To receive the sales and use tax exemption, an applicant must apply to the Department of Commerce, demonstrate intent and capacity to meet the requirements, and provide requested information; buyers must give vendors evidence of eligibility. Apply for an exemption certificate

Within three years after applying for the exemption, a data center must invest at least $2 million in qualified personal property in a Tier I area, or $5 million elsewhere in Maryland, and create at least five qualified positions. Each position must be full-time, indefinite, newly created, pay at least 150% of the state minimum wage, and be filled for at least 12 months. Within 3 years

The exemption certificate must be renewed annually and generally cannot be renewed for more than 10 consecutive years; it may be renewed for up to 20 consecutive years if the applicant invests at least $250 million in qualified data center personal property. Must be renewed each year

Certificate holders must keep records of taxes not paid, qualified positions created, and investment in qualified property for at least three years after the certificate ends, and allow the Department of Commerce to inspect those records. For at least 3 years

The Department of Commerce may revoke an eligibility certificate if an application representation was false or the applicant failed to fulfill its commitments. The applicant must have an opportunity to appeal before the Comptroller is notified, and the Comptroller may assess the applicant to recover sales and use tax not paid under the exemption. May revoke a certificate

A sales and use tax exemption applies to qualified personal property bought or leased for use at a qualified data center, including computing, cooling, and power equipment. Within three years after applying, the applicant must invest at least $2 million and create five qualified positions at a center in a Tier I area, or invest at least $5 million and create five qualified positions elsewhere in Maryland. Qualified positions must meet statutory requirements, including pay of at least 150% of the State minimum wage.

The sales-tax exemption certificate must be renewed annually and may generally be renewed for up to 10 consecutive years, or up to 20 consecutive years if the applicant invests at least $250 million in qualified data center personal property.

A county or municipality may, by local law, reduce or eliminate the portion of qualifying data center personal property subject to property tax, or grant a property tax credit for that property. For a reduction or elimination to apply in the following taxable year, the law must be submitted to the Department by May 1.

Projects with at least $250 million in investment and at least 10 jobs may qualify for a 10-year personal property tax abatement of up to 100% in years one through five and up to 90% in years six through ten. They may also qualify for two five-year extensions, each with up to 80% abatement, based on performance metrics including investment, employment, and positive economic impact to Howard County.

Projects with at least $50 million in investment and at least five jobs may qualify for a 10-year personal property tax abatement of up to 90% in years one through five and up to 80% in years six through ten. They may also qualify for one five-year extension with up to 80% abatement, based on performance metrics including investment, employment, and positive economic impact to Howard County.