Iowa DOR Issues Decision Regarding Sales Tax Exemption for Data Center Businesses

The Iowa Department of Revenue (DOR) June 26 issued a decision regarding the sales tax exemption for data center businesses. The DOR ruled that T5 Data Centers LLC, a data center business planning to construct a data center campus in Iowa, would be eligible for the sales tax exemption if it met the requirements outlined in Iowa Code section 423.3(95). The DOR also clarified that while a data center property owner and a data center tenant cannot aggregate their investments to meet the requirements of the sales tax exemption, they can both qualify for the exemption if they each independently ...