House Finance Committee advances bill creating 'grid-ready' certification and ties tax break to community benefits

The House Finance Committee on Tuesday voted to report House Bill 26 50 (printer's number 3626) to the full House after tabling two proposed amendments, advancing a package that would establish a governor's "responsible infrastructure development grid certification" and tie a sales-tax exemption for data centers to that certification.

Senior Executive Director Mark Forman, who read the bill summary for the committee, said the measure would "create the governor's responsible infrastructure development grid certification and provide a sales tax exemption for data centers that are ... grid status or certified." The bill would require applicants to submit a plan for incremental clean energy capacity, a community outreach and benefit plan that the summary says must include at least $250,000,000 in new investment, a training and hiring plan, and limits on water and energy consumption and local environmental impacts. The program is written to sunset on 12/31/2032 and certification applications are to be issued by 10/01/2027, with annual renewals thereafter.

Representative Webster, the bill's prime sponsor, framed the proposal as an effort to rebalance development incentives. "Data centers get all the perks. They get the free stuff. And our local municipalities carry all the risk," Webster said, arguing the bill would "provide an enforceable mechanism for community benefits and local jobs" and shorten long tax breaks from 25 years to 10.

Committee members debated process as well as policy. Two floor-filed amendments (a03745 and a03746) were filed and the chair moved to table them in committee with the intention that members offer them on the House floor. The committee tabled amendment a03745 by roll-call vote, which the chair announced as 14 in favor and 12 opposed. The committee also tabled amendment a03746 following a roll-call vote read by the clerk; the chair declared that amendment tabled during the meeting.

Supporters of the bill said it gives municipalities stronger leverage over data-center siting and operations by tying tax benefits to enforceable environmental and community standards. The legislation requires a grid-ready report at the time a data center commences operations confirming it continues to meet certification criteria, and includes explicit exclusions from the exemption for activities such as proof-of-work crypto mining.

Opponents and some committee members said the committee's decision to table the amendments limited an opportunity for full committee debate. Representative Debanzo said members were denied a chance to vet amendments at the committee level. "This isn't democracy. This is like dictatorship here," Debanzo said during the meeting.

The committee reported the bill to the full House by roll-call vote, which the chair announced as 15 in favor and 11 opposed. The measure will next be considered by the full House, where amendments tabled in committee are expected to be offered.