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Minutes for SB51 - Committee on Commerce
Short Title
Providing a sales tax exemption for the construction or remodeling of a qualified data center in Kansas and the purchase of data center equipment, eligible data center costs and certain labor costs to qualified firms that commit to a minimum investment of at least $250,000,000 and meet new Kansas jobs and other requirements.
Minutes Content for Thu, Jan 30, 2025
Chairman Alley opened the hearing on SB 51.
Staff provided an overview of the bill. (Attachment 15)
Proponents:
Brad Smoot, on behalf of NetChoice, appeared as a proponent. (Attachment 1) The bill would provide a sales tax exemption to qualified firms that commit to a minimum investment of at least $250,000,000 and meet new Kansas jobs requirements and other conditions. Attached to Mr. Smoot 's testimony is Steve DelBianco, President and CEO, NetChoice written information.
Bob Johnson, Shareholder, Polsinelli PC, spoke in support of the bill.(Attachment 2) Mr. Johnson stated without the bill, it is exceedingly unlikely there will be significant data center development in Kansas, and the sales tax that is exempted by this statute would not otherwise materialize.The benefits of passing the bill into law will be profound and lasting for the Kansas economy for decades to come.
Brad Hardin, President Diode Ventures, LLC, appeared in support of the bill. (Attachment 3) By voting in favor of the bill, the committee has the opportunity to leave a legacy of innovation, economic growth and a generational investment in our communities.
Chad Tenpenny, General Counsel, Geiger Ready-Mix, Inc.spoke in support of the bill. (Attachment 4) Mr. Tenpenny urged the committee to support the bill, as it not only will help build out the Kansas economy, it will also help Kansans with the opportunity to enjoy good paying and rewarding careers.
Kara Lowe, CEO, KS Tech Council, stood in support of the bill. (Attachment 5) Ms. Lowe stated by passing the bill will ensure that Kansas remains at the forefront of technological innovation and economic growth.
Kimberly Gencur Svaty, on behalf of the Advanced Power Alliance, spoke in support on the bill. (Attachment 6) The data center economy is happening, and other states are capturing the benefit. Kansas can seed data centers in rural and urban parts of Kansas which drives significant community investment without major new investment in local schools, roads and housing.
Written testimony was received in support of the bill:
Rachel Willis, Director of Legislative Affairs, Kansas Department of Commerce (Attachment 7)
Laura Lutz, Director of Government Affairs/Kansas, Evergy (Attachment 8)
Tim Holverson, President, De Soto Economic Development Council (Attachment 9)
Greg Kindel, President, Wyandotte Economic Development Council (Attachment 10)
Natalie Bright, Executive Director, Kansas Economic Development Alliance (KEDA) (Attachment 11)
Reagan McCloud, Director of Government Affairs, Greater Topeka Chamber (Attachment 12)
Juliet Abdel, MS, IOM, President, SV Government Affairs, Greater Topeka Chamber (Attachment13)
Opponent (written only)
Tanner Tempel, Deputy State Director, Americans for Prosperity Kansas (AFPKS) (Attachment 14)
Chairman Alley closed the hearing on SB 51.
The next meeting is February 4, 2025. The meeting was adjourned at 2:29 pm.
