This bill establishes 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 also amends existing law to reduce the duration of the sales tax exemption 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. The Secretary of Commerce will certify qualified firms and ensure compliance, with the ability to revoke or modify exemptions if conditions are not met.

Additionally, the bill introduces various sales tax exemptions for nonprofit organizations and contractors involved in specific projects, including those related to health services, community development, and educational materials. It specifies that contractors must obtain exemption certificates and retain invoices for five years, subject to audit. The bill also outlines penalties for misuse of materials purchased under these exemptions, classifying such actions as misdemeanors. Furthermore, it provides for sales tax refunds for certain transactions that occurred prior to the bill's effective date, ensuring compliance and accountability in the use of tax-exempt materials. Overall, the bill aims to enhance support for data centers and various nonprofit initiatives while ensuring clarity and compliance in tax exemption applications.

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