Kansas 2023-2024 Regular Session

Kansas House Bill HB2450

Introduced

3/8/23

Refer

3/8/23

Report Pass

2/14/24

Failed

4/30/24

Caption

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.

Latest HB2450 Activity

Companion Bills

No companion bills found.

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