Connecticut House Bill HB06514

Connecticut 2021 Regular Session

• Introduced: 2/23/21
• Engrossed: 2/24/21
• Passed: 3/1/21
• Enrolled: 3/1/21
• Passed: 3/4/21
• Chaptered: 3/10/21
• Enrolled: 3/25/21

Caption

An Act Concerning Incentives For Qualified Data Centers To Locate In The State.

Impact

The introduction of HB 6514 is expected to stimulate economic activity by encouraging significant investments in the data tech industry. The bill stipulates that a qualified data center must commit to invest a minimum of either $50 million or $200 million, depending on its location within designated enterprise zones. This financial commitment will not only promote infrastructure development but could also lead to job creation in the tech sector, ultimately enhancing the state's position in the growing digital economy.

Summary

House Bill 6514 aims to attract qualified data centers to the state by providing tax incentives and an array of benefits for investment in their development and operation. The legislation defines a 'qualified data center' as a facility that houses computer servers to centralize the storage, management, and dissemination of data. By offering exemptions from certain taxes, such as sales tax on equipment, services, and electricity, the bill seeks to create a favorable environment for data centers, which have become increasingly crucial for economic growth.

Sentiment

The sentiment surrounding HB 6514 appears to be predominantly positive among advocates who view the bill as a strategic move to harness the digital economy's potential. Supporters assert that incentivizing data centers aligns with broader economic development goals and positions the state as an attractive locale for investment. However, some skepticism exists regarding the long-term benefits versus possible challenges, such as strains on local resources and infrastructure.

Contention

While the bill has considerable support, concerns have been raised about potential overreliance on large facilities that may exert pressure on local taxation and resource management. The requirement for municipalities to negotiate a host municipality fee agreement adds an element of complexity to the legislation, as communities grapple with balancing economic benefits against regulatory measures that protect local interests. The ongoing discourse reflects a need to ensure that the incentives established by HB 6514 do not undermine local governance and autonomy.