Bill > SB98

This bill provides a comprehensive framework for sales tax exemptions and regulatory oversight for qualified data centers in Kansas. The legislation allows a qualified firm that invests at least $250 million in a data center and creates at least 20 new jobs within two years to receive a 20-year sales tax exemption for data center equipment, eligible data center costs, and related labor services. To be eligible, the firm must commit to specific conditions such as purchasing electricity from the local utility for 10 years, implementing water conservation practices, and agreeing to periodic reviews by the secretary of commerce. Importantly, the bill also prohibits public utilities from providing discounted electric rates to data centers and requires all qualified data center projects to be reviewed and approved by the Kansas Intelligence Fusion Center to assess potential security risks to critical infrastructure. The bill defines key terms like "data center equipment" and "qualified data center" and establishes a detailed process for obtaining and maintaining the sales tax exemption, including potential penalties for non-compliance. The legislation aims to attract large data center investments to Kansas while ensuring stringent economic development and security standards.

Transportation and Infrastructure

https://kslegislature.gov/li/b2025_26/measures/sb98/