The bill amends Section 42-64-3 of the General Laws concerning the Rhode Island Commerce Corporation by introducing new definitions and clarifications related to data centers. Key terms such as "Colocation tenant," "Eligible qualified data center costs," and "Qualified data center" are defined to establish clear criteria for data center operations, including investment thresholds and labor requirements. The bill also modifies existing definitions to align with current practices, enhancing clarity around the roles of "Operator" and "Owner" and expanding the definition of "Facility."

Additionally, the bill establishes a "Qualified Data Center Location Incentive," allowing data center owners or operators to apply for a sales and use tax exemption, contingent upon meeting specific investment and labor cost criteria. The investment thresholds are set at a minimum of two hundred million dollars ($200,000,000) for data centers located in designated enterprise zones and four hundred million dollars ($400,000,000) for those in non-enterprise zones. The application process requires the submission of various details, including anticipated labor costs and a signed affirmation of compliance with certification requirements.

The bill outlines compliance requirements, including the submission of investment and labor expenditure reports, and specifies penalties for noncompliance, which include financial penalties based on the difference between required and actual investments or expenditures. The certification for the sales and use tax exemption is valid for thirty years, with ongoing compliance checks required every year after the sixth anniversary of the certification.

Furthermore, the bill introduces tax exemptions for qualified data center equipment, which includes various types of computer and networking equipment necessary for the operation of data centers. Overall, the legislation seeks to incentivize the establishment of qualified data centers and expand tax exemptions to stimulate economic activity in Rhode Island.

Statutes affected:
2346: 42-64-3, 44-18-30, 39-26.9-2