HB 136 Summary

• Creates a data center development grant program administered by the Third Frontier Commission to award competitive grants up to $5 million per eligible partnership (for-profit business partnered with state institution of higher education or nonpublic university), with total program funding capped at $50 million from the Third Frontier Research and Development Fund.

• Establishes a data center high speed fiber optic network grant program to award grants for providing fiber optic infrastructure to data centers established with assistance from the development grant program, capped at $25 million in total funding.

• Authorizes the Third Frontier Commission to adopt administrative rules for both grant programs including eligibility criteria, application procedures, evaluation standards, and reporting requirements.

• Reduces the kilowatt-hour excise tax for electric distribution companies supplying qualified data centers at discounted rates by applying a "discount ratio" calculation—the tax is multiplied by the ratio of the discounted rate to the unvaried rate, allowing proportional tax reduction based on the electricity price discount provided to the data center.

• Effective date for tax amendment applies to measurement periods beginning on or after the act's effective date.