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.
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