Wisconsin 2023-2024 Regular Session

Wisconsin Assembly Bill AB302

Introduced
6/1/23  
Refer
6/1/23  
Report Pass
6/15/23  
Refer
6/15/23  
Engrossed
6/21/23  
Refer
6/23/23  

Caption

A sales and use tax exemption for data center equipment or software. (FE)

Impact

The implications of AB302 are significant for state laws concerning tax exemptions and economic development programs. By creating tax incentives for data centers, the bill seeks to attract larger investments that will enhance Wisconsin's position in the tech industry. There are specific monetary thresholds for investment required by businesses seeking certification as qualified data centers, which vary based on the population density of the location in which they are built. This structured approach could lead to substantial economic benefits for both urban and rural areas in Wisconsin, depending on how businesses respond to these incentives.

Summary

Assembly Bill 302 introduces a sales and use tax exemption specifically targeting equipment and software utilized at certified data centers in Wisconsin. This legislation is part of the broader initiative to enhance the state’s technological infrastructure by providing financial incentives for businesses in the data processing, storage, and communication sectors. The bill outlines that any equipment or software used at a qualified data center, which is certified under a specific statutory provision, will be exempt from sales and use taxes. This move aims to stimulate investment in data center facilities across the state.

Contention

Despite the apparent economic benefits, the bill has faced scrutiny and contention during discussions. Critics may argue about the long-term effects of such tax exemptions, especially regarding revenue loss for local and state governments which could otherwise be allocated for public services. There are concerns regarding the specificity of exemptions provided and whether they might lead to a preference for larger, corporate entities at the expense of smaller local businesses. The bill's proponents, however, believe it will level the playing field by encouraging technological advancements and competitive investments in the state.

Companion Bills

No companion bills found.

Previously Filed As

WI SB308

A sales and use tax exemption for data center equipment or software. (FE)

WI HB1654

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.

WI HB1546

Data centers; sales and use tax exemption for certain equipment or enabling software.

WI HB1546

Data centers; sales and use tax exemption for certain equipment or enabling software.

WI HB1444

To Amend The Sales And Use Tax Exemption For Data Centers.

WI AB245

Modifying the sales and use tax exemption for qualified data centers. (FE)

WI SB244

Modifying the sales and use tax exemption for qualified data centers. (FE)

WI SB58

Sales and Use Tax Law: exemptions: certified data center facilities.

WI HB827

Provides relative to sales and use tax rebates on the sale of certain communications and data center equipment (EN DECREASE GF RV See Note)

WI H6097

Creates qualified data centers and tax exemptions.

Similar Bills

No similar bills found.