On the surface, there may be many reasons to look at business parks in large urban areas as potential places to relocate or open a new location. But if you think that those are the only places where your business can succeed, then think again!
Despite its small population, Wyoming offers many perks for businesses who are relocating or opening new branches - particularly if you’re looking for a tech park. In addition to its cool weather, productive workforce, educated populace, and high quality of life, Wyoming also has one of the most business-friendly tax climates in the entire United States.
In fact, the Tax Foundation has honored us with its “Most Business Friendly Tax Climate” designation for five years in a row. Here’s why:
Programs Beneficial to Tech Parks
Technology is a staple of our society and has made millions of jobs and lives easier and more fulfilling. In Wyoming, we want to help technology businesses grow, thrive, and continue to innovate. There are several statewide programs that are designed specifically for new businesses and tech parks, including the Data Center Sales Tax Exemption, and the Managed Data Center Cost Reduction Grant Program.
The Data Center Sales Tax Exemption is exactly what it sounds like: data centers are exempt from the burden of sales tax on goods and services. To qualify for this exemption, your data center must have a minimum $5 million investment in capital infrastructure, and an additional $2 million in data center equipment and software purchases.
As an additional perk, after a $50 million investment in capital infrastructure, your HVAC and UPS system purchases are also sales tax exempt. In helping your business reduce its tax burden, the state of Wyoming hopes to encourage continued growth and expansion, job creation, and economic boosts to its communities.
Taxes aside, Wyoming also has the Managed Data Center Cost Reduction Grant Program to help alleviate the financial burdens of the businesses in its tech parks. It’s expensive to be in business, and this program helps mitigate some of the costs associated with data centers in particular: power and broadband.
Simply stated, the program reimburses the accrued utility expenses for power or broadband at data centers - up to a maximum grant award of $2.25 million! (Note: the grant amount is based on how much capital investment and payroll the business will realize over five years.) Like many of the state’s other business-friendly programs, there are several things a business needs to do to qualify.
First, the business must match at least 125% of the grant amount in payroll and capital expenditure, and 50% of that match must be in payroll creation. Additionally, the wages paid out to employees must be greater than 150% of the county’s median wage. This helps ensure that businesses are investing their money in places that will help both themselves and their communities experience long-term growth.
2. Low Overall Tax Burden
Not only is Wyoming one of the most friendly states in the Union in which to own a business, but it also has one of the lowest tax burdens period. Here are some of the tax benefits of living, working, and opening or relocating a business here:
No corporate income tax -that’s right: ZERO.
No personal state income tax
No inventory tax
No franchise tax
No occupation tax
No value-added tax
By and large, our state senators and representatives are hardworking people who have spent time in the business world and have a thorough understanding of how it works. Because of that, we generally enjoy a positive regulatory environment that’s geared toward economic growth and development.
Successful businesses are important to a healthy state and an excellent quality of life for its residents. When studying places to start, relocate, or expand a business into, don’t forget to take Wyoming’s tech parks and business-friendly tax policies into account.