Wisconsin 2023-2024 Regular Session

Wisconsin Senate Bill SB308 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 SENATE BILL 308
5	5	May 24, 2023 - Introduced by Senators QUINN, WANGGAARD, BRADLEY, COWLES,
6	6	FEYEN and NASS, cosponsored by Representatives ZIMMERMAN, WITTKE, ALLEN,
7	7	ARMSTRONG, BINSFELD, GREEN, MURPHY, NEDWESKI, O'CONNOR, PETRYK,
8	8	PRONSCHINSKE and RETTINGER. Referred to Committee on Universities and
9	9	Revenue.
10	10	AN ACT to create 77.54 (70) and 238.40 of the statutes; relating to: a sales and
11	11	use tax exemption for data center equipment or software.
12	12	Analysis by the Legislative Reference Bureau
13	13	This bill creates a sales and use tax exemption for equipment or software used
14	14	at a qualified data center, as certified by the Wisconsin Economic Development
15	15	Corporation, for the processing, storage, retrieval, or communication of data.
16	16	Because this bill relates to an exemption from state or local taxes, it may be
17	17	referred to the Joint Survey Committee on Tax Exemptions for a report to be printed
18	18	as an appendix to the bill.
19	19	For further information see the state and local fiscal estimate, which will be
20	20	printed as an appendix to this bill.
21	21	The people of the state of Wisconsin, represented in senate and assembly, do
22	22	enact as follows:
23	23	SECTION 1. 77.54 (70) of the statutes is created to read:
24	24	77.54 (70) The sale of and the storage, use, or other consumption of equipment
25	25	or software used at a qualified data center certified under s. 238.40 for the
26	26	processing, storage, retrieval, or communication of data, including the following:
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34	34	SECTION 1 SENATE BILL 308
35	35	(a) Servers, routers, connections, monitoring and security systems, and other
36	36	enabling machinery, equipment, and hardware, including replacements, upgrades,
37	37	component parts, and installations, regardless of whether the property is affixed to
38	38	or incorporated into real property.
39	39	(b) Equipment used in the operation of computer equipment or software or for
40	40	the benefit of the qualified data center, including component parts, installations,
41	41	replacements, and upgrades, regardless of whether the property is affixed to or
42	42	incorporated into real property.
43	43	(c) All equipment used for the transformation, distribution, or management of
44	44	electricity that is used to operate computer server equipment, including substations,
45	45	uninterruptible energy equipment, supplies, conduit, fuel piping and storage,
46	46	cabling, duct banks, switches, switchboards, batteries, testing equipment, and
47	47	backup generation equipment.
48	48	(d) All equipment necessary to cool and maintain a controlled environment for
49	49	the operation of computer servers and other components of the qualified data center,
50	50	including chillers, mechanical equipment, refrigerant piping, fuel piping and
51	51	storage, adiabatic and free cooling systems, cooling towers, water softeners, air
52	52	handling units, indoor direct exchange units, fans, ducting, and filters.
53	53	(e) All water conservation systems, including facilities or mechanisms that are
54	54	designed to collect, conserve, and reuse water.
55	55	(f) All computer server equipment, including the chassis, networking
56	56	equipment, switches, racks, fiber-optic and copper cabling, trays, and conduit.
57	57	(g) All conduit, ducting, and fiber-optic and copper cabling that may be located
58	58	outside the qualified data center, directly related to connecting one or more qualified
59	59	data center locations.
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87	87	SECTION 1
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89	89	(h) All monitoring equipment and security systems.
90	90	(i) Modular data centers and preassembled components of any item described
91	91	in this subsection, including components used in the manufacturing of modular data
92	92	centers.
93	93	(j) All software.
94	94	(k) Other tangible and intangible personal property that is essential, as
95	95	determined by the Wisconsin Economic Development Corporation, to the operations
96	96	of the qualified data center, excluding property used in the administration of the
97	97	qualified data center.
98	98	(L) All electricity used at a qualified data center.
99	99	SECTION 2. 238.40 of the statutes is created to read:
100	100	238.40 Data centers. (1) DEFINITIONS. In this section:
101	101	(a) “Eligible data center costs” means expenditures made after the effective
102	102	date of this paragraph .... [LRB inserts date], for the development, acquisition,
103	103	construction, renovation, expansion, replacement, or repair and the operation of a
104	104	qualified data center in this state, including costs of equipment or software, as
105	105	specified in s. 77.54 (70), land, buildings, site improvements, modular data centers,
106	106	computer data center equipment acquisition and permitting, lease payments, site
107	107	characterization and assessment, engineering, and design used at a qualified data
108	108	center in this state.
109	109	(b) “Qualified data center” means one or more buildings or an array of
110	110	connected buildings owned, leased, or operated by the same business entity, as
111	111	defined in s. 13.62 (5), or its affiliate and for which all of the following apply:
112	112	1. The buildings are rehabilitated or constructed to house a group of networked
113	113	server computers in one physical location or multiple locations in order to centralize
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140	140	SECTION 2 SENATE BILL 308
141	141	the processing, storage, management, retrieval, communication, or dissemination of
142	142	data and information.
143	143	2. The buildings create a minimum qualified investment in this state of any of
144	144	the following amounts within 5 years from the date on which the corporation certifies
145	145	the data center as eligible to claim the exemption under s. 77.54 (70):
146	146	a. For buildings located in a county having a population greater than 100,000,
147	147	$150,000,000.
148	148	b. For buildings located in a county having a population greater than 50,000
149	149	and not more than 100,000, $100,000,000.
150	150	c. For buildings in a county having a population of not more than 50,000,
151	151	$50,000,000.
152	152	d. For buildings located in more than one county, the amount provided under
153	153	subd. 2. a., b., or c. for the most populous county in which the buildings are located.
154	154	(c) “Qualified investment” means the aggregate, non-duplicative eligible data
155	155	center costs expended at a qualified data center by an owner, operator, or tenant, or
156	156	an affiliate of an owner, operator, or tenant, of the qualified data center.
157	157	(2) CERTIFICATION. The corporation shall certify an owner, operator, or tenant,
158	158	or an affiliate of an owner, operator, or tenant, of a qualified data center to claim the
159	159	sales and use tax exemption under s. 77.54 (70) in the manner prescribed by the
160	160	corporation.
161	161	SECTION 3.0Effective date.
162	162	(1) DATA CENTER EXEMPTION. This act takes effect on the first day of the 3rd
163	163	month beginning after publication.
164	164	(END)
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