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SD SB234
Bill
Status
Introduced
2/4/2026
Primary Sponsor
Casey Crabtree
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AI Summary
- Exempts enterprise information technology equipment and computer software purchased for use in qualified data centers from South Dakota sales tax (chapter 10-45) and use tax (chapter 10-46)
- Defines "qualified data center" as a facility in South Dakota comprising one or more buildings containing a data center, subject to real property taxation, and equipped with fire suppression systems; explicitly excludes facilities related to digital currency mining
- Covers a broad range of exempt equipment including servers, storage arrays, cooling systems, power infrastructure, backup generation, security systems, telecommunications/fiber infrastructure, HVAC, racking systems, and testing/diagnostic equipment used solely for data center operations
- Requires qualified businesses to submit documentary evidence (kept confidential) to the Department of Revenue for eligibility determination, ensure electric service agreements avoid shifting costs to other utility customers, and notify local water providers about water consumption compatibility
- Qualified businesses must file an annual affidavit with the Secretary of Revenue prior to June 1 each year attesting to continued eligibility to retain the tax exemption
Legislative Description
Modify provisions pertaining to the purchasing of goods and services related to data center operations.
Taxation
Last Action
State Affairs Deferred to the 41st legislative day, Passed, YEAS 5, NAYS 4. S.J. 27
2/18/2026
Committee Referrals
State Affairs2/5/2026
Full Bill Text
No bill text available