Wisconsin 2023-2024 Regular Session

Wisconsin Assembly Bill AB302 Compare Versions

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

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3	3	2023 - 2024 LEGISLATURE
4	4	2023 ASSEMBLY BILL 302
5	5	June 1, 2023 - Introduced by Representatives ZIMMERMAN, WITTKE, ALLEN,
6	6	ARMSTRONG, BINSFELD, GREEN, KRUG, MURPHY, NEDWESKI, O'CONNOR, PETRYK,
7	7	PRONSCHINSKE and RETTINGER, cosponsored by Senators QUINN, BRADLEY,
8	8	COWLES, FEYEN, NASS and WANGGAARD. Referred to Committee on Ways and
9	9	Means.
10	10	*AUTHORS SUBJECT TO CHANGE*
11	11	AN ACT to create 77.54 (70) and 238.40 of the statutes; relating to: a sales and
12	12	use tax exemption for data center equipment or software.
13	13	Analysis by the Legislative Reference Bureau
14	14	This bill creates a sales and use tax exemption for equipment or software used
15	15	at a qualified data center, as certified by the Wisconsin Economic Development
16	16	Corporation, for the processing, storage, retrieval, or communication of data.
17	17	Because this bill relates to an exemption from state or local taxes, it may be
18	18	referred to the Joint Survey Committee on Tax Exemptions for a report to be printed
19	19	as an appendix to the bill.
20	20	For further information see the state and local fiscal estimate, which will be
21	21	printed as an appendix to this bill.
22	22	The people of the state of Wisconsin, represented in senate and assembly, do
23	23	enact as follows:
24	24	SECTION 1. 77.54 (70) of the statutes is created to read:
25	25	77.54 (70) The sale of and the storage, use, or other consumption of equipment
26	26	or software used at a qualified data center certified under s. 238.40 for the
27	27	processing, storage, retrieval, or communication of data, including the following:
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35	35	SECTION 1 ASSEMBLY BILL 302
36	36	(a) Servers, routers, connections, monitoring and security systems, and other
37	37	enabling machinery, equipment, and hardware, including replacements, upgrades,
38	38	component parts, and installations, regardless of whether the property is affixed to
39	39	or incorporated into real property.
40	40	(b) Equipment used in the operation of computer equipment or software or for
41	41	the benefit of the qualified data center, including component parts, installations,
42	42	replacements, and upgrades, regardless of whether the property is affixed to or
43	43	incorporated into real property.
44	44	(c) All equipment used for the transformation, distribution, or management of
45	45	electricity that is used to operate computer server equipment, including substations,
46	46	uninterruptible energy equipment, supplies, conduit, fuel piping and storage,
47	47	cabling, duct banks, switches, switchboards, batteries, testing equipment, and
48	48	backup generation equipment.
49	49	(d) All equipment necessary to cool and maintain a controlled environment for
50	50	the operation of computer servers and other components of the qualified data center,
51	51	including chillers, mechanical equipment, refrigerant piping, fuel piping and
52	52	storage, adiabatic and free cooling systems, cooling towers, water softeners, air
53	53	handling units, indoor direct exchange units, fans, ducting, and filters.
54	54	(e) All water conservation systems, including facilities or mechanisms that are
55	55	designed to collect, conserve, and reuse water.
56	56	(f) All computer server equipment, including the chassis, networking
57	57	equipment, switches, racks, fiber-optic and copper cabling, trays, and conduit.
58	58	(g) All conduit, ducting, and fiber-optic and copper cabling that may be located
59	59	outside the qualified data center, directly related to connecting one or more qualified
60	60	data center locations.
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88	88	SECTION 1
89	89	ASSEMBLY BILL 302
90	90	(h) All monitoring equipment and security systems.
91	91	(i) Modular data centers and preassembled components of any item described
92	92	in this subsection, including components used in the manufacturing of modular data
93	93	centers.
94	94	(j) All software.
95	95	(k) Other tangible and intangible personal property that is essential, as
96	96	determined by the Wisconsin Economic Development Corporation, to the operations
97	97	of the qualified data center, excluding property used in the administration of the
98	98	qualified data center.
99	99	(L) All electricity used at a qualified data center.
100	100	SECTION 2. 238.40 of the statutes is created to read:
101	101	238.40 Data centers. (1) DEFINITIONS. In this section:
102	102	(a) “Eligible data center costs” means expenditures made after the effective
103	103	date of this paragraph .... [LRB inserts date], for the development, acquisition,
104	104	construction, renovation, expansion, replacement, or repair and the operation of a
105	105	qualified data center in this state, including costs of equipment or software, as
106	106	specified in s. 77.54 (70), land, buildings, site improvements, modular data centers,
107	107	computer data center equipment acquisition and permitting, lease payments, site
108	108	characterization and assessment, engineering, and design used at a qualified data
109	109	center in this state.
110	110	(b) “Qualified data center” means one or more buildings or an array of
111	111	connected buildings owned, leased, or operated by the same business entity, as
112	112	defined in s. 13.62 (5), or its affiliate and for which all of the following apply:
113	113	1. The buildings are rehabilitated or constructed to house a group of networked
114	114	server computers in one physical location or multiple locations in order to centralize
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141	141	SECTION 2 ASSEMBLY BILL 302
142	142	the processing, storage, management, retrieval, communication, or dissemination of
143	143	data and information.
144	144	2. The buildings create a minimum qualified investment in this state of any of
145	145	the following amounts within 5 years from the date on which the corporation certifies
146	146	the data center as eligible to claim the exemption under s. 77.54 (70):
147	147	a. For buildings located in a county having a population greater than 100,000,
148	148	$150,000,000.
149	149	b. For buildings located in a county having a population greater than 50,000
150	150	and not more than 100,000, $100,000,000.
151	151	c. For buildings in a county having a population of not more than 50,000,
152	152	$50,000,000.
153	153	d. For buildings located in more than one county, the amount provided under
154	154	subd. 2. a., b., or c. for the most populous county in which the buildings are located.
155	155	(c) “Qualified investment” means the aggregate, non-duplicative eligible data
156	156	center costs expended at a qualified data center by an owner, operator, or tenant, or
157	157	an affiliate of an owner, operator, or tenant, of the qualified data center.
158	158	(2) CERTIFICATION. The corporation shall certify an owner, operator, or tenant,
159	159	or an affiliate of an owner, operator, or tenant, of a qualified data center to claim the
160	160	sales and use tax exemption under s. 77.54 (70) in the manner prescribed by the
161	161	corporation.
162	162	SECTION 3.0Effective date.
163	163	(1) DATA CENTER EXEMPTION. This act takes effect on the first day of the 3rd
164	164	month beginning after publication.
165	165	(END)
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