Bill > SB51

This bill provides a sales tax exemption for the construction or remodeling of qualified data centers in Kansas. Specifically, the bill offers tax breaks to firms that invest at least $250,000,000 in a data center within five years and create at least 20 new jobs within two years of beginning operations. The sales tax exemption will cover eligible data center costs, data center equipment, and labor services related to installing or maintaining such equipment. The duration of the tax exemption depends on the level of investment: 10 years for a $250 million investment, 20 years for a $500 million investment, and 40 years for a $1 billion investment. To qualify, firms must apply to the Secretary of Commerce, commit to the investment and job creation timeline, and agree to various reporting and audit requirements. A "data center" is defined as a group of networked computer servers used to centralize data storage and management, and must be connected by fiber for redundancy and resiliency. The bill is designed to attract large-scale technology investments to Kansas by offering significant long-term tax incentives for companies that make substantial infrastructure investments in the state.

Budget and Finance, Business and Industry

Commerce (S)

https://kslegislature.gov/li/b2025_26/measures/sb51/