To qualify as a computer data center, a facility must have backup or uninterruptible power, sophisticated fire-suppression systems, enhanced physical security, and at least 100,000 square feet of combined space; an eligible center generally must also have at least 20,000 square feet dedicated to working servers. facility requirements

The rural tax preference is limited to data centers located in qualifying rural counties, while the nonrural pilot is limited to qualifying businesses located in counties with populations over 800,000 under the April 1, 2021, population estimates. county eligibility

A nonrural pilot applicant must demonstrate that at least 1.5 megawatts of power is available for customers and provide supporting records, including requests for proposals, pricing, and marketing materials. minimum of 1.5 megawatts

Businesses and tenants must apply to the Department of Revenue for an exemption certificate before qualifying purchases, and certificates are generally issued on a first-in-time basis. Certificates expire two years after issuance unless construction has begun, and purchases made before issuance do not qualify. exemption certificate

The number and timing of nonrural pilot certificates are capped: the Department of Revenue may approve six applications in the first calendar year and six applications in each of calendar years three through six; no new certificates may be issued after July 1, 2028. Six applications

A qualifying tenant in the nonrural pilot must contract for at least 150 kilowatts of electrical capacity for server and computer equipment; tenants that previously qualified under the existing data-center exemptions must reapply if they expand into a qualifying business. minimum electrical capacity of 150 kilowatts

Within six years after receiving a certificate, the business or tenant must create the required number of new family-wage jobs tied to newly dedicated server space and must maintain those jobs while the certificate remains valid. The jobs generally require full-time work, pay at least 125 percent of county per-capita personal income, and provide employer-paid health insurance. net employment

A newly constructed data center receiving a post-effective-date certificate must obtain certification under an approved sustainable-design or green-building standard within three years after being placed in service, such as Energy Star, LEED, BREEAM, Envision, ISO 50001, Green Globes, or UL 3223. sustainable design or green building standards

For new construction work at a data center claiming the exemption, the prime contractor and subcontractors must use community workforce agreements or project labor agreements and comply with area-standard prevailing wages and apprenticeship-utilization requirements. community workforce agreements or project labor agreements

Businesses and tenants claiming the exemption must file annual tax-performance reports identifying construction firms and employment levels used for constructing, renovating, refurbishing, or remodeling the data center. annual tax performance report

Failure to meet the employment requirements can cancel the exemption certificate and make previously exempted sales and use taxes immediately due, although the Department of Revenue may grant exceptions or extensions for circumstances beyond the business's control, including recessions, pandemics, or natural disasters. previously exempted sales and use taxes

Failure to meet the sustainable-design certification requirement can cancel the certificate, require repayment of previously exempted taxes, and impose an additional 10 percent penalty, subject to possible exceptions or extensions for circumstances beyond the business's control. additional 10 percent penalty

The nonrural pilot excludes movable or fixed stand-alone prefabricated or modular units, including intermodal shipping containers, from the definition of an eligible computer data center. do not qualify as eligible computer data centers

The tax exemption is restricted to specified server equipment, power infrastructure, and installation services; eligible power infrastructure does not include substations, and server equipment must be installed without intervening use. does not include substations

The nonrural pilot expires July 1, 2038, and its use-tax counterpart expires July 1, 2043; the exemption does not apply to qualifying equipment or infrastructure first used on or after July 1, 2038. expires July 1, 2038

Rural data centers can receive a sales tax exemption for eligible server equipment installed without intervening use, related installation labor and services, and eligible power infrastructure such as generators, wiring, batteries, and electrical distribution equipment. The exemption applies to server equipment and power infrastructure

The corresponding rural use-tax exemption applies to the use of eligible server equipment and power infrastructure, including related installation, repair, alteration, and improvement services. This exemption also applies to eligible power infrastructure

The rural program is extended to refurbishment of existing data centers, including facilities that were previously ineligible, and allows qualifying replacement server equipment to receive the exemption. Refurbishment must substantially improve or modernize servers, server space, ventilation, or power infrastructure, and the program limits new refurbishment certificates to six per calendar year. Refurbishment includes substantial improvements to an eligible computer data center

The rural data-center tax exemptions are available for qualifying facilities whose construction begins before July 1, 2035, with the sales-tax exemption expiring July 1, 2048 and the use-tax exemption expiring July 1, 2053. No new exemption certificates may be issued on or after July 1, 2036

A five-year pilot provides sales- and use-tax exemptions for eligible data centers in counties with populations over 800,000, covering server equipment, installation labor and services, and eligible power infrastructure. New certificates cannot be issued after July 1, 2028, and the exemptions expire July 1, 2038. A qualifying business must be located in a county with a population over 800,000

The nonrural pilot requires the qualifying business to demonstrate at least 1.5 megawatts of available customer power, supporting development of qualifying facilities with available electrical capacity. The qualifying business must demonstrate that it has a minimum of 1.5 megawatts of available power

The nonrural pilot authorizes up to six qualifying-business applications in its first calendar year and up to six applications in each of calendar years three through six, processed on a first-in-time basis. The department is authorized to approve six applications

For post-enactment exemption certificates, the required family-wage threshold is reduced to 125 percent of county per-capita personal income, and qualifying employment may include necessary contractor work such as security and building maintenance. This makes it easier for a qualifying data center to satisfy the employment requirement. Family wage employment positions are new permanent employment positions

Businesses and tenants may transfer an exemption certificate with the Department of Revenue's consent in specified corporate transactions, including transfers to controlled affiliates, acquisitions of substantially all assets or stock, and mergers or consolidations. The department must allow certificate transfers

The exemption is limited to qualifying businesses or tenants with a Department of Revenue exemption certificate; the application must establish eligibility, and purchases made before the certificate’s issuance date do not qualify for refunds.

Exemption certificates generally expire two years after issuance unless construction has commenced.

Urban-county applications are subject to statutory limits: the Department may approve only six qualifying-business applications in the first calendar year and six applications in each of calendar years three through six, on a first-in-time basis.

No new urban data-center exemption certificates may be issued on or after July 1, 2028.

No new rural exemption certificates may be issued on or after July 1, 2036, and rural data centers qualifying through refurbishment cannot receive new certificates on or after July 1, 2026.

A qualifying urban business must be located in a county with a population over 800,000 and must document at least 1.5 megawatts of available power, including requested supporting proposals, pricing, and marketing materials.

An urban qualifying tenant must contract for at least 150 kilowatts of electrical capacity for server and computer equipment, and a tenant previously qualifying under the rural program must reapply if it expands into a qualifying business.

An eligible data center must dedicate at least 20,000 square feet to housing working servers; the overall computer-data-center facility must have at least 100,000 square feet and must have backup or uninterruptible power, sophisticated fire protection, and enhanced physical security.

Movable, stand-alone, prefabricated, or modular units, including intermodal shipping containers, do not qualify as eligible computer data centers.

Rural eligibility is restricted by location and construction timing: the center must be in a rural county and construction must fall within one of three statutory windows, the latest ending before July 1, 2035.

Eligible server equipment must be installed without intervening use and must meet detailed original- or replacement-equipment timing rules; equipment installed in movable or modular units is excluded.

Qualifying businesses and tenants must increase net employment within six years and maintain the required positions while the certificate is valid: generally 35 family-wage positions or, if lower, three positions per 20,000 square feet of newly dedicated server space.

Family-wage positions must generally be full-time or equivalent, pay at least 125 percent of county per-capita personal income for certificates issued on or after June 9, 2022, and include employer-provided health insurance.

A newly constructed data center must obtain certification under an approved sustainable-design or green-building standard within three years after being placed in service.

Failure to satisfy the employment requirements can cancel the exemption and make previously exempted sales and use taxes immediately due; failure to satisfy the green-building requirement can also trigger an additional 10 percent penalty, subject to limited exceptions or extensions for circumstances beyond the taxpayer’s control.

Claimants must file an annual tax-performance report identifying construction firms and employment levels, and urban claimants must claim the exemption in the tax year when the tax would otherwise be due unless the Department grants an extension.

Certificate holders may not assign or transfer a certificate without the Department’s prior written consent; permitted transfers are limited to specified related-party, substantially-all-asset, or merger transactions.

For new construction covered by the 2022 measure, the qualifying business or tenant must certify that construction uses community workforce or project labor agreements, area-standard prevailing wages, and apprenticeship-utilization requirements.

Provides a retail sales-tax exemption for qualifying businesses and tenants purchasing eligible server equipment, including installation labor and services, for an eligible computer data center.

Provides a use-tax exemption for qualifying businesses and tenants using eligible server equipment, including installation labor and services, when the required sales-tax exemption certificate has been issued.

Extends the sales- and use-tax exemptions to eligible power infrastructure and related labor and services, including generators, wiring, cogeneration equipment, electrical switches, batteries, and distribution, testing, and monitoring equipment; substations are excluded.

Continues the rural data-center exemption for eligible facilities in rural counties with at least 20,000 square feet dedicated to working servers, including qualifying expansions, renovations, and refurbishments that commence construction before July 1, 2035.

Allows qualifying rural data centers to receive exemptions for certain replacement server equipment, subject to different installation deadlines based on the applicable construction window.

Allows up to six rural data centers per calendar year to qualify through refurbishment, on a first-in-time basis, with each qualifying business limited to one refurbished-data-center certificate per year; no new refurbishment certificates may be issued on or after July 1, 2026.

Creates a sales- and use-tax exemption pilot program for data centers in counties with populations over 800,000, including King, Pierce, and Snohomish counties, for eligible server equipment, installation services, and eligible power infrastructure.

For the urban-county pilot, authorizes up to six qualifying-business applications in the first calendar year and six applications in each of calendar years three through six, awarded on a first-in-time basis; no new exemption certificates may be issued on or after July 1, 2028.

For the urban-county pilot, permits a qualifying business to demonstrate eligibility by showing at least 1.5 megawatts of available power for customers and requires a qualifying tenant to contract for at least 150 kilowatts of electrical capacity for server and computer equipment.

Makes exemption certificates effective on the date the department receives the application, so qualifying purchases made on or after that date can receive the exemption; certificates generally last two years unless construction has commenced.

Allows an exemption certificate to be transferred with prior written department approval to a qualified related entity, an entity acquiring substantially all of the certificate holder's stock or assets, or a merger or consolidation successor, provided the transferee accepts and performs the certificate's terms.

Permits existing employment at an otherwise ineligible facility that later qualifies, or at a previously qualifying facility undergoing refurbishment, to count toward the required family-wage employment increase if the positions meet the wage and health-insurance requirements.

Permits owners to count qualifying-tenant jobs and certain contractor jobs toward employment requirements, and permits tenants to count an allocated share of qualifying owner and contractor jobs based on the tenant's percentage of facility space.

Requires tax repayment for missed employment requirements to be calculated in proportion to the period of noncompliance and allows the department to grant exceptions or extensions when noncompliance results from circumstances beyond the business's control, including a recession, pandemic, or natural disaster.

Defines eligible server equipment broadly enough to include computer software necessary to operate server hardware and equipment used for electronic data storage and data-management services, including cloud services, data backup, processing power, enterprise applications, websites, email, web browsing, media applications, and other online services.

Allows qualifying data centers and tenants to claim the urban-county exemption for original server equipment and certain replacement equipment installed within specified statutory periods, including replacement equipment at refurbished facilities that previously did not qualify.

Sets the rural retail sales-tax exemption to expire July 1, 2048, the related rural use-tax exemption to expire July 1, 2053, and the urban retail sales-tax exemption to expire July 1, 2038, with the related urban use-tax exemption expiring July 1, 2043.