The 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 million and create at least 20 new jobs within two years. The bill defines key terms such as "qualified data center" and "eligible data center costs," and outlines the application process for the exemption, which includes submitting an application to the Secretary of Commerce and entering into an agreement detailing the exemption's terms. The duration of the sales tax exemption varies based on the investment level, ranging from 15 years for a $250 million investment to 60 years for a $1 billion investment.

Additionally, the bill amends existing tax regulations concerning contractors working on government-funded projects, requiring them to retain invoices for five years and subjecting them to audits. It clarifies the process for obtaining project exemption certificates and outlines penalties for misuse of materials purchased under these certificates. The bill also expands sales tax exemptions for various nonprofit organizations, including those involved in health care and community services, while specifying that certain purchases related to abortion services are excluded from these exemptions. Overall, the bill aims to enhance support for nonprofit organizations and qualified data centers while ensuring compliance with tax regulations.

Statutes affected:
As introduced: 79-3606