Substitute for HB 2450 by Committee on Commerce, Labor and Economic Development - Providing a sales tax exemption for the construction or remodeling of a qualified data center in Kansas and the purchase of data center equipment, eligible data center costs, electricity and certain labor costs to qualified firms that commit to a minimum investment of at least $600,000,000 and meet new Kansas jobs and other requirements.
Impact
The bill alters existing state law by amending current sales tax provisions and establishing new guidelines specifically for data centers. This includes extending exemptions for expenses related to the construction, remodeling, and operation of data centers, thus enhancing the state's appeal as a hub for technological infrastructure. It empowers the secretary of commerce to certify qualifying firms and maintain oversight of compliance with the program's requirements, which include job creation and investment benchmarks.
Summary
House Bill 2450 introduces a significant sales tax exemption aimed at fostering economic development through the establishment of qualified data centers in Kansas. To benefit from these exemptions, a firm must make a minimum investment of at least $600 million and meet specified job creation requirements. This incentive is designed to attract businesses in the tech sector, particularly those focusing on data storage and processing, by optimizing the financial environment for such investments.
Contention
Debate surrounding the legislation may arise regarding the implications of granting such extensive tax exemptions, particularly concerning equity and fairness. Critics argue that it could divert funds from essential state services to benefit large corporations at the expense of smaller local businesses and taxpayers. Proponents, however, assert that the increased economic activity and job creation resulting from these data centers would ultimately benefit the state economy, suggesting a net positive impact even if immediate funds are reduced through tax exemptions.
Providing a sales tax exemption for the construction or remodeling of a qualified data center in Kansas and the purchase of data center equipment, eligible data center costs and certain labor costs to qualified firms that commit to a minimum investment of at least $250,000,000 and meet new Kansas jobs and other requirements.
Providing a sales tax exemption for the construction or remodeling of a qualified data center in Kansas and the purchase of data center equipment, eligible data center costs, electricity and certain labor costs to qualified firms that commit to a minimum investment of at least $600,000,000 and meet new Kansas jobs and other requirements.
Providing a sales tax exemption for the construction or remodeling of a qualified data center in Kansas and the purchase of data center equipment, eligible data center costs and certain labor costs to qualified firms that commit to a minimum investment of at least $250,000,000 and meet new Kansas jobs and other requirements.
To Provide Sales And Use Tax Exemptions For Data Centers; And To Provide A Sales And Use Tax Exemption For Data Center Equipment, Data Center Costs, Certain Services Provided To A Data Center, And Electricity Used By A Data Center.
Providing a sales tax exemption for the construction or remodeling of a qualified data center in Kansas and the purchase of data center equipment, eligible data center costs, electricity and certain labor costs to qualified firms that commit to a minimum investment of at least $600,000,000 and meet new Kansas jobs and other requirements.
Providing a sales tax exemption for the construction or remodeling of a qualified data center in Kansas and the purchase of data center equipment, eligible data center costs and certain labor costs to qualified firms that commit to a minimum investment of at least $250,000,000 and meet new Kansas jobs and other requirements.
Providing a sales tax exemption for the construction or remodeling of a qualified data center in Kansas and the purchase of data center equipment, eligible data center costs and certain labor costs to qualified firms that commit to a minimum investment of at least $250,000,000 and meet new Kansas jobs and other requirements.
House Substitute for SB 169 by Committee on Taxation - providing an income tax rate of 5.15% for individuals and decreasing the normal tax for corporations, increasing the income limit for the income tax subtraction modification for social security income, increasing the standard deduction by a cost-of-living adjustment, discontinuing the food sales tax credit, decreasing the privilege tax normal tax, establishing a 0% state rate for sales and use taxes for food and food ingredients on January 1, 2024, and increasing the extent of property tax exemption for residential property from the statewide school levy.
Providing a sales tax exemption for purchases of property and services by nonprofit organizations distributing food pursuant to a food distribution program on a charitable basis.