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Kansas committee approves sales-tax exemption for large data centers after rejecting energy-report amendment
Summary
The Senate Commerce Committee voted to pass Senate Bill 51, which offers sales-tax exemptions for large qualified data centers, after rejecting an amendment that would have required public reporting of projected energy use.
The Senate Committee on Commerce voted to report Senate Bill 51 favorably after debate over energy use and fiscal impact.
Senate Bill 51 would provide sales-tax exemptions for construction or remodeling of a "qualified data center" in Kansas and for eligible data-center purchases and certain labor. The measure sets minimum investment thresholds and tiered exemption durations tied to investment size.
The bill drew particular attention to electricity use and long-term grid capacity. Senator Titus proposed an amendment that would have required applicants to provide and publicly share estimated energy consumption and information about on-site generation; the amendment failed. Supporters of the amendment said the requirement would help local governments weigh long-term power impacts when courting large data centers;…
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