Data center tax incentive approved

A bill that provides tax incentives to companies looking to build large data centers was passed by the Legislature March 1.

Introduced by Bellevue Sen. Abbie Cornett, LB1118 offers tax incentives to a company investing at least $200 million in qualified property for the purpose of building a data center and creating 30 or more new jobs.

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

The bill authorizes the state to reclaim property taxes, plus interest, if a company fails to meet established benchmarks.

Senators passed the bill on a 48-0 vote.