The objective of this program is to encourage computer data center (CDC) operation and expansion in Arizona. The Program accomplishes this objective by providing Transaction Privilege Tax (TPT) and Use Tax exemptions at the state, county and local levels, on qualifying purchases of CDC Equipment. The CDC incentive is administered by the Arizona Commerce Authority (ACA) in conjunction with the Arizona Department of Revenue (ADOR).
An owner, operator or qualified co-location tenant of a CDC may receive the exemptions provided by the incentive for up to ten full calendar years following the year certification of the CDC is issued. However, if the CDC qualifies as a Sustainable Redevelopment Project, the exemptions are available for up to 20 full calendar years following the year certification of the CDC is issued.
The TPT and Use Tax exemptions provided by the incentive are available if all of the following are satisfied:
- An Applicant submits an Application for CDC Certification (Application) and receives a Letter of Certification from the ACA.
- The CDC Owner, Operator, and/or Qualified Co-location Tenant collectively satisfy the requisite Capital Investment Threshold in a timely manner and the Applicant submits to the ACA evidence of satisfaction of one of the following:
- If the CDC Facility is located in either Maricopa or Pima County, a Capital Investment of at least $50 million is made within five years of the date of the Letter of CDC Certification from the ACA; OR
- If the CDC Facility is located in any county other than Maricopa or Pima, a Capital Investment of at least $25 million is made within five years of the date of the Letter of CDC Certification from the ACA; OR
- In the case of an Existing CDC, regardless of location, a Capital Investment of at least $250 million was made during the period between September 1, 2007 and August 31, 2013.
- The approval of a CDC Application is subject to payment of all requisite processing fees.
- All relevant parties comply with the employer requirement set forth in A.R.S. § 23-214(B).
For more detailed information, please see below or direct questions to the Program Manager.
The incentive is established under A.R.S. § 41-1519
TPT exemption statutes: A.R.S. §§42‑5061,42‑5159 or 42-6004
APPLICATION FOR CERTIFICATION
The ACA is authorized to accept applications for certification of a CDC between September 1, 2013 and December 31, 2023.
An owner or operator may apply for certification of a CDC by completing the electronic “Application for CDC Certification.” To apply electronically for program incentives, click here.
Within 60 days of receipt of a complete application, the ACA will notify the owner or operator of certification or denial.
Upon receipt of certification from the ACA, an Owner, Operator and/or Qualified Co-Location Tenant may begin obtaining the TPT and Use Tax Exemptions offered by the program.
If you you would like to be notified of updates on the Computer Data Center Program, please click here to send an e-mail requesting notification. Please be sure to identify Computer Data Center as the program for which you would like notification.