The proposed bill aims to stimulate economic development in Kansas by offering a sales tax exemption for the construction or remodeling of qualified data centers, contingent upon firms making a minimum investment of $250 million and creating at least 20 new jobs within two years. The bill establishes definitions for key terms such as "qualified data center" and "eligible data center costs," and outlines an application process that includes requirements for water conservation and compliance audits. Additionally, it prohibits public utilities from providing 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.

Moreover, the bill amends existing laws to clarify the classification and exemption of machinery and equipment used in production operations, specifying what qualifies as integral to production and establishing exemptions for certain types of machinery. It also introduces new sales tax exemptions for various nonprofit organizations and community projects, detailing the responsibilities of contractors in obtaining exemption certificates and maintaining compliance. The bill includes provisions for penalties related to the misuse of exemption certificates and outlines a process for sales tax refunds for eligible transactions prior to the bill's enactment. Overall, the legislation seeks to enhance support for nonprofit organizations and facilitate community development while ensuring accountability in tax-exempt purchases.

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