The bill amends the sales and use tax exemption for data centers in Arkansas, specifically updating the definitions and requirements for what constitutes a qualified data center and a qualified large data center. Key changes include the expansion of the definition of "data center equipment" to include not only computer equipment and software but also related equipment and services, as well as provisions for immediate use or future storage. The bill introduces the concept of a "qualified large data center," which is defined as a facility housing networked computer servers in two or more nonadjacent locations, and sets new investment thresholds and compensation requirements for both qualified data centers and qualified large data centers.

Additionally, the bill modifies the application process for tax exemptions, transferring the responsibility from the commission to the Department of Finance and Administration. It establishes new criteria for eligibility, including a requirement for a positive cost-benefit analysis from the Arkansas Economic Development Commission. The bill also stipulates that if a qualified data center or large data center fails to meet the required aggregate annualized compensation, their financial incentive certificate may be revoked. The effective date of these changes is set for the first day of the calendar quarter following the act's approval.