EOED is not accepting applications for qualified-data-center certification until further notice, preventing new applicants from qualifying for the sales-and-use-tax exemption during the pause.

To qualify for the tax exemption, a facility must be owned or leased by its operator or an entity under common ownership, be newly constructed or substantially refurbished, comprise at least 100,000 square feet on a single parcel or contiguous parcels, incur at least $50 million in eligible costs within 10 years, and create or maintain at least 100 Massachusetts permanent full-time jobs within five years. These are conditions for the tax benefit, not a ban on building or operating a facility that does not qualify.

A facility seeking the exemption must house specified data-processing infrastructure and have backup power, sophisticated fire-suppression and prevention systems, and enhanced security.

An owner or operator seeking the exemption must apply to EOED for certification and provide facility, investment, employment, and expenditure information, including estimated peak electricity demand and annual consumption and information about commitments or contracts supporting additional New England power generation.

EOED may take up to 60 business days after receiving a complete application to decide whether to approve or deny it; if it does not act within that period, the application is deemed approved. The first building’s qualification period must begin no more than five years after the completed application, and EOED may require separate applications and certifications for each building in a multi-building project.

Certified centers must file reports during the qualification period on jobs, investments, exempt expenditures, and other required information. They must also report before the end of their tenth qualification year on whether they met the investment requirements.

Owners and operators must retain records substantiating exemption eligibility, and EOED may require accountant-certified cost accounting of exempt expenditures.

EOED may revoke certification for material noncompliance, failure to meet material obligations, or materially inconsistent reporting. Revocation can disallow tax benefits and make exempt purchases taxable, with applicable penalties and interest.

After a sale or transfer before the qualification period ends, a new owner or operator may continue receiving the exemption only if EOED approves assignment of the certification; EOED may impose additional conditions.

Certified qualified data centers may claim a sales and use tax exemption for eligible equipment, software, operating electricity, and construction, renovation, or refurbishment costs incurred after November 20, 2024. Eligibility includes requirements such as at least 100,000 square feet, $50 million in qualifying costs within 10 years, and 100 jobs; the regulation specifies 100 permanent full-time employees within five years of commercial operations. Certification may take effect on the application date or a prospective date up to five years later.

The tax exemption can last for 20 years. Each later building at the same site can have its own 20-year period starting when it begins commercial operations, supporting phased development; EOED may require separate applications and certifications for buildings.

If a certified data center is sold or transferred before its qualification period ends, the tax benefits may continue for the remaining period for the new owner or operator, subject to EOED approval and any conditions it imposes.

Certification applications have a decision deadline, though the sources differ: the statute says 60 days, while the regulation says 60 business days. If the deadline passes without approval or denial, the application is deemed approved. A denial must provide written reasons and an opportunity to cure deficiencies; the regulation specifies 30 calendar days.

The Permit Regulatory Office must work with state agencies to expedite permits, licenses, approvals, and other legal requirements for new and expanding businesses, and provide technical assistance to municipalities seeking to streamline local permitting.

Projects in designated Priority Development Sites may receive priority consideration for state grants, business-development resources, brownfields assistance, and regional planning technical assistance. The site must meet statutory criteria, including capacity for at least 50,000 square feet of development; priority financial assistance also requires the municipality to meet applicable multifamily-zoning requirements.

A $25 million capital-grant program may support private businesses constructing or expanding commercial, industrial, or manufacturing facilities, including projects involving decarbonization, climate resilience, or significant job creation.

The $400 million MassWorks infrastructure program may provide grants or other assistance for eligible projects in municipalities that comply, or have interim compliance, with the multifamily-zoning requirement.

A $3 million program may fund site assembly, assessment, predevelopment permitting, and marketing to prepare sites for commercial or industrial development. Awards are limited to projects in municipalities that comply, or have interim compliance, with the multifamily-zoning requirement.

Certain development approvals in effect at any time from January 1, 2023, through January 1, 2025, are extended by two years, subject to listed exclusions and conditions.

Zoning rules in effect when a building permit is issued continue to govern construction or operations if work or use starts within 12 months and construction proceeds reasonably. Special permits and site-plan approvals have three years to start, and phased redevelopment need not proceed continuously between phases.

At Devens, the measure removes square-foot caps on commercial or industrial development, while leaving other applicable development-permit and housing-bylaw requirements in place.

A data center must be constructed or substantially refurbished in Massachusetts and contain at least 100,000 square feet in one or more buildings on a single parcel or contiguous parcels.

A qualifying data center must incur at least $50 million in qualified construction, refurbishment, renovation, or improvement costs within 10 years after certification; substantial refurbishment must itself involve at least 100,000 square feet and $50 million in eligible costs.

A qualifying data center must maintain at least 100 Massachusetts jobs, with the jobs requirement generally applying within five years after certification.

A qualifying data center must use specified infrastructure and safety and security measures, including uninterruptible power supplies or generator backup power, sophisticated fire-suppression and prevention systems, and enhanced access controls or comparable security.

The owner or operator must submit a detailed application and obtain certification from the secretary of economic development or the Executive Office of Economic Development before claiming the sales and use tax exemption.

Certification is discretionary and may be denied for deficiencies; the secretary may take up to 60 days to approve or deny a completed application, although the application is deemed approved if no decision is issued within that period.

The certification must specify the exemption's effective and ending dates and, for facilities with multiple buildings, the expected commercial-operation dates and qualification periods for later buildings. The effective date may be prospective but cannot be more than five years after the application date.

A certified data center must submit an annual report covering jobs, investments, exempt expenditures, and other information required to establish continued eligibility.

The secretary and commissioner must review the certification after 10 years, and the facility must submit a report before the end of its tenth qualification year addressing whether it satisfied its investment commitments.

Certification may be revoked for material noncompliance, including failure to meet the investment or minimum-job requirements, causing the related tax exemptions and benefits to end or be disallowed beginning with the tax year of noncompliance or revocation.

The sales and use tax exemption is limited to specified categories, including eligible data-center equipment, software, electricity used to operate the facility, and construction, renovation, or refurbishment costs.

EOED is currently not accepting qualified data center certification applications until further notice.

Certified qualified data centers may claim a sales and use tax exemption for eligible equipment used to build, improve, or operate the facility, including computing, networking, storage, cooling, HVAC, power and backup-power systems, security, monitoring, water-conservation, modular, and related operating equipment. Eligible data center equipment

The exemption covers computer software purchased, leased, used, or loaded at a qualified data center, including maintenance, licensing, and customization. Computer software

Electricity used or consumed to operate a qualified data center is exempt from sales and use tax. Electricity for operation

Construction, renovation, refurbishment, and improvement costs for a qualified data center are exempt from sales and use tax, including land development, materials, labor, services, buildings, utilities, site and utility infrastructure, engineering, heavy and transportation equipment, cooling, power, security, and water-conservation systems. Construction costs

The tax exemption lasts for a 20-year qualification period, beginning on the application or another prospective date specified in the application that is no more than five years later. The exemption applies to purchases made on or after November 20, 2024, and requires EOED certification.

Eligibility for the data-center tax exemption generally requires a Massachusetts facility that is constructed or substantially refurbished for specified information-technology uses, has at least 100,000 square feet, incurs at least $50 million in qualified costs within 10 years, and creates or maintains at least 100 Massachusetts jobs within five years, along with applicable operational, safety, security, and other requirements.

For a qualified data center with multiple buildings, later buildings may receive their own 20-year exemption periods beginning when they start commercial operations, supporting phased expansion.

If a qualified data center is sold before its qualification period ends, the tax exemption continues for the subsequent owner for the remaining portion of the 20-year period, provided the applicable requirements continue to be met. Exemption for subsequent owner

EOED must approve or deny a completed certification application within 60 days, provide written reasons and an opportunity to cure deficiencies if denying it, and treat the application as approved if it does not act within that period. Certification may be effective on the application date or on a specified prospective date up to five years later.

Development approvals in effect or existing during January 1, 2023 through January 1, 2025 receive a two-year extension, subject to stated conditions such as available sewer capacity. The extension excludes specified federal, fisheries, energy, transportation-authority, and enforcement-related approvals. Two-year extension

Certain development projects are protected from later zoning changes: building-permit projects generally have 12 months to begin construction and proceed continuously and reasonably, while projects requiring a special permit or site-plan approval generally have three years to begin. For phased redevelopment of previously disturbed land, substantial investment in site preparation or infrastructure construction can count as commencement. Commencement through substantial investment