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Representative Pulse outlines SB 265 to shorten data‑center tax exemption to 20 years
Summary
Representative Pulse told the committee SB 265 (a companion to House Bill 399) would reduce the maximum tax‑exemption period for data‑center incentives from 30 years to 20 years, retain construction‑period sales‑and‑use abatements and limit ongoing abatements to operational IT equipment; the bill was carried over while amendments are drafted.
Representative Pulse told the committee that SB 265, a companion to House Bill 399, would shorten the maximum tax‑exemption period for data‑center incentives from 30 years to 20 years.
The sponsor said the bill would continue to allow sales‑and‑use and other non‑educational taxes to be abated during the construction period but that, once a data center is placed in service, non‑educational state ad valorem taxes would no longer be abated. He said the measure would preserve abatements only for sales and use tax on operational IT equipment.
“No one is trying to eliminate incentives entirely,” Representative Pulse said, explaining the intent was to reduce the length of the exemption while still supporting construction activity. He asked members whether they had questions and said staff were preparing amendments; he requested the item be carried over while that work continues.
The committee did not take a final vote on SB 265; the sponsor asked to carry the bill for further amendment and review.
