SB2888 - Relating to the temporary sales and use tax exemptions for certain tangible personal property related to data centers and large data center projects.

  89R15899 JBD-D     By: Cook S.B. No. 2888       A BILL TO BE ENTITLED   AN ACT   relating to the temporary sales and use tax exemptions for certain   tangible personal property related to data centers and large data   center projects.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Section 151.359(d), Tax Code, is amended to read   as follows:          (d)  Subject to Subsection (k), a data center may be   certified by the comptroller as a qualifying data center for   purposes of this section if, on or after September 1, 2013:                (1)  a single qualifying occupant:                      (A)  contracts with a qualifying owner or   qualifying operator to lease space in which the qualifying occupant   will locate a data center; or                      (B)  occupies a space that was not previously used   as a data center in which the qualifying occupant will locate a data   center, in the case of a qualifying occupant who is also the   qualifying operator and the qualifying owner; [ and ]                (2)  the qualifying owner, qualifying operator, or   qualifying occupant, jointly or independently:                      (A)  creates at least 20 qualifying jobs in the   county in which the data center is located, not including jobs moved   from one county in this state to another county in this state; and                      (B)  makes or agrees to make a capital investment,   on or after September 1, 2013, of at least $200 million in that   particular data center over a five-year period beginning on the   date the data center is certified by the comptroller as a qualifying   data center ; and                 (3)     the data center described by Subdivision (1)   includes the following energy conservation and efficiency   measures:                       (A)     use of a liquid cooling system instead of an   air cooling system;                       (B)     use of a row- or rack-based air cooling   system instead of a room-based air cooling system; and                       (C)  use of Energy Star-certified servers .          SECTION 2.  Section 151.3595(d), Tax Code, is amended to   read as follows:          (d)  Subject to Subsection (j), a large data center project   may be certified by the comptroller as a qualifying large data   center project for purposes of this section if, on or after June 1,   2015:                (1)  a single qualifying occupant:                      (A)  contracts with a qualifying owner or   qualifying operator to lease space in which the qualifying occupant   will locate a large data center project; or                      (B)  occupies a space that was not previously used   as a data center in which the qualifying occupant will locate a   large data center project, in the case of a qualifying occupant who   is also the qualifying operator and the qualifying owner; [ and ]                (2)  the qualifying owner, qualifying operator, or   qualifying occupant, independently or jointly:                      (A)  creates at least 40 qualifying jobs in the   county in which the large data center project is located, not   including jobs moved from one county in this state to another county   in this state;                      (B)  on or after May 1, 2015, makes or agrees to   make a capital investment of at least $500 million in that   particular large data center project, the amount of which may not   include a capital investment to replace personal property   previously placed in service in that large data center project,   over a five-year period beginning on the earlier of:                            (i)  the date the large data center project   submits the application described by Subsection (e); or                            (ii)  the date the large data center project   is certified by the comptroller as a qualifying large data center   project; and                      (C)  agrees to contract for at least 20 megawatts   of transmission capacity for operation of the large data center   project ; and                 (3)     the large data center project includes the   following energy conservation and efficiency measures:                       (A)     use of a liquid cooling system instead of an   air cooling system;                       (B)     use of a row- or rack-based air cooling   system instead of a room-based air cooling system; and                       (C)  use of Energy Star-certified servers .          SECTION 3.  (a) Section 151.359(d), Tax Code, as amended by   this Act, applies only to the certification of a data center as a   qualifying data center for purposes of Section 151.359, Tax Code,   as amended by this Act, on or after September 1, 2026.          (b)  Section 151.3595(d), Tax Code, as amended by this Act,   applies only to the certification of a large data center project as   a qualifying large data center project for purposes of Section   151.3595, Tax Code, as amended by this Act, on or after September 1,   2026.          SECTION 4.  This Act takes effect September 1, 2025.