SB 6231 — Removing a tax exemption for the replacement of equipment for data centers.

ENGROSSEDZ-0629.1 SUBSTITUTE SENATE BILL 6231 State of Washington 69th Legislature 2026 Regular Session By Senate Ways & Means (originally sponsored by Senators Frame and Hasegawa;

by request of Office of Financial Management)Management READRead FIRSTfirst TIMEtime 02/23/26.01/20/26.

Referred to Committee on Ways & Means.

1 ESSBSB 6231 (1)(a) An exemption from the tax imposed by RCW 82.08.020 is provided for sales to qualifying businesses and to qualifying tenants of eligible server equipment to be installed, without intervening use, in an eligible computer data center to which a valid exemption certificate applies, and to charges made for labor and services rendered in respect to installing eligible server equipment.

2 ESSBSB 6231 (c) With respect to computer data centers for which the commencement of construction occurs after July 1, 2015, but before July 1, 2019, the exemption provided in this section is limited to no more than eight computer data centers, with total eligible data centers provided under this section limited to 12 from July 1, 2015, through June 9, 2022.

3 ESSBSB 6231 (i) The owner of an eligible computer data center, in addition to its own net increase in family wage employment positions, may include:

4 ESSBSB 6231 not exist or had not previously been filled as of the date that the department issued an exemption certificate.

5 ESSBSB 6231 operation of the computer data center, such as security and building maintenance, and provided that all of the applicable requirements in (c)(i) of this subsection (3) are met.

6 ESSBSB 6231 (v) LEED for building design and construction or LEED for operations and maintenance;

7 ESSBSB 6231 (d) Taking actions to conserve, reuse, and replace water.

8 ESSBSB 6231 (b) "Building" means a fully enclosed structure with a weather resistant exterior wall envelope or concrete or masonry walls designed in accordance with the requirements for structures under chapter 19.27 RCW.

9 ESSBSB 6231 applications, and other online services, regardless of whether a charge is made for such services.

10 ESSBSB 6231 this subsection (8), the original server equipment installed in an eligible computer data center on or after April 1, 2010, and before January 1, 2026, and replacement server equipment.

11 ESSBSB 6231 (B) Is installed and put into regular use no later than 12 years after the date of the certificate of occupancy or completion of refurbishment of the computer data center.)) (iv) For a qualifying tenant who leases space within an eligible computer data center, "eligible server equipment" means the original server equipment installed within the space it leases from an eligible computer data center with an exemption certificate on or after April 1, 2010 ((, and replacement server equipment.

12 ESSBSB 6231 (f)(i)(C)(I) of this subsection (8), if the lessee and lessor are affiliated and:

13 ESSBSB 6231 certificate applies, and to charges made for labor and services rendered in respect to installing eligible server equipment.

14 ESSBSB 6231 (A) Six applications to obtain the exemptions for qualifying businesses in the first calendar year of the exemption;

15 ESSBSB 6231 (i) The owner of an eligible computer data center, in addition to its own net increase in family wage employment positions, may include:

16 ESSBSB 6231 of the date that the department issued an exemption certificate to the qualifying business or qualifying tenant of an eligible computer data center, as the case may be.

17 ESSBSB 6231 (4) For exemption certificates issued on or after June 9, 2022:

18 ESSBSB 6231 (a) Coordinating with the industrial waste coordination program established under RCW 43.31.625 to identify and provide technical assistance in implementing industrial symbiosis projects;

19 ESSBSB 6231 (C) Is the resulting entity of a merger or consolidation with the certificate holder.

20 ESSBSB 6231 (iii) A facility comprised of one building or more than one building must have a combined square footage of at least 100,000 square feet.

21 ESSBSB 6231 (iii))) For a qualifying tenant who leases space within an eligible computer data center, "eligible server equipment" means the original server equipment installed within the space it leases from an eligible computer data center with an exemption certificate on or within 10 years of June 9, 2022((, and replacement server equipment.

22 ESSBSB 6231 update or modernize servers, server space, ventilation, or power infrastructure in an eligible computer data center.

23 ESSBSB 6231