Locally sponsored data-center bill signed into law

Gov. Jay Nixon yesterday signed a bill sponsored by two southwest Missouri legislators that provides tax incentives for high-tech data centers in the state.

With final approval of Senate Bill 149, data centers establishing or expanding in Missouri are eligible for state and local sales and use tax exemptions for machinery, equipment and computers, according to a news release. The bill, sponsored by Bolivar Sen. Mike Parson and Nixa Rep. Kevin Austin, goes into effect Aug. 28.

Missouri Chamber of Commerce & Industry officials say the move positions the state to compete globally for data center investment and high-tech jobs.

“This is a game-changer for our state,” chamber President and CEO Dan Mehan said in a news release.

According to the bill, projects are eligible with investments of $25 million or more in new data centers and at least 10 new jobs paying 150 percent of the county’s average wage. Data center expansions qualify for the tax breaks with a $5 million facility investment and five new jobs paying 150 percent above the county wages. The incentives remain in place for 15 years on new projects and 10 years on expansions, according to the legislation.

“For years, Missouri has tried to land data center projects using our state’s many relevant advantages – low-cost power supply, protection from natural disasters, fiber internet and talented (information technology) workers. But the reality is, if you aren’t offering an incentive package, you are largely invisible to the site selectors who guide tech investment. Now, Missouri is on the map,” Mehan added.

The bill’s sponsors say Missouri is catching up to the digital age.

“Our neighboring states, including, Kansas, Illinois, Nebraska, Oklahoma and Iowa, already offer these types of incentives to lure data storage companies,” Parson said in a news release. “It’s time Missouri acts before we get left behind.”[[In-content Ad]]