The bill amends Chapter 42-64 of the General Laws concerning the Rhode Island Commerce Corporation by introducing new definitions and a section titled "Qualified Data Center Location Incentive." It defines key terms such as "colocation tenant," "qualified data center," "qualified data center equipment," and "qualified investment," which are essential for understanding the regulatory framework surrounding data centers in the state.

The bill allows individuals or entities planning to own, operate, or be a colocation tenant in a qualified data center to apply for tax exemptions from property taxes and sales taxes, contingent upon a minimum investment of $200 million in an enterprise zone or $400 million elsewhere. The agreements for these exemptions can last between 30 to 50 years and include provisions for annual fees, which shall not exceed $25,000, and compliance assessments.

Additionally, the bill outlines the responsibilities of the Secretary of Commerce in managing these agreements, including serving as a liaison between applicants and state agencies, providing assistance throughout the application process, and ensuring timely responses. It mandates that no construction, rehabilitation, renovation, or repair of a qualified data center can commence without a negotiated host municipality fee agreement.

The legislation establishes a compliance mechanism, requiring data centers to address any noncompliance within 180 days of notification from the municipality, or face termination of their fee agreement, which would result in liability for previously exempted property taxes. The bill aims to incentivize investment in data centers, thereby fostering economic growth in Rhode Island while ensuring accountability through tax collection processes and compliance measures.

Statutes affected:
6097: 42-64-3