The proposed bill would amend current statutes regarding the transaction privilege tax (TPT) and use tax exemptions related to clean rooms. Under the current law, clean rooms are defined specifically for the manufacturing, processing, fabrication, or research and development of semiconductor products. The bill would expand this definition to include clean rooms used for biotechnology products, life sciences products, and medical devices. Additionally, it would introduce the term "clean room equipment" and provide detailed definitions for biotechnology products, life sciences products, and medical devices, thereby broadening the scope of the tax exemption.

Furthermore, the bill specifies that the updated TPT deduction and use tax exemption would apply to taxable periods beginning on or after the first day of the month following the general effective date of the act. This change aims to encourage a wider range of industries to benefit from the tax exemptions associated with clean room environments, potentially leading to a significant reduction in state General Fund revenue starting in FY 2026.

Statutes affected:
Introduced Version: 42-5061, 42-5159, 42-5156, 23-501, 36-1901, 28-5201, 42-5074, 42-6017, 88-525, 95-627, 99-661, 111-296, 28-5739, 28-8344, 42-5001, 42-5075, 42-5009, 28-2154, 28-2154.01, 42-5073, 3-311, 46-191, 36-551, 41-3201, 41-1514.02, 1-215, 49-426, 49-480, 41-1516, 44-1771, 42-5014, 42-5063, 45-604, 28-1171, 104-104, 41-1519, 44-1302, 42-5064, 42-5029, 42-5032.01