The proposed bill would amend current statutes regarding the transaction privilege tax (TPT) and use tax exemptions related to clean rooms. Under 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 a more comprehensive definition of what constitutes a clean room, including the necessary systems and fixtures that maintain controlled environments.

Furthermore, the bill would remove the limitation of clean room exemptions solely to semiconductor-related activities and apply the modified deduction and exemption to all relevant clean room activities starting from the first day of the month following the general effective date of the law. This change aims to broaden the scope of tax benefits for businesses involved in various high-tech and medical fields, potentially resulting in significant revenue reductions for the state General Fund beginning 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