House Bill 26-1030 Introduced

LLS NO. 26-0134.03 Rebecca Bayetti x4348
Second Regular Session
Seventy-fifth General Assembly
State of Colorado

House Sponsorship

Valdez and Duran,

Senate Sponsorship

Mullica,

House Committees

Energy & Environment

Senate Committees

No committees scheduled.

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A Bill for an Act

Bill Summary

(Note: This summary applies to this bill as introduced and does not reflect any amendments that may be subsequently adopted. If this bill passes third reading in the house of introduction, a bill summary that applies to the reengrossed version of this bill will be available at http://leg.colorado.gov.)

The bill creates the data center development and incentive program (program) operated by the Colorado data center development authority (authority), which is newly created in the Colorado office of economic development (office) (section 1 of the bill). The authority consists of 9 members, as follows:

To incentivize efficient data center development, the program allows a 100% state sales and use tax exemption on qualified purchases to the operator of a certified data center. To be eligible for certification, the operator of the data center, or a data center operator collectively with participating data center tenants, must:

To obtain certification, a data center operator must apply to the authority in a form and manner to be determined by the authority. The authority is required to review a data center operator's application for certification and may award certification to a data center operator that has demonstrated that it will satisfy the certification criteria (section 1).

A data center operator that obtains certification for a data center project is eligible for a 100% state sales and use tax exemption on the purchase and use of qualified data center infrastructure and systems for 20 years from the date that the data center project was certified, so long as the data center satisfies ongoing post-certification requirements and submits annual compliance reports to the authority. As long as the data center meets post-certification requirements as demonstrated in the annual compliance reports, a data center operator of a certified data center may apply to the authority for an extension of the sales and use tax exemption for an additional 10 years. If the authority determines that a data center operator is not fulfilling its obligations and commitments to retain certification, the authority may revoke the certification and the data center operator is required to repay the state for the sales and use tax benefits that it received (sections 1 and 5). The exemption for a certified data center does not apply to local sales and use taxes unless the exemption is expressly included at the time of adoption or amendment of the local sales tax ordinance or resolution (section 4).

The bill allows a utility regulated by the public utilities commission (commission) to submit a targeted resource acquisition application to the commission to propose methods of meeting emerging large-load customer needs. The bill also specifies how a utility may finance resource and infrastructure needs in connection with emerging large-load customers (section 3).