Utah Facebook facility eligible for additional tax breaks

June 6, 2018

SALT LAKE CITY (AP) — Facebook could receive an additional $5.8 million in sales tax breaks on a new data center planned for Utah.

Sales tax incentives for the nearly 1-million-square-foot facility would be on top of $150 million in property tax breaks approved by Utah County in May.

The sales tax breaks were approved by the state Legislature in 2016 but didn’t feature prominently in discussions before the data center’s announcement last week. Lawmakers were trying to lure data centers to Utah after Facebook passed on the state to build a data center in New Mexico.

The Legislature’s estimate at the time found that a facility meeting similar requirements would see a $1.8 million reduction in local sales taxes and $4 million in state sales taxes. The tax breaks would apply to equipment expected to last at least one year.

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