The bill proposes a sales tax exemption for the construction or remodeling of qualified data centers in Kansas, along with the purchase of data center equipment and certain labor costs. To qualify, firms must invest a minimum of $250,000,000 and create at least 20 new jobs within two years of starting operations. The bill also amends existing sales tax law to adjust the duration of the exemption based on investment levels, reducing the exemption period from 15 to 10 years for investments of at least $250,000,000, from 30 to 20 years for investments of at least $500,000,000, and from 60 to 40 years for investments of at least $1,000,000,000. Additionally, it establishes a review process by the Secretary of Commerce to ensure compliance with the exemption terms.

Moreover, the bill expands sales tax exemptions for various nonprofit organizations and specific projects, allowing them to purchase tangible personal property and services without incurring sales tax, provided they obtain exemption certificates. It outlines the responsibilities of contractors working with these organizations, including maintaining records for five years and penalties for misuse of the exemption certificates. The bill also introduces new exemptions for sales made to pregnancy resource centers and residential maternity facilities, as well as for qualified data centers constructed by certified firms, with specific criteria defined for these organizations. Overall, the legislation aims to support economic development and community service organizations while ensuring compliance with tax regulations.

Statutes affected:
As introduced: 79-3606
As Amended by House Committee: 79-3606