Data center tax incentive threshold lowered, advanced

A bill that would provide tax incentives to companies looking to build large data centers was returned to select file Feb. 24.

Introduced by Bellevue Sen. Abbie Cornett, LB1118 originally would have offered tax exemptions to a company investing at least $300 million in qualified property for the purpose of building a data center and creating 30 or more new jobs.

Senators voted 38-1 to return the bill back to select file to consider an amendment that would lower the company’s required minimum investment from $300 million to $200 million.

“This amendment would allow the state to remain competitive without shutting the door on other potential projects,” Cornett said.

Businesses qualifying for the incentives would be eligible for an exemption of tangible personal property taxes. Exemptions for sales and use taxes, as well as real property taxes, also would be provided under the proposal.

A “callback” provision in the bill would authorize the state to reclaim property taxes, plus interest, if a company fails to meet established benchmarks.

The amendment was adopted on a 44-0 vote and senators voted to re-advance the bill from select file by a voice vote.