The bill establishes a sales tax exemption for the construction or remodeling of qualified data centers in Kansas, specifically targeting firms that invest a minimum of $250 million and create at least 20 new jobs within two years of starting operations. The exemption applies to eligible costs, including equipment and certain labor expenses, while also prohibiting public utilities from offering discounted electric rates to these data centers. To qualify for public financial assistance or benefits, data centers must undergo a review by the Kansas intelligence fusion center. The bill includes provisions for compliance monitoring by the secretary of commerce, allowing for the revocation of the exemption if terms are violated.

Additionally, the bill amends existing laws related to sales tax exemptions, clarifying definitions for terms such as "qualified data center" and "qualified firm." It specifies that discounts for electric service do not apply to qualified data centers, ensuring they do not receive the same economic incentives as other industries. The bill also outlines requirements for contractors to obtain exemption certificates for tax-exempt projects and establishes penalties for misuse of these certificates. Overall, the legislation aims to enhance transparency and accountability in tax exemptions while supporting specific sectors, including data centers and nonprofit organizations.

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