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Kansas Approves Tax Exemption for Data Centers, Effective July 2025

  • Kansas Senate Bill 98 was approved on April 24, 2025, providing a sales tax exemption for data centers.
  • The exemption applies to construction, remodeling, equipment, and labor services for qualified data centers.
  • The exemption is effective from July 1, 2025, and lasts up to 20 years.
  • Qualified data centers are buildings housing networked computer servers for data management.
  • Qualified firms are businesses registered with the state, involved in data center development or operation.
  • Requirements include application submission, construction within 10 years, $250 million investment, 20 new jobs, and a 10-year electricity purchase commitment.
  • Post-approval commitments involve cooperation with audits and providing information for economic reports.
  • The Secretary of Commerce reviews qualified firms every five years to ensure continued eligibility for the exemption.

Source: ryan.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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