Exemption
Data center equipment and infrastructure
Retail Sales & Use Tax exemption · RCW 82.08.986; 82.12.986 · enacted 2010
Before ESSB 6231
The data center sales/use tax exemption under RCW 82.08.986 / 82.12.986 covered eligible server equipment and power/cooling infrastructure at qualifying data centers, including replacement and refurbished server equipment (2024 DOR Tax Exemption Study baseline).
Source: 2024 DOR Tax Exemption Study · RCW 82.08.986; 82.12.986
After
Effective July 1, 2026, ESSB 6231 narrowed the exemption by removing it for replacement and refurbished server equipment (the "replacement server equipment" eligibility is eliminated), while preserving the exemption for new equipment at newly built/eligible data centers. Confirm eligibility and dates against ESSB 6231 (2026) and current DOR guidance.
Source: ESSB 6231 (2026)
Details
- Citation
- RCW 82.08.986; 82.12.986
- Study reference
- E1694-1
- Tax type
- Retail Sales & Use Tax
- Preference type
- Exemption
- Category
- Business
- Year enacted
- 2010
- End date
- 2048-07-01 00:00:00
Fiscal impact (2024 study estimates)
- Revenue if repealed — local ($M)
- FY 2024: 0 · FY 2025: 21.35 · FY 2026: 24.79 · FY 2027: 25.79
- Revenue if repealed — state ($M)
- FY 2024: 0 · FY 2025: 75.38 · FY 2026: 87.04 · FY 2027: 89.04
- Taxpayer savings — local ($M)
- FY 2024: 22.59 · FY 2025: 23.29 · FY 2026: 24.79 · FY 2027: 25.79
- Taxpayer savings — state ($M)
- FY 2024: 77.54 · FY 2025: 82.24 · FY 2026: 87.04 · FY 2027: 89.04
CTI = confidential taxpayer information · D = unable to disclose
From the 2024 DOR Tax Exemption Study
82.08.986; 82.12.986 - Data center equipment and infrastructure Description There is a sales and use taxes exemption for qualified purchases of eligible server equipment and eligible power infrastructure for data centers located in a rural county. The exemption also includes charges for labor and services associated with installation of the equipment and power infrastructure. To qualify, a facility must meet employment and facility size requirements described in statute. In addition, for exemption certificates issued on or after June 9, 2022, qualifying businesses operating newly constructed data centers must attain certification for sustainable design or green building standards. This exemption is limited to eight data centers for those that began construction between July 1, 2015, and July 1, 2019, and a total of 12 data centers through June 9, 2022. There is no limitation thereafter, and any number of data centers may be granted certificates if they qualify, unless they are qualifying via refurbishment. In addition, each year, the department may issue up to six certificates for data centers that qualify through refurbishment. No new exemption certificates may be issued on or aft
Does this apply to you?
This is reference data from the 2024 study — not advice, and 2025–26 legislation may have changed it. Three ways to go deeper: