SD HB1005

Sales and use tax exemption for enterprise information technology equipment and computer software purchased for qualified data centers, lasting 50 years from the qualifying date

Qualified data centers must obtain building permits between July 1, 2026 and June 30, 2036, be subject to property taxation, and have fire suppression systems

Digital currency mining facilities are explicitly excluded from the definition of "data center" and do not qualify for the exemption

Eligible businesses must have electric utility agreements that prevent cost-shifting to other customers and must notify local water providers about consumption compatibility

Annual affidavit required by June 1st to maintain eligibility, with the Department of Revenue responsible for verifying qualifications and issuing exemption certificates