Changes to Existing Law
HB1005 — Provide a sales and use tax exemption for goods and services related to data center operations.
2 sections modified+2902-0
View:
§ 10-45
New Section+2609
NEW SECTION added to Chapter 10-45
The terms used in this Act mean: (1) "Computer software," programs and other operating information used solely for the maintenance and operation of the a qualified data center; (2) "Data center," a centralized repository for the storage, management, dissemination, and processing of electronic data and information, except for that which relates to the mining of digital currency; (3) "Enterprise information technology equipment," the following products used solely for the maintenance and operation of the qualified data center: (a) Computer hardware, servers, storage arrays, backup systems, disaster recovery equipment, routers, cooling systems, temperature control infrastructure, network equipment, switches, load balancers, firewalls, network cabling, edge devices, network monitoring equipment, water treatment systems, chilled water equipment, economizers, cooling towers, and piping and pump equipment for cooling towers; (b) Power infrastructure for the management of electricity, dedicated distribution equipment, backup power generation systems, battery systems, construction materials for structures unique to data centers or other related insfrastructure excluding primary electric generation service, transmission, or utility distribution infrastructure; (c) Racking systems, raised flooring, cabling, or trays necessary for the maintenance and operation of a qualified data center; (d) Security systems, physical access control systems, surveillance systems, biometric scanners, security monitoring equipment, and monitoring systems, environmental monitoring systems, infrastructure management tools, and building management systems; (e) Testing and diagnostic equipment used for maintenance, commissioning, or troubleshooting; (f) Telecommunications and fiber infrastructure, fiber optic cabling, satellite equipment, and internet exchange components; and (g) Air quality systems, specialized HVAC, filtration, and humidity control equipment; (4) "Qualified business," the owner, operator, or tenant of a qualified data center or a proposed data center; (5) "Qualified data center," a facility located in this state: (a) Comprised of one or more buildings containing a data center; (b) Where all buildings that contain a data center qualify as real property subject to taxation pursuant to §§ 10-4-1 and 10-4-2; (c) Where the qualifying date occurs on or after July 1, 2026, and on or before June 30, 2036; and (d) Equipped with fire suppression and prevention systems; and (6) "Qualifying date," the date on which a building permit is issued for the initial construction of the facility. 21
§ 10-46
New Section+293
NEW SECTION added to Chapter 10-46
There are specifically exempted from the provisions of this chapter, gross receipts from the sale of enterprise information technology equipment or computer software to be used in a qualified data center. A qualified business is exempt for a period of fifty years after the qualifying date. 19