Texas 2025 - 89th Regular

Texas Senate Bill SB2888 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	89R15899 JBD-D
2	2	By: Cook S.B. No. 2888
3	3
4	4
5	5
6	6
7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to the temporary sales and use tax exemptions for certain
10	10	tangible personal property related to data centers and large data
11	11	center projects.
12	12	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
13	13	SECTION 1. Section 151.359(d), Tax Code, is amended to read
14	14	as follows:
15	15	(d) Subject to Subsection (k), a data center may be
16	16	certified by the comptroller as a qualifying data center for
17	17	purposes of this section if, on or after September 1, 2013:
18	18	(1) a single qualifying occupant:
19	19	(A) contracts with a qualifying owner or
20	20	qualifying operator to lease space in which the qualifying occupant
21	21	will locate a data center; or
22	22	(B) occupies a space that was not previously used
23	23	as a data center in which the qualifying occupant will locate a data
24	24	center, in the case of a qualifying occupant who is also the
25	25	qualifying operator and the qualifying owner; [and]
26	26	(2) the qualifying owner, qualifying operator, or
27	27	qualifying occupant, jointly or independently:
28	28	(A) creates at least 20 qualifying jobs in the
29	29	county in which the data center is located, not including jobs moved
30	30	from one county in this state to another county in this state; and
31	31	(B) makes or agrees to make a capital investment,
32	32	on or after September 1, 2013, of at least $200 million in that
33	33	particular data center over a five-year period beginning on the
34	34	date the data center is certified by the comptroller as a qualifying
35	35	data center; and
36	36	(3) the data center described by Subdivision (1)
37	37	includes the following energy conservation and efficiency
38	38	measures:
39	39	(A) use of a liquid cooling system instead of an
40	40	air cooling system;
41	41	(B) use of a row- or rack-based air cooling
42	42	system instead of a room-based air cooling system; and
43	43	(C) use of Energy Star-certified servers.
44	44	SECTION 2. Section 151.3595(d), Tax Code, is amended to
45	45	read as follows:
46	46	(d) Subject to Subsection (j), a large data center project
47	47	may be certified by the comptroller as a qualifying large data
48	48	center project for purposes of this section if, on or after June 1,
49	49	2015:
50	50	(1) a single qualifying occupant:
51	51	(A) contracts with a qualifying owner or
52	52	qualifying operator to lease space in which the qualifying occupant
53	53	will locate a large data center project; or
54	54	(B) occupies a space that was not previously used
55	55	as a data center in which the qualifying occupant will locate a
56	56	large data center project, in the case of a qualifying occupant who
57	57	is also the qualifying operator and the qualifying owner; [and]
58	58	(2) the qualifying owner, qualifying operator, or
59	59	qualifying occupant, independently or jointly:
60	60	(A) creates at least 40 qualifying jobs in the
61	61	county in which the large data center project is located, not
62	62	including jobs moved from one county in this state to another county
63	63	in this state;
64	64	(B) on or after May 1, 2015, makes or agrees to
65	65	make a capital investment of at least $500 million in that
66	66	particular large data center project, the amount of which may not
67	67	include a capital investment to replace personal property
68	68	previously placed in service in that large data center project,
69	69	over a five-year period beginning on the earlier of:
70	70	(i) the date the large data center project
71	71	submits the application described by Subsection (e); or
72	72	(ii) the date the large data center project
73	73	is certified by the comptroller as a qualifying large data center
74	74	project; and
75	75	(C) agrees to contract for at least 20 megawatts
76	76	of transmission capacity for operation of the large data center
77	77	project; and
78	78	(3) the large data center project includes the
79	79	following energy conservation and efficiency measures:
80	80	(A) use of a liquid cooling system instead of an
81	81	air cooling system;
82	82	(B) use of a row- or rack-based air cooling
83	83	system instead of a room-based air cooling system; and
84	84	(C) use of Energy Star-certified servers.
85	85	SECTION 3. (a) Section 151.359(d), Tax Code, as amended by
86	86	this Act, applies only to the certification of a data center as a
87	87	qualifying data center for purposes of Section 151.359, Tax Code,
88	88	as amended by this Act, on or after September 1, 2026.
89	89	(b) Section 151.3595(d), Tax Code, as amended by this Act,
90	90	applies only to the certification of a large data center project as
91	91	a qualifying large data center project for purposes of Section
92	92	151.3595, Tax Code, as amended by this Act, on or after September 1,
93	93	2026.
94	94	SECTION 4. This Act takes effect September 1, 2025.