Bill > HB1444

This bill amends Arkansas' sales and use tax exemption for data centers by expanding and clarifying definitions and requirements for two types of data centers: qualified data centers and a new category called qualified large data centers. For qualified data centers, the bill reduces the minimum investment requirement from $500 million to $100 million and allows the investment to be made within five years of construction commencing. For the new qualified large data centers, the bill establishes more complex requirements, including creating an investment of at least $2 billion within ten years, paying at least $3 million in aggregate annualized compensation, and operating servers across multiple non-adjacent physical locations connected by fiber networks. The bill broadens the definition of data center equipment to include related services, storage, and equipment, and clarifies the types of expenses and equipment that can be considered eligible. It also modifies the application and certification process, shifting oversight from the Arkansas Economic Development Commission to the Department of Finance and Administration. Additionally, the bill introduces provisions for revoking financial incentive certificates if investment or compensation requirements are not met, and provides a pathway for facilities within a large data center to maintain exemption status even if the entire center fails to meet the large data center requirements.