) Conduits, ducting, and fiber-optic and copper cabling, including any such items
that are located outside of the data center but within Louisiana, directly related to connecting
one or more distributed approved data center locations.
(ix) Equipment, materials, and services necessary for the development, acquisition,
construction, expansion, and renovation of a qualified data center, including but not limited
to construction and building materials, site characterization and assessment services,
engineering services, and design services used directly and exclusively in a qualified data
center.
(x) Modular data centers and pre-assembled components used in the manufacturing
of such centers.
(xi) Pre-assembled components of any item listed in this Subparagraph.
(b) The term "data center equipment" shall not mean office equipment or supplies,
equipment or supplies used primarily in sales activities or transportation activities, tangible
personal property not listed in Subparagraph (a) of this Paragraph that is incorporated into
immovable property, and tangible personal property that is rented or leased for a term of one
year or less.
(4) "Department" means the Department of Revenue.
(5),(6) Repealed by Acts 2024, 3rd Ex. Sess., No. 11, §4, eff. Dec. 4, 2024.
B.(1)(a) Subject to the limitation provided in Subparagraph (b) of this Paragraph,
Louisiana state and local sales and use taxes shall not apply to eligible data center equipment
purchased by and expenditures of an approved data center facility for the development,
acquisition, construction, lease, repair, refurbishment, expansion, and renovation of a
qualified data center, including but not limited to costs of construction and building
materials, site characterization and assessment, engineering, design, and labor and
installation services used directly and exclusively in a qualified data center.
(b) Only purchases made on or after July 1, 2024, shall be eligible for the exemption
authorized in this Subsection.
(2) To be certified as an approved data center by Louisiana Economic Development,
the data center facility operator shall provide a sworn attestation that the project will create
a minimum of fifty new direct, permanent jobs in Louisiana and intends to expend at least
two hundred million dollars in new capital investment in Louisiana on or after July 1, 2024,
and before July 1, 2029. An approved data center shall be issued a Direct Payment Number
in accordance with the applicable provisions of R.S. 47:303.1.
(3)(a) A facility that has been certified as an approved data center facility shall enter
into an agreement with Louisiana Economic Development that comports with the
requirements of this Paragraph.
(b) The agreement shall provide a term of exemption eligibility, an initial term of
twenty years, a list of all eligible recipients of the exemption, language that authorizes the
state to terminate the agreement and language that authorizes the state and local taxing
authority to assess and collect any sales and use taxes due if the data center facility fails to
fulfill, or Louisiana Economic Development determines that the facility will be unable to
fulfill, its statutory and contractual obligations.
(c) Upon the expiration of the initial term of the agreement, Louisiana Economic
Development may renew the agreement for an additional ten years.
(d) Louisiana Economic Development may include in the agreement any additional
conditions that it deems appropriate.
(4) The department may utilize any collection remedy authorized by Chapter 18 of
this Subtitle based on termination of the agreement with Louisiana Economic Development
or a determination that a purchase did not qualify for the exemption.
C. Any overpayment resulting from an approved data center's payment of sales and
use tax on exempt purchases or expenditures shall not be entitled to interest on refunds
provided for in R.S. 47:337.80 or 1624.
D. The department and the Louisiana Uniform Local Sales Tax Board, respectively,
may promulgate rules and regulations in accordance with the Administrative Procedure Act
as necessary for the implementation of this Section.
E,F. Repealed by Acts 2024, 3rd Ex. Sess., No. 11, §4, eff. Dec. 4, 2024.
Acts 2020 1
st
Ex. Sess., No. 35, §1, eff. July 1, 2020; Acts 2024, No. 730, §1, eff.
July 1, 2024; Acts 2024, 3rd Ex. Sess., No. 11, §§2, 4, eff. Dec. 4, 2024.