HB3412 Summary: Data Center Investment Tax Exemptions

• Creates tax exemptions for qualified data centers on tangible personal property used in construction or operation, effective January 1, 2020, covering state and local sales taxes, use taxes, service taxes, and electricity excise taxes.

• Requires data centers to meet strict criteria: minimum $250 million capital investment over 60 months, creation of at least 20 full-time jobs with compensation at 120% of county median wage, and carbon neutrality or green building certification (LEED, ENERGY STAR, ISO 50001, etc.).

• Establishes Department of Revenue certificate of exemption program with memorandum of understanding requirements specifying capital investment details, job creation timelines, and repayment obligations if goals are not achieved.

• Defines "qualified tangible personal property" broadly to include servers, electrical systems, cooling equipment, cabling, software, building materials, and all data center infrastructure necessary for operations.

• Requires annual reporting to Governor and General Assembly beginning July 1, 2021, detailing recipient businesses, project locations, tax credit values, job creation, and whether projects are located in underserved areas.