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, establishing criteria for what constitutes a qualified data center, including investment thresholds of at least $200 million in designated enterprise zones and $400 million in non-enterprise zones, as well as labor requirements. The bill also clarifies the roles of "Owner" and "Operator" and specifies the types of costs eligible for incentives.

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 criteria and submitting detailed information about their operations. The application process is outlined, including the information required for submission and the timeline for review and certification by the director of the Rhode Island Commerce Corporation. The certification will provide details such as the effective date and duration of the tax exemption, which is valid for thirty years.

The legislation specifies compliance reporting requirements, including a report due on the sixth anniversary of the certification, and outlines penalties for noncompliance with investment, labor, and renewable energy investment requirements. The bill also includes provisions for the issuance of annual certificates of compliance and mandates the corporation to promulgate rules and regulations for implementation within one year of the effective date.

Furthermore, the bill amends Section 44-18-30 to exempt qualified data center equipment from sales and use taxes, and it modifies the definition of "Covered project" in Section 39-26.9-2 to include qualified data centers. Overall, the bill aims to enhance economic development in Rhode Island by incentivizing the establishment of qualified data centers and streamlining tax exemptions for specific sectors.

Statutes affected:
7695: 42-64-3, 44-18-30, 39-26.9-2