Seeded on Fri Aug 7, 2009 2:06 PM EDT (washingtonpolicyblog.typepad.com)
In what should be a larger news story than it is so far, Microsoft on Tuesday announced via its blog that they will suspend construction of their Windows Azure data center and re-locate to another state (right now the prevailing rumor is San Antonio, Texas).
This all stems from the construction of the data centers being ineligible for a state tax credit. Passed in 1985, the manufacturing sales and use tax deferral program was designed to address unemployment and poverty in distressed areas of the state. See the RCW here. The purpose of the program was to promote economic stimulation and employment opportunities by deferring taxes for specified investment projects in rural areas.