The bill amends the existing 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 encompass not only computer equipment and software but also related equipment and services, as well as the introduction of new terms such as "qualified large data center." The bill lowers the minimum qualified investment required for a qualified data center from $500 million to $100 million and establishes a new threshold of $2 billion for qualified large data centers. Additionally, it specifies that the aggregate annualized compensation must be at least $1 million for qualified data centers and $3 million for qualified large data centers.

The bill also revises the application process for tax exemptions, transferring the responsibility from the commission to the Department of Finance and Administration. It outlines the eligibility criteria for both types of data centers, including the requirement for a positive cost-benefit analysis and the stipulation that the facilities must not primarily engage in virtual currency transactions. Furthermore, the bill mandates annual certification of compliance with investment and compensation requirements, with provisions for revocation of the financial incentive certificate if these requirements are not met. The effective date of the amendments will be the first day of the calendar quarter following the act's approval.