- 2024 LEGISLATURE LRBs0085/1LRB-0422/1 JK&MPG:amn&cjsJK&MPG:wlj/amn/skw ASSEMBLY SUBSTITUTEBILL AMENDMENT302 June 1, TO2023 ASSEMBLY- BILLIntroduced 302by JuneRepresentatives 21,Z 2023IMMERMAN -, OfferedW ITTK, A LLEN, ARMSTRONG , BINSFELD, REEN , RUG , MURPHY, NEDWESKI, OCONNOR , PETRYK, PRONSCHINSKE and R ETTINGER, cosponsored by RepresentativIMMERMANSenators QUINN , BRADLEY, COWLES , EYEN , NASSand W ANGGAARD .
AReferred Nto ACommittee CTon toWays renumber and amendMeans. 238.08;
toA amendN 71.78A (4)CT (m)to create 77.54 (70) and 71.78238.40 (5);of the statutes;
and to create 77.54 (70), 238.08 (2) and 238.40 of the statutes;
a sales and use tax exemption for data center equipment andor materialssoftware. and information sharing between the Department of Revenue and the Wisconsin Economic Development Corporation.
Analysis by the Legislative Reference Bureau This bill creates a sales and use tax exemption for equipment or software used at a qualified data center, as certified by the Wisconsin Economic Development Corporation, for the processing, storage, retrieval, or communication of data.
Because this bill relates to an exemption from state or local taxes, it may be referred to the Joint Survey Committee on Tax Exemptions for a report to be printed as an appendix to the bill.
For further information see the state and local fiscal estimate, which will be printed as an appendix to this bill.
SECTIONS ECTION 1.
71.78 (4) (m) of the statutes is amended to read:
71.78 (4) (m) The chief executive officer of the Wisconsin Economic Development Corporation and employees of the corporation to the extent necessary to administer the development zone program tax benefit programs under subch.
II of ch.
238, including review of tax credit applications, compliance with tax credit certifications, and confirming the amount of tax credits used for purposes of revoking tax credits.
LRBs0085/1 - 2024 Legislature - 2 - JK&MPG:amn&cjs SECTION 2 SECTION 2.
71.78 (5) of the statutes is amended to read:
71.78 (5) GREEMENT WITH DEPARTMENT.
Copies of returns and claims specified in sub.
(1) and related schedules, exhibits, writings or audit reports shall not be furnished to the persons listed under sub.
(4), except persons under sub.
(4) (e), (k), (m), (n), (o) and (q) or under an agreement between the department of revenue and another agency of government.
SECTION 3.
77.54 (70) (a) The sales price from the sale of and the storage, use, or other consumption of tangibleequipment personalor property,software regardlessused ofat whethera thequalified propertydata iscenter affixedcertified to or incorporated into real property, and property under s.
77.52238.40 (1) (c), used exclusively for the development,processing, construction,storage, renovation,retrieval, expansion, replacement, repair, or operationcommunication of adata, qualifiedincluding datathe center,following: as defined in s.
238.40- (1)2024 (b),Legislature - 2 - LRB-0422/1 JK&MPG:wlj/amn/skw ASSEMBLY BILL 302 SECTION 1 (a) Servers, routers, connections, monitoring and security systems, and other enabling machinery, equipment, and hardware, including computerreplacements, serverupgrades, equipmentcomponent parts, and installations, regardless of whether the chassisproperty foris suchaffixed equipment;to or incorporated into real property.
networking(b) equipment;Equipment used in the operation of computer equipment or software or for the benefit of the qualified data center, including component parts, installations, replacements, and upgrades, regardless of whether the property is affixed to or incorporated into real property.
switches;(c) All equipment used for the transformation, distribution, or management of electricity that is used to operate computer server equipment, including substations, uninterruptible energy equipment, supplies, conduit, fuel piping and storage, cabling, duct banks, switches, switchboards, batteries, testing equipment, and backup generation equipment.
racks;(d) All equipment necessary to cool and maintain a controlled environment for the operation of computer servers and other components of the qualified data center, including chillers, mechanical equipment, refrigerant piping, fuel piping and storage, adiabatic and free cooling systems, cooling towers, water softeners, air handling units, indoor direct exchange units, fans, ducting, and filters.
fiber-optic(e) cabling,All copperwater cabling,conservation andsystems, otherincluding cabling,facilities includingor cablingmechanisms usedthat toare connectdesigned oneto orcollect, moreconserve, qualifiedand datareuse centers;water.
trays;(f) All computer server equipment, including the chassis, networking equipment, switches, racks, fiber-optic and copper cabling, trays, and conduit.
conduit;(g) All conduit, ducting, and fiber-optic and copper cabling that may be located outside the qualified data center, directly related to connecting one or more qualified data center locations.
substations;LRB-0422/1 - 2024 Legislature - 3 - JK&MPG:wlj/amn/skw SECTION 1 ASSEMBLY BILL 302 (h) All monitoring equipment and security systems.
uninterruptible(i) energyModular equipment;data centers and preassembled components of any item described in this subsection, including components used in the manufacturing of modular data centers.
supplies;(j) All software.
fuel(k) pipingOther tangible and storage;intangible personal property that is essential, as determined by the Wisconsin Economic Development Corporation, to the operations of the qualified data center, excluding property used in the administration of the qualified data center.
duct(L) banks;All electricity used at a qualified data center.
switches;S ECTION 2.
switchboards;
batteries;
testing equipment;
backup generation equipment;
modular data centers and preassembled components;
monitoring equipment;
and security systems.
(b) The sales price from the sales of and the storage, use, or other consumption of tangible personal property or property under s.
77.52 (1) (c) used in the development, construction, renovation, expansion, replacement, or repair of a water cooling or conservation system used exclusively to cool or conserve water for one or more qualified data centers, as defined in s.
238.40 (1) (b), including chillers, mechanical equipment, refrigerant piping, fuel piping and storage, adiabatic and LRBs0085/1 - 2024 Legislature - 3 - JK&MPG:amn&cjs SECTION 3 free cooling systems, cooling towers, water softeners, air handling units, indoor direct exchange units, fans, ducting, and filters.
(c) The sales price from the sale of and the storage, use, or other consumption of tangible personal property or property under s.
77.52 (1) (c) sold to a construction contractor that, in fulfillment of a real property construction activity, transfers the tangible personal property or property under s.
77.52 (1) (c) to a qualified data center, as defined in s.
238.40 (1) (b), if such tangible personal property or property under s.
77.52 (1) (c) becomes a component of the qualified data center.
(d) The sales price from the sale of electricity used at a qualified data center, as defined in s.
238.40 (1) (b).
SECTION 4.
238.08 of the statutes is renumbered 238.08 (intro.) and amended to read:
238.08 Records of the corporation.
(intro.) All records of the corporation are open to the public as provided in s.
19.35 (1) except those records relating to pendingthe following:
(1) Pending grants, loans, or economic development projects that, in the opinion of the corporation, must remain confidential to protect the competitive nature of the grant, loan, or project.
SECTION 5.
238.08 (2) of the statutes is created to read:
238.08 (2) Confidential tax information received from the department of revenue under s.
71.78.
SECTION 6.
[LRB inserts date], for the development, acquisition, LRBs0085/1 - 2024 Legislature - 4 - JK&MPG:amn&cjs S ECTION 6 construction, renovation, expansion, replacement, or repair and the operation of a qualified data center in this state, including costs of tangibleequipment personalor propertysoftware, andas propertyspecified underin s.
77.52 (1) (c), as specified in s.
The buildings are rehabilitated or constructed to house a group of networked server computers in one physical location or multiple locations in order to centralize - 2024 Legislature - 4 - LRB-0422/1 JK&MPG:wlj/amn/skw ASSEMBLY BILL 302 SECTION 2 the processing, storage, management, retrieval, communication, or dissemination of data and information.
LRBs0085/1 - 2024 Legislature - 5 - JK&MPG:amn&cjs S ECTION 6 (c) “Qualified investment” means the aggregate, non-duplicative eligible data center costs expended at a qualified data center by an owner, operator, or tenant, or an affiliate of an owner, operator, or tenant, of the qualified data center.
(2) CERTIFICATION.(a)CERTIFICATION.The The corporation shall certify an owner, operator, or tenant, or an affiliate of an owner, operator, or tenant, of a qualified data center forto purposesclaim of the sales and use tax exemption under s.
77.54 (70).(70) in the manner prescribed by the corporation.
TheSECTION certification3.0Effective shalldate. include a description of the geographic location or locations and buildings of the qualified data center and an identification of the business entity specified in sub.
(1) (b).
The corporation shall contract with that business entity and shall, upon request, amend the certification and contract to include one or more additional locations and buildings of the qualified data center.
(b) If the corporation certifies a qualified data center for purposes of the sales and use tax exemption under s.
77.54 (70) and the data center fails to satisfy sub.
(1) (b) 2., the corporation shall revoke the certification.
All amounts of the sales and use tax exemption claimed under that certification as of the date of revocation shall become due and payable to each taxing authority against whom the exemption was claimed in the amounts so claimed.
The corporation may grant an extension of time within which the qualified data center may avoid revocation by satisfying the applicable qualified investment requirement under sub.
(1) (b) 2.
SECTION 7.0Effective date.