The proposed bill aims to provide tax incentives for data centers in Arkansas by creating a sales and use tax exemption for electricity sold to these facilities. It defines a "data center" as a facility that meets specific criteria, including a minimum capital investment of $100 million and the creation of at least 50 new full-time jobs with wages at least 150% of the average hourly wage in the county. Notably, the bill excludes facilities used for cryptocurrency operations from this definition. The gross receipts from the sale of electricity to qualifying data centers would be exempt from the gross receipts tax and compensating use tax, while electricity used for other purposes would still be subject to these taxes.

Additionally, the bill includes provisions for the separate metering of electricity used by data centers to ensure compliance with the exemption. The Secretary of the Department of Finance and Administration is granted the authority to establish metering requirements and may require sellers of electricity to obtain a certificate from consumers to confirm eligibility for the exemption. The bill also declares an emergency, emphasizing the urgency of attracting the data center industry to Arkansas to support economic development efforts. The act will take effect immediately upon approval by the Governor or under specific conditions if not vetoed.