Kansas 2025-2026 Regular Session

Kansas Senate Bill SB98

Introduced
1/29/25  
Refer
1/30/25  
Report Pass
2/13/25  
Engrossed
2/19/25  
Refer
2/19/25  
Report Pass
3/7/25  
Enrolled
4/11/25  

Caption

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.

Impact

The bill's provisions would notably amend existing state laws regarding financial assistance and tax incentives related to data centers. It proposes that public utilities are prohibited from offering discounted economic development electric rates specifically for customers constructing new or expanded data centers. Consequently, this could centralize the regulatory framework governing the establishment and operation of data centers, making it more streamlined for investors while potentially limiting the flexibility local utilities have in fostering business relationships.

Summary

Senate Bill No. 98 pertains to the establishment of a sales tax exemption for the construction or remodeling of qualified data centers in Kansas. It requires qualifying firms to make a minimum investment of $250 million and create at least 20 new jobs. This economic development initiative is designed to attract significant investment in data centers, which are critical for digital infrastructure. By providing financial incentives such as tax exemptions, the bill aims to boost the local economy and employment rates in the region, encouraging technological advancements and modern facility construction.

Sentiment

General sentiment surrounding SB98 aligns with a pro-business outlook, as proponents see the legislation as crucial for positioning Kansas as a competitive location for data center operations, which have risen in demand due to increased digitization. However, there may be concerns from critics about the adequacy of the measures to ensure that such developments cater to the workforce needs and community interests in public infrastructure and service quality. The sentiment may vary among stakeholders, with local governments possibly worried about losing authority over certain economic incentives to facilitate local developments.

Contention

Notable points of contention involve the balance between offering significant tax incentives to attract large investments and ensuring that local needs and infrastructure services are not compromised during this expansion. Some stakeholders may question whether the substantial upfront financial commitments required in the bill could deter smaller firms or serve predominantly larger corporations. Additionally, scrutiny will likely be placed on how effectively the Kansas intelligence fusion center will be in overseeing the security and compliance aspects of approved data centers as part of the approval process for financial assistance.

Companion Bills

No companion bills found.

Similar Bills

KS HB2098

Providing a deduction from sales or compensating use tax when selling and buying different motor vehicles within 120 days, providing an exemption for certain purchases by disabled veterans of the armed forces of the United States, excluding manufacturers' coupons from the sales or selling price for sales tax purposes, providing sales tax exemptions for custom meat processing services and purchases for the construction or repair of buildings used for human habitation by the Kansas state school for the blind and the Kansas state school for the deaf, providing sales tax exemptions for certain purchases by doorstep inc., exploration place, inc., Kansas children's discovery center, inc. and the Kansas fairgrounds foundation and providing for a sales tax exemption for sales of property and services used in the provision of communications services.

KS SB267

Providing sales tax exemptions for certain services purchased on behalf of a provider in the provision of communication services and certain purchases by the Kansas fairgrounds foundation and modifying the definition of alcoholic beverages for purposes of the retailers' sales tax.

KS SB60

Substitute for SB 60 by Committee on Assessment and Taxation - Providing sales tax exemptions for custom meat processing services, purchases for the construction or repair of buildings used for human habitation by the Kansas state school for the blind and the Kansas state school for the deaf, certain purchases and sales by the Johnson county Christmas bureau association, certain purchases by doorstep inc., exploration place, inc. and Kansas children's discovery center, inc. and sales of menstrual discharge collection devices and diapers and establishing an annual sales tax holiday exempting certain sales of school supplies, computers and clothing.

KS HB2450

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.

KS SB545

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.

KS SB169

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.

KS SB51

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.

KS HB2773

Providing a sales tax exemption for certain purchases by the boys' and girls' club of Topeka.