The proposed bill aims to stimulate economic development in Kansas by introducing a sales tax exemption for the construction or remodeling of qualified data centers. 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 "eligible data center costs," and establishes an application process that includes requirements for water conservation and compliance audits. Additionally, it prohibits public utilities from offering discounted electric rates to data centers, ensuring that these facilities do not receive additional financial incentives that could detract from the bill's economic development goals.

The legislation also amends existing tax exemption laws, clarifying definitions and expanding exemptions for various nonprofit organizations and projects. It requires contractors to obtain exemption certificates for tax-exempt purchases and outlines penalties for misuse of these certificates. The bill includes provisions for sales tax refunds for transactions prior to its effective date and mandates that contractors provide sworn statements confirming compliance with tax exemption requirements. Overall, the bill seeks to streamline the tax exemption process while ensuring accountability and compliance, thereby enhancing the state's ability to attract investments and support charitable organizations.

Statutes affected:
Enrolled: 66-101j, 79-3606