HB485 Summary

• Reduces minimum employment threshold for data processing centers from 50 to 20 new jobs, with average annual compensation of at least $40,000 per employee.

• Allows tax abatements for data processing centers for up to 30 years based on capital investment: 10 years if investment does not exceed $100 million, 20 years if between $100-$300 million, and 30 years if exceeding $300 million within specified timeframes.

• Expands scope of construction-related transaction tax abatements to include computer software and all equipment necessary for data processing center operation (computers, cooling systems, power infrastructure, networking equipment).

• Authorizes municipalities, counties, and public industrial authorities to grant abatements of ad valorem taxes and construction-related transaction taxes to private data processing center users, subject to minimum capital investment requirements.

• Applies to data processing centers engaged in data processing services, hosting, infrastructure provision, application service provisioning, and related activities; requires capital investments to be measured from the date property is placed in service.