CT HB06514

Owners, operators, and colocation tenants of qualified data centers may apply to the Commissioner of Economic and Community Development for exemptions from sales and use taxes (Chapter 219) and property taxes (Chapter 203) on eligible data center costs and equipment.

Applicants must demonstrate the facility will be used as a qualified data center and make a qualified investment of at least $50 million (in enterprise zones or qualified opportunity zones) or $200 million (elsewhere) within five years of agreement effectiveness.

Tax exemption agreements are effective for 20 years, extendable to 30 years if the data center makes additional qualified investments of $200 million or $400 million depending on location, and agreements apply to subsequent owners, operators, and colocation tenants.

Data center owners must negotiate host municipality fee agreements with municipalities where facilities are located, with provisions for property tax assessment if agreement requirements are not met; noncompliance may be cured within 180 days or the agreement terminates.

An Office of Data Infrastructure Administration and Security is established within the Department of Economic and Community Development to serve as liaison, provide assistance, and ensure coordinated responses to applicants and qualified data centers.