Washington Removes Tax Exemption for Data Center Equipment Replacement

The Washington Governor signed a law removing tax exemptions for replacement equipment in data centers. The law specifically prohibits the issuance of new exemption certificates after July 1 for data centers that qualify through refurbishment and clarifies that server equipment installed in movable or prefabricated units does not qualify for exemption. The law takes effect on July 1. [S.B. 6231, enacted 04/01/26]

This story was produced by Bloomberg Tax Automation, and edited by Bloomberg Tax staff.