Arkansas 2025 Regular Session

Arkansas House Bill HB1444

Introduced
2/10/25  
Refer
2/10/25  
Report Pass
3/6/25  
Engrossed
3/10/25  
Refer
3/10/25  
Report Pass
3/19/25  
Refer
3/31/25  
Report Pass
4/3/25  
Enrolled
4/7/25  
Enrolled
4/8/25  
Chaptered
4/10/25  

Caption

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

Impact

This legislative amendment has the potential to significantly impact Arkansas's economic landscape by fostering an environment conducive to the development and operation of data centers. By offering substantial tax incentives, the state hopes to attract larger technology firms that are willing to invest in infrastructure and create jobs. Additionally, the exemption covers various costs associated with data center operations, such as equipment purchases and electricity, which could lower operational costs for businesses in this sector.

Summary

House Bill 1444 aims to amend existing laws regarding the sales and use tax exemptions applicable to data centers in Arkansas. The bill outlines definitions for various types of data center facilities, including 'qualified data centers' and 'qualified large data centers', establishing the prerequisites that such centers must meet to qualify for tax exemptions. Notably, the bill sets a high threshold for investment, requiring firms to create a minimum qualified investment of at least $500 million for a qualified data center and $2 billion for a large data center within a specified timeframe.

Contention

However, the bill may encounter some points of contention among various stakeholders. Critics might argue that such substantial tax breaks could lead to reduced revenues for state and local services. Moreover, there could be concerns regarding the environmental impacts of large data centers, especially in terms of electricity consumption and water usage for cooling. Proponents of the bill would argue that these incentives are crucial for attracting significant investments in a competitive tech landscape while supporting job growth in the state.

Companion Bills

No companion bills found.

Previously Filed As

AR 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.

AR SB508

To Amend The Used Tire Recycling And Accountability Act; To Amend The Used Tire Programs; And To Declare An Emergency.

AR HB1313

To Amend The Exemptions Of Life Insurance Proceeds From Actions By Creditors And Representatives.

AR HB1317

To Provide For A Reduced Sales And Use Tax Rate For Natural Gas, Electricity, And Coal Used By A Data Center; And To Declare An Emergency.

AR HB1476

To Create A Sales And Use Tax Exemption For Electricity Sold To A Data Center; And To Declare An Emergency.

AR SB441

To Amend The Sales And Use Tax Laws Concerning Exemptions Related To Certain Machinery And Equipment; And To Allow A Sales And Use Tax Exemption For Certain Machinery And Equipment Placed In Inventory.

AR SB79

To Amend The Arkansas Data Centers Act Of 2023; To Provide For The Regulation Of Digital Asset Mining Businesses; And To Declare An Emergency.

AR HB1369

To Require Public Entities To Create A Policy Concerning The Authorized Use Of Technology Resources And A Cyber Security Policy; And To Amend The Duties Of The State Cyber Security Office.

AR SB297

To Amend The Arkansas Underground Facilities Damage Prevention Act; And To Declare An Emergency.

AR HB1478

To Amend The Sales And Use Tax Exemption For Commercial Jet Aircraft.

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