The bill seeks to eliminate tax exemptions for the replacement of equipment in data centers as part of a broader initiative to modernize Washington's tax code and enhance state revenue. Key amendments include the stipulation that no new exemption certificates will be issued for refurbished data centers after July 1, 2026, and that existing exemptions will expire on the same date. The legislation also limits the annual issuance of exemption certificates and requires qualifying businesses to maintain a minimum number of family wage employment positions. Additionally, it encourages environmentally sustainable practices and mandates annual tax performance reports to ensure compliance with the new regulations.

Furthermore, the bill introduces new definitions and requirements for tax exemptions related to eligible computer data centers, specifying that they must be located in rural counties and meet certain size and operational criteria. It clarifies that movable or fixed stand-alone units do not qualify as eligible data centers and establishes penalties for businesses that fail to comply with sustainable design standards. The bill also emphasizes the importance of job creation and economic impact, with provisions for the transfer of exemption certificates and public disclosure of tax performance report information. Overall, the legislation aims to promote responsible growth in the data center sector while ensuring accountability in employment and environmental practices.

Statutes affected:
Original bill: 82.08.986, 82.08.9861