Removing a tax exemption for the replacement of equipment for data centers.

HB 2708 removes a tax exemption for data center equipment replacement in Washington State, directly affecting data center operators currently using this exemption. The bill eliminates the tax break for purchasing new server equipment and power infrastructure, with existing exemptions set to expire by July 2048. It also requires qualifying data centers to meet new employment thresholds - adding 35 family wage jobs or 3 per 20,000 sq ft of new server space - to maintain their exemption. New exemption certificates for refurbished data centers can no longer be issued after July 2026, and all new applications for this exemption are prohibited after that date.