Data centers tax exemption repeal; contingent reduction in special education aid appropriation repeal

This bill repeals a tax exemption that previously allowed large data centers to purchase construction materials and technology equipment without paying sales tax. It directly affects data center operators and the state government by ending a financial benefit that was intended to encourage investment in these facilities. The legislation defines a "qualified large-scale data center" as a facility costing at least $250 million to build or upgrade within a six-year period, and it removes the specific exemption for their enterprise IT equipment from the list of tax-free items. Additionally, the bill reverses a prior decision that reduced special education funding, restoring the full appropriation amount to the state budget. These changes will take effect on July 1, 2026, meaning businesses purchasing supplies for these centers will need to pay sales tax and may be eligible for refunds if they had previously claimed the exemption.