The Michigan House and Senate approved a pair of bills late Tuesday night that clear the way for a massive data center to open near Grand Rapids.
The measures would allow new and existing data centers in the state to skip paying the sales tax and use tax for the next 20 years.
Nevada-based Switch wanted to secure the tax breaks before it committed to Michigan.
The legislation was changed to require data centers in the state to have a net gain of 400 jobs by 2022 and another 600 jobs by 2026 to continue receiving the incentives.
If neither benchmark is reached then the incentives goes away.
Switch is pledging to create 1,000 jobs.
The legislation now goes to the governor for his signature.