Kansas Introduces 20-Year Sales Tax Exemption for Data Center Development and Operations

• Kansas has introduced a 20-year sales tax exemption for data center development and operations.
• The program aims to attract digital infrastructure investments and support economic development.
• Benefits include sales tax exemption on development costs, equipment, labor services, and contractor purchases.
• The tax exemption lasts 20 years regardless of investment amount, offering cost savings.
• Eligibility requires a $250 million investment in data center costs within 5 years.
• Businesses must create at least 20 new jobs within 2 years of starting operations.
• Construction must start within 10 years of the agreement date with the Secretary of Commerce.
• An electricity agreement for 10 years and water conservation practices are required.
• Construction must begin within 10 years of the agreement.
• Ongoing compliance includes reporting, audits, and adherence to commitments.
• Prior approval from the Kansas Fusion Center Oversight Board is necessary.
• Firms have 120 days to correct any breach of the agreement before suspension or termination of the exemption.

Source: dmainc.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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