The proposed legislation, General Assembly Raised Bill No. 245, aims to eliminate certain tax incentives for data centers in Connecticut. Specifically, it repeals subsection (b) of section 32-286 of the general statutes and introduces new language that prohibits the acceptance of applications for tax exemptions related to data centers after July 1, 2026. The bill allows individuals or entities that own, operate, or are colocation tenants in qualified data centers to apply for tax exemptions under specific conditions, but it stipulates that no applications will be accepted post the effective date.

The key change in the bill is the insertion of the phrase "provided no such application may be accepted by the commissioner on or after July 1, 2026," which effectively ends the opportunity for data centers to seek tax exemptions after this date. This legislative action reflects a shift in policy regarding the financial incentives provided to data centers, potentially impacting their operations and investment in the state. The bill is set to take effect on July 1, 2026.