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Panel approves HB 1654 creating sales-and-use tax exemption for qualifying data centers
Summary
HB 1654 would exempt sales and use taxes for a data center locating in the state if it meets conditions: at least $500 million in project cost, at least $1 million in annual payroll, exemptions for equipment, certain services and electricity, and demonstration to ADC of no revenue impact. The committee approved the bill by voice vote.
The Senate Revenue & Tax committee approved House Bill 1654 after a sponsor presentation and no public testimony.
Senator Jonathan Dismang introduced the bill, saying HB 1654 "just creates an exemption for the sales and use tax for a data center if 1 were to locate in the state." He outlined three parameters the project must meet: a minimum $500 million project cost, at least $1 million in annual payroll, and review by ADC to show "no revenue impact." He said the exemption would cover equipment, certain services and electricity sold.
The chair asked for committee questions and public comment; none were offered. A motion that HB 1654 "do pass" was moved (transcript indicates the mover as Senator Dismang) and seconded by Senator Crowell. The committee approved the bill by voice vote.
Why it matters: HB 1654 would create a targeted sales-and-use tax exemption intended to attract large-scale data centers by exempting capital equipment, specified services and electricity, subject to meeting size and payroll thresholds and an ADC review demonstrating no negative revenue impact.
What’s next: The bill advances from committee; the transcript records voice-vote approval and does not include a roll-call tally. Details such as the duration of the exemption, specific services covered, and any reporting or clawback mechanisms were not specified in the committee discussion.
