Bill > HF5125

This bill repeals the sales and use tax exemption for data centers, meaning that purchases of enterprise information technology equipment and computer software for use in qualified data centers will no longer be exempt from sales tax. The bill also repeals a provision that would have reduced special education aid appropriations if certain savings targets were not met, and instead mandates a $250,000,000 reduction in special education aid for the biennium starting July 1, 2027, and subsequent biennia, unless legislative action offsets this reduction. The bill redefines what constitutes a "qualified large-scale data center" and "enterprise information technology equipment" for future reference, with these changes taking effect on July 1, 2026.