Signed by Governor Ned Lamont

Vote Smart's Synopsis:

Vote to pass a bill that establishes tax breaks for data centers as incentives for them to relocate to the state.

Highlights:

• Defines "qualified data center" as a facility that is developed, acquired, constructed, rehabilitated, renovated, repaired or operated, to house a group of networked computer servers in one physical location or multiple contiguous locations to centralize the storage, management and dissemination of data and information pertaining to a particular business or classification or body of knowledge (Sec. 1-8).

• Defines "qualified investment" as the aggregate, non duplicative eligible qualified data center costs expended by an owner, operator and colocation tenant of a qualified data center (Sec. 10).

• Specifies the qualified data center will make, on or before the 5th anniversary of the date an agreement entered into becomes effective, a qualified investment of the following (Sec. 10.B):

• $50 million if such qualified data center is located in an enterprise zone or a federal qualified opportunity zone designated pursuant to the Tax Cuts and Jobs Act of 2017; or

• $200 million if the qualified data center is not located in an enterprise zone or a federal qualified opportunity zone.

• Exempts the following from agreements (Sec. 1-2):

• Any additional building or structure at a qualified data center that is developed, acquired, constructed, rehabilitated, renovated, repaired or operated, to house a group of networked computer servers, regardless of whether any such development, acquisition, construction, rehabilitation, renovation, repair or operation was contemplated at the time of entering into the agreement;

• Any additional enterprise information technology equipment used by a qualified data center that is acquired after the date the agreement was entered into; and

• Any additional facility acquired by the owner of a qualified data center for the development, construction, rehabilitation, renovation, repair or operation of a qualified data center, after the date the agreement was entered into, provided such owner enters into a negotiated host municipality fee agreement.

• Specifies upon the termination of a negotiated host municipality fee agreement, the owner of the property on which the qualified data center is located or such owner's successors or assigns is  subject to the tax imposed under the general statutes and is liable for payment of such taxes on the property that was exempted from such tax (Sec. 1-6).

Full Bill Text