This bill introduces new provisions related to the purchasing of goods and services for data center operations in South Dakota. It defines key terms such as "computer software," "data center," "enterprise information technology equipment," and "qualified business," establishing a framework for what constitutes a qualified data center. The bill specifies that gross receipts from the sale of enterprise information technology equipment or computer software intended for use in a qualified data center are exempt from taxation. Additionally, it outlines the requirements for a qualified business to be eligible for this tax exemption, including the need for a written agreement with electric utilities and notification to local water providers regarding water consumption.

Furthermore, the bill mandates that qualified businesses must submit documentary evidence to the Department of Revenue to verify their eligibility for the exemption. This evidence is deemed confidential, and the Department will determine eligibility based on the submitted documentation. To maintain their tax-exempt status, qualified businesses are required to file an affidavit annually, confirming that their data center continues to meet the exemption criteria. Overall, the bill aims to promote the establishment and operation of qualified data centers in South Dakota by providing significant tax incentives.