The bill proposes a sales tax exemption for the construction or remodeling of qualified data centers in Kansas, as well as for 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 defines key terms such as "qualified data center" and "new jobs," and establishes an application process that includes an agreement with the Secretary of Commerce. Additionally, it amends the duration of the sales tax exemption, reducing the exemption period from 15 to 10 years for investments of at least $250,000,000, and similarly adjusting the periods for larger investments. The Secretary of Commerce will certify qualified firms and ensure compliance, with provisions for audits and potential revocation of the exemption for non-compliance.

Furthermore, the bill introduces various amendments to existing tax laws, including specific provisions for nonprofit organizations and community service projects. It allows contractors working on projects for certain nonprofits to purchase materials exempt from sales tax, provided they obtain exemption certificates and maintain records for five years. The bill also specifies penalties for misuse of these exemptions and outlines the process for sales tax refunds for transactions that would have been exempt had they occurred after the bill's effective date. Notably, it includes a provision that all claims for sales tax refunds must be verified and submitted to the director of taxation, with a sunset clause for these provisions set to expire on December 31, 2030.

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