Energy Sales Tax Breaks Lures Apple to Arizona

Arizona – The State of Arizona has extended a significant tax break to Apple, Inc. who recently purchased property in Mesa, Arizona. The tax break would be due to Apple using a minimum of $100 million in renewable energy to power up a new data center planned for the location. There will also be a sales tax break on electricity and gas. This has the potential to save Apple over $1million in sales and use tax.

Senate Bill 1468 which was amended this year is greatly credited for the Apple, Inc. deal. The newly amended bill extends individual and corporate income tax credits for investment in renewable energy for self-consumption to “International Operations Centers”. The amendment modifies investment and usage qualifications for the tax credit. It exempts proceeds from electricity and natural gas sold to an “International Operations Center” from transaction privilege tax (“sales tax”) and use tax. “Senate Bill 1468 certainly enhances Arizona’s ability to compete in the global economy to attract these high-wage companies,” said Chris Camacho, president and CEO of the Greater Phoenix Economic Council.

These new sales tax exemptions for tech data centers are currently attracting bigger tech companies to states like Arizona. States continue to push for additional 10 to 20 year tax breaks incentives. Incentives can include a wide range of taxes such as sales tax on equipment purchases and utility taxes.

About Davis & Davis LLC – Sales Tax Experts: Headquartered in Dallas, Texas, Davis & Davis LLC – Sales Tax Experts specializes in sales/use tax audit consulting and audit defense. Our team of consultants is comprised of former Big 4 sales tax consultants and state sales tax auditors. Each of our consultants has 15 to 20 years of experience, providing our clients with access to a highly specialized team of sales/use tax professionals. At Davis & Davis we are committed to maintaining the highest standards in our talent pool. We work hard to meet our clients’ needs by ensuring that you view our firm as an extension of your company and a member of your team.

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