HB1476
To Create A Sales And Use Tax Exemption For Electricity Sold To A Data Center; And To Declare An Emergency.
Last Action (May 1, 2023): Died in House Committee at Sine Die Adjournment
Sponsors
AI-Generated Summary
House Bill 1476 seeks to provide tax incentives to attract data centers to Arkansas by establishing a sales and use tax exemption for electricity purchased by qualified data centers. To qualify, a facility must make a minimum capital investment of $100 million and create at least 50 new full-time jobs paying 150% of the local or state average hourly wage. The bill explicitly excludes facilities used for cryptocurrency operations from these benefits. It requires that electricity subject to the exemption be metered separately from other uses. The Department of Finance and Administration is authorized to establish metering requirements and certification processes for taxpayers. Additionally, the bill includes an emergency clause, allowing the act to take effect immediately upon approval, citing the need to stay competitive in attracting large-scale data center development.
Potential Impact Analysis
Who Might Benefit?
The primary beneficiaries are large-scale technology and data storage companies that meet the high-threshold capital investment and job creation requirements. Additionally, the state and local economies may benefit from the infusion of significant capital investment and the creation of high-wage jobs associated with these facilities.
Who Might Suffer?
The primary groups negatively impacted are the state and local governments, which will experience a reduction in tax revenue due to the sales and use tax exemption on electricity. Furthermore, other taxpayers may be indirectly impacted if the state needs to offset the loss of this revenue through other tax adjustments or reduced public funding in other sectors.
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