Signed by Governor Laura Kelly

Vote Smart's Synopsis:

Vote to adopt a conference report and pass a bill that exempts qualified data centers in Kansas from sales taxes and sets eligibility requirements.

Highlights:

• Establishes a sales tax exemption for qualified firms that make an investment of at least $250 million in an eligible data center for costs of projects, labor services, and data center equipment (Sec. 2).

• Requires an eligible firm to do the following to be eligible for the sales tax exemption (Sec. 2):

• Submit an application;

• Commit to an investment of at least $250 million for projects to be completed by the fifth year of operation of a qualified data center;

• Commit to begin construction of the project within 10 years of the date of the agreement;

• Commit to purchase electricity for 10 years from the public utility for the territory where the qualified data center is located; and

• Commit to undertake practices that will conserve, reuse, and replace water.

• Requires a qualified firm to agree to do the following as a condition of receiving the sales tax exemption (Sec. 2):

• Cooperate with audits by the Secretary of Revenue; and

• Provide the Secretary of Commerce with required information.

• Specifies that the sales tax exemption is valid for 20 years after the commencement of operations of a qualified data center (Sec. 3).

• Requires the Secretary of Commerce to seek and receive approval from the Fusion Center Oversight Board prior to awarding any public financial assistance to a qualified data center project (Sec. 4).

• Specifies that this Act takes effect after its publication in the statute book (Sec. 8).

Full Bill Text

Vote Smart's Synopsis:

Vote to adopt a conference report and pass a bill that exempts qualified data centers in Kansas from sales taxes and sets eligibility requirements.

Highlights:

• Establishes a sales tax exemption for qualified firms that make an investment of at least $250 million in an eligible data center for costs of projects, labor services, and data center equipment (Sec. 2).

• Requires an eligible firm to do the following to be eligible for the sales tax exemption (Sec. 2):

• Submit an application;

• Commit to an investment of at least $250 million for projects to be completed by the fifth year of operation of a qualified data center;

• Commit to begin construction of the project within 10 years of the date of the agreement;

• Commit to purchase electricity for 10 years from the public utility for the territory where the qualified data center is located; and

• Commit to undertake practices that will conserve, reuse, and replace water.

• Requires a qualified firm to agree to do the following as a condition of receiving the sales tax exemption (Sec. 2):

• Cooperate with audits by the Secretary of Revenue; and

• Provide the Secretary of Commerce with required information.

• Specifies that the sales tax exemption is valid for 20 years after the commencement of operations of a qualified data center (Sec. 3).

• Requires the Secretary of Commerce to seek and receive approval from the Fusion Center Oversight Board prior to awarding any public financial assistance to a qualified data center project (Sec. 4).

• Specifies that this Act takes effect after its publication in the statute book (Sec. 8).

Full Bill Text