WA HB2708

Eliminates the sales and use tax exemption for replacement server equipment at data centers, limiting the exemption to only original server equipment installations

Exemption for data centers qualifying through refurbishment expires July 1, 2026, with no new exemption certificates issued after that date for refurbished facilities

Maintains existing exemptions for original eligible server equipment and power infrastructure at qualifying data centers in rural counties (expires July 1, 2048) and counties with population over 800,000 (expires July 1, 2038)

Washington currently has 786 tax exemptions; the legislature intends to remove this preference to increase general fund revenue for essential state services

Changes take effect July 1, 2026