Qualified Data Center Sales Tax Exemption (Senate Bill 98, 2025)

two-reviewer statute enacted ks-sb98-datacenter-sales-tax-exemption

Record created 2026-08-19, last updated 2026-08-19. Snapshot built September 14, 2026. JSON

State

KS

Kind

statute

Status

enacted

Agency

Kansas Department of Commerce (certification); Kansas Department of Revenue (exemption administration)

Citation

L. 2025, ch. 124 (Senate Bill 98, 2025 Kansas Legislature); New Secs. 1-3 codified at K.S.A. 2025 Supp. 74-50,331 through 74-50,333 (ch. 124, §§ 1-3); § 6 amends K.S.A. 79-3606 by adding the data-center exemption subsection, which the Revisor's current text still designates with the placeholder "(xxxx)"; § 5 amends K.S.A. 2024 Supp. 66-101j

Effective

2025-07-01

Mandatory

$99 Kansas pass

Summary

$99 Kansas pass

Exit terms

$99 Kansas pass

Generation requirements

$99 Kansas pass

Cost allocation

$99 Kansas pass

Locked fields

$99 Kansas pass 5 recorded fields on this record are in the state and all-states passes.

• Senate Bill No. 98 (2025 Kansas Legislature), Enrolled statute two-reviewer

  “A qualified firm that makes an investment in eligible data center costs in a qualified data center of at least $250,000,000 in the aggregate by the fifth year of operations and creates and maintains at least 20 new jobs at the qualified data center within two calendar years after the commencement of operations shall receive a sales tax exemption... New Sec. 3. (a) On and after July 1, 2025, a qualified firm that meets the requirements of section 2, and amendments thereto, may be eligible for a sales tax exemption as provided by this section and the provisions of K.S.A. 79-3606(xxxx), and amendments thereto. (b) The sales tax exemption shall be valid for 20 years after the date of commencement of operations.”

  pp.2-4: New Sec. 2(a)-(b) (investment/jobs thresholds), New Sec. 3(a)-(b) (effective date, 20-year exemption term)
  https://www.kslegislature.gov/b2025_26/bills/download/?apn=b2025_26%2Fyear1%2Fready_for_publication%2Fsb_98%2Fsb98_enrolled.pdf
  Primary enrolled-bill text from the Kansas Legislature's own bill-tracking site (kslegislature.gov); downloaded directly (PDF, 41 pages) and text-extracted. The new K.S.A. 79-3606 subsection's letter designation appears in this enrolled-bill text only as a placeholder '(xxxx)' -- KDOR's Notice 25-03 (below), issued after enactment, still uses the same '(xxxx)' placeholder, so the final statute-book subsection letter is not confirmed by either source reviewed here. The enrolled-bill PDF's signature-block page (last page) has blank governor-approval/passage-date lines in the extracted text (a scan/template artifact); the commonly reported April 24, 2025 gubernatorial approval date was NOT independently confirmed against this document's text layer and is therefore not asserted as a sourced fact in the instrument row.

• Senate Bill No. 98 (2025 Kansas Legislature), Enrolled -- New Sec. 2(b)(3)-(5): construction window, 10-year power purchase, water commitments statute two-reviewer

  “(3) commit to begin construction of the project within 10 years of the date of the agreement with the secretary or on such earlier date as specified in the agreement pursuant to paragraph (6); (4) commit to purchase electricity for 10 years from the public utility that is certified to provide retail electric service in the territory where the qualified data center is located; (5) commit to undertake practices that will conserve, reuse and replace water, including, but not limited to: (A) Using water efficient fixtures and practices;”

  p.2 of the enrolled bill (New Sec. 2(b)(3), (4) and (5)(A))
  https://www.kslegislature.gov/b2025_26/bills/download/?apn=b2025_26%2Fyear1%2Fready_for_publication%2Fsb_98%2Fsb98_enrolled.pdf
  [KS GATE 2026-08-20] Added by verifier: the instrument's generation_requirements and the summary's 10-year construction window were UNSOURCED fields at gate open (VA-gate D5 class) -- the words appeared in no quote anywhere in the KS corpus. The collector's pinpoints for both, New Sec. 2(b)(4) and 2(b)(5), are exactly right; only the evidence row was missing. The water-conservation list continues through (B)-(F) (rainwater harvesting, recirculation/recycling before discharge, partnering to reuse discharged water, reclaimed water, watershed restoration).

• Senate Bill No. 98 (2025 Kansas Legislature), Enrolled -- New Sec. 2(c): breach, 120-day cure, repayment/termination/suspension statute two-reviewer

  “(c) If it is determined by the secretary that the qualified firm has breached a term or condition of the agreement, the secretary shall provide written notice to the qualified firm as to which terms or conditions were breached and allow the qualified firm 120 days to cure the breached terms or conditions. If the breached terms or conditions have not been cured within such time, the secretary may require the qualified firm to repay all or a part of the amount of the sales tax exemption received, terminate the sales tax exemption or suspend all or a part of the sales tax exemption until the breach is cured.”

  p.3 of the enrolled bill (New Sec. 2(c))
  https://www.kslegislature.gov/b2025_26/bills/download/?apn=b2025_26%2Fyear1%2Fready_for_publication%2Fsb_98%2Fsb98_enrolled.pdf
  [KS GATE 2026-08-20] Added by verifier: the instrument's exit_terms were an unsourced field. Text confirmed identical in the codified section, K.S.A. 2025 Supp. 74-50,332(c).

• Senate Bill No. 98 (2025 Kansas Legislature), Enrolled -- New Sec. 4: fusion center oversight board approval prerequisite statute two-reviewer

  $99 Kansas pass quote, 808 characters as extracted. The document, the pinpoint and the review state are open below.

  p.4 of the enrolled bill (New Sec. 4(a)-(b))
  https://www.kslegislature.gov/b2025_26/bills/download/?apn=b2025_26%2Fyear1%2Fready_for_publication%2Fsb_98%2Fsb98_enrolled.pdf

• K.S.A. 79-3606 (Kansas Retailers' Sales Tax; exemptions), Revisor of Statutes current text -- data center subsection and enactment history statute two-reviewer

  $99 Kansas pass quote, 460 characters as extracted. The document, the pinpoint and the review state are open below.

  subsection "(xxxx)"; History line
  https://www.kslegislature.gov/li/b2025_26/statute/079_000_0000_chapter/079_036_0000_article/079_036_0006_section/079_036_0006_k/

• K.S.A. 2025 Supp. 74-50,331 -- Sales tax exemption for certain qualified data centers; definitions (codification of SB 98 New Sec. 1) statute two-reviewer

  $99 Kansas pass quote, 123 characters as extracted. The document, the pinpoint and the review state are open below.

  section heading; History line
  https://www.kslegislature.gov/li/b2025_26/statute/074_000_0000_chapter/074_050_0000_article/074_050_0331_section/074_050_0331_k/

• K.S.A. 2025 Supp. 74-50,333 -- Length of time for exemption; revocation, suspension or modification (codification of SB 98 New Sec. 3) statute two-reviewer

  $99 Kansas pass quote, 171 characters as extracted. The document, the pinpoint and the review state are open below.

  section heading; History line
  https://www.kslegislature.gov/li/b2025_26/statute/074_000_0000_chapter/074_050_0000_article/074_050_0333_section/074_050_0333_k/

• Kansas Department of Revenue, Notice 25-03: Sales Tax Exemption for Data Centers government two-reviewer

  $99 Kansas pass quote, 691 characters as extracted. The document, the pinpoint and the review state are open below.

  p.1 (Sections 1-4 summary), p.2 (Section 5-6 summary, effective-date paragraph)
  https://www.ksrevenue.gov/taxnotices/notice25-03.pdf

• SB 98 Data Center Sales Tax Exemption, Kansas Department of Commerce government two-reviewer

  $99 Kansas pass quote, 378 characters as extracted. The document, the pinpoint and the review state are open below.

  'Eligibility Requirements' and program-summary text
  https://www.kansascommerce.gov/program/business-incentives-and-services/sb-98-data-center-sales-tax-exemption/

• Kansas Legislature bill-status record for SB 98 (kslegislature.gov li/api/v11 bill_status endpoint) government two-reviewer

  $99 Kansas pass quote, 48 characters as extracted. The document, the pinpoint and the review state are open below.

  HISTORY[0], action_code gov_mg_150, Senate journal p.1300
  https://www.kslegislature.gov/li/api/v11/rev-1/bill_status/sb98/

• Project Bluestem

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