Budget & Taxes (Economic Development)

HB 957 prevents the state from offering new sales tax exemptions for computer data centers, meaning future projects will not receive special breaks on taxes for purchasing or installing equipment. The bill defines specific criteria for what qualifies as a data center, including requirements for significant capital investment and job creation, but it stops the tax credit authority from granting these benefits to any new applicants. While the law allows existing agreements to remain in effect, it ensures that no future data center projects can secure tax-free status for their equipment purchases. This change directly affects technology companies and developers planning to build or expand data centers in the state after the bill takes effect.

This bill prohibits the state from granting new sales tax exemptions for computer data center equipment, affecting companies that wish to build or expand data centers in the state. Under current law, developers could apply for exemptions from sales taxes on equipment used in data centers if they met specific criteria, including making significant capital investments and paying substantial employee wages. The bill closes this pathway by preventing any new agreements from being approved after its enactment, though it does not affect existing exemptions already granted. The legislation defines what constitutes a data center and equipment, requiring that any future exemptions must demonstrate a positive economic impact on the state and local communities.