An Act amending the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, in Computer Data Center Equipment Incentive Program, further providing for application for certification, for eligibility requirements relating to Sales and Use Tax Refund Program and for eligibility requirements relating to Sales and Use Tax Exemption Program.

2025-2026 Regular Session Introduced by Lisa Borowski and 18 co-sponsors

The bill updates eligibility, application, and compliance rules to strengthen and clarify Pennsylvania’s computer data center equipment incentive, refund, and exemption programs.

Referred to Finance

Overview

HB 2539 (Session 2025-2026, Pennsylvania) amends the Tax Reform Code of 1971 to modify provisions related to the Computer Data Center Equipment Incentive Program as well as the Sales and Use Tax Refund and Sales and Use Tax Exemption Programs. The bill focuses on eligibility criteria, application processes, and related requirements for incentives intended to attract and support data center investment in the Commonwealth.

Purpose and intent

Strengthen and clarify the administration of incentives for computer data center equipment.

Update eligibility requirements and certification processes for programs that provide sales tax refunds or exemptions on data center equipment and associated costs.

Align program rules with current economic development goals and fiscal considerations.

Key provisions

Note: The summary below reflects typical areas covered by amendments to the Tax Reform Code in this domain. For precise language, refer to the bill's text.

Computer Data Center Equipment Incentive Program

Revisions to the process for applying for certification related to data center equipment incentives.

Possible changes to criteria that determine eligibility of projects for incentive certification.

Clarifications on the duration, scope, or amounts of incentives available for qualified data centers.

Sales and Use Tax Refund Program

Alterations to eligibility requirements for accessing sales tax refunds on eligible purchases.

Specifications on eligible equipment, project costs, and permissible use of refunded amounts.

Updates to application timelines, documentation, reporting, and compliance obligations.

Sales and Use Tax Exemption Program

Revisions to eligibility criteria for exemptions related to data center equipment.

Potential changes to the types of equipment and related purchases that qualify for exemption.

Adjustments to compliance, renewal, or expiration terms of exemptions.

Who is affected

Data center developers, operators, and owners seeking state incentives for equipment purchases.

Businesses seeking sales tax refunds or exemptions on computer data center equipment and related infrastructure.

Local economic development agencies involved in promoting and approving data center projects.

State Department or agency administering tax incentive programs (e.g., revenue, economic development).

Procedural and timeline aspects

Changes to application for certification imply potential updates to filing deadlines, supporting documentation, and review timelines.

Possible modifications to renewal or continuation requirements for incentives, refunds, or exemptions.

Compliance reporting requirements may be adjusted, including frequency and content of reports to state authorities.

Potential impacts

Clarified pathways for obtaining incentives, reducing ambiguity for applicants.

Possible expansion or restriction of eligible equipment or costs, affecting project feasibility.

Impact on state revenue due to modified refund or exemption terms; potential effects on budget planning.

Enhanced alignment between Pennsylvania’s data center incentives and broader economic development objectives.

Bill