This bill establishes a retail sales and use tax exemption for the construction and equipping of new data centers in specific counties in Washington State, specifically those located east of the Cascades, bordering another state, and with a population of at least 500,000. It outlines the criteria for qualifying businesses and tenants to obtain exemption certificates for eligible server equipment and power infrastructure, as well as associated labor and services. The exemptions will be valid until July 1, 2048, with new certificates not being issued after July 1, 2036. Additionally, the bill mandates that qualifying businesses demonstrate a net increase in family wage employment and adhere to sustainable design certifications within three years of operation, while also encouraging practices to mitigate environmental impacts.

Furthermore, the bill introduces definitions related to "emerging large energy use facilities," specifically targeting data centers with a maximum aggregate contract demand of 20 megawatts or more. It amends existing tax exemption laws to include these new provisions and emphasizes community workforce agreements and prevailing wage requirements for construction work at data centers. A performance statement is included to evaluate the effectiveness of the tax preferences, with the intention of enhancing industry competitiveness and job retention. The legislation also mandates a review by the joint legislative audit and review committee to assess the impact of these exemptions on capital investment and job creation in the state.

Statutes affected:
Original bill: 82.08.988