K.S.A. § 74-50,331 — KS Code / Chapter 74 / Article 50 / Section 74-50,331
74-50,331 - Sales tax exemption for certain qualified data centers; definitions.
Status: in_force

74-50,331. Sales tax exemption for certain qualified data centers; definitions. For purposes of K.S.A. 2025 Supp. 74-50,331 through 74-50,333, and amendments thereto:

(a) "Commencement of construction" means the date that construction, reconstruction, enlargement or remodeling of a qualified data center by a qualified firm commences, as determined in the agreement required by K.S.A. 2025 Supp. 74-50,332, and amendments thereto.

(b) "Commencement of operations" means the date that the qualified firm commences operations at a qualified data center, as determined in the agreement required by K.S.A. 2025 Supp. 74-50,332, and amendments thereto.

(c) "Data center equipment" means equipment or software purchased or leased for the processing, storage, retrieval or communication of data, regardless of whether the property is or is not affixed to or incorporated into real property, including the following:

(1) Servers, routers and connections and computer equipment, monitoring and security equipment or systems;

(2) equipment used in the operation of the qualified data center, including, but not limited to, backup generators, component parts, installations, refreshments, replacements and upgrades;

(3) all equipment necessary to cool and maintain a controlled environment for the operation of the computer servers and other components of the qualified data center, including, but not limited to, 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;

(4) all water conservation systems, including facilities or mechanisms that are designed to collect, conserve and reuse water;

(5) all computer server equipment, chassis, networking equipment, switches, racks, fiber optic and copper cabling, trays and conduit;

(6) all conduit, ducting and fiber optic and copper cabling directly related to connecting one or more distributed qualified data center locations regardless of whether located inside or outside a data center;

(7) all software; and

(8) other personal property that is essential to the operations of a qualified data center, excluding such property used in the administration of the qualified data center.

(d) "Department" means the department of commerce.

(e) (1) "Eligible data center costs" means expenditures for the development, acquisition, construction and operation of a qualified data center by a qualified firm, including, but not limited to, costs of land, buildings, site improvements, data center equipment, data center equipment acquisition and permitting, lease payments, site characterization and assessment, engineering and design used directly and exclusively for a qualified data center.

(2) "Eligible data center costs" does not include the cost of electricity.

(f) "New jobs" means newly created jobs with a qualified firm at a qualified data center or directly associated with a qualified data center filled by Kansas residents and the primary work locations of such jobs are in Kansas.

(g) "Qualified data center" means one or more buildings that are constructed, reconstructed, enlarged, remodeled or leased to house a group of networked computer servers in this state to centralize the storage, management and dissemination of data and information pertaining to a particular business, taxonomy or body of knowledge and such buildings are connected to each other by fiber and associated equipment required for operating a fiber transmission network between data center buildings and internet points for the purpose of providing redundancy and resiliency for the data center services provided in each building.

(h) "Qualified firm" means a business or an affiliate thereof that is registered with the secretary of state and is engaged in the development, operation or leasing of a qualified data center. "Qualified firm" does not include a telecommunications carrier or local exchange carrier as defined in K.S.A. 66-1,187, and amendments thereto, electing carrier as defined in K.S.A. 66-2005(x), and amendments thereto, wireless services provider as defined in K.S.A. 66-2019, and amendments thereto, or video service provider as defined in K.S.A. 12-2022, and amendments thereto.

(i) "Secretary" means the secretary of commerce.