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HB 2532

An Act amending the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, repealing provisions relating to computer data center equipment incentive program; in general provisions, providing for transfer of tax from certain sale of computer data equipment; and establishing a restricted account in the Motor License Fund.

2025-2026 Regular Session Introduced by Scott Barger and 6 co-sponsors

HB 2532 repeals the computer data center incentive program and redirects tax revenue from data equipment sales into a restricted Motor License Fund for transportation funding.

Referred to Finance
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WeVote Research Nonpartisan
Bill Summary · HB 2532

Summary of HB 2532 (Session 2025-2026) – Pennsylvania

Purpose and intent

HB 2532 amends the Tax Reform Code of 1971 by repealing provisions related to the computer data center equipment incentive program. It also introduces changes to how certain tax proceeds are handled and establishes a restricted account within the Motor License Fund. The bill appears to aim at modifying incentives tied to computer data center equipment and redirecting or isolating related revenues for transportation funding purposes.

Key provisions and changes

  • Repeal of data center incentive program provisions

    • The bill repeals existing provisions in the Tax Reform Code of 1971 that create or govern incentives for computer data center equipment. This means future eligibility, administration, and funding mechanisms tied to the data center equipment incentive program would no longer apply.

  • Transfer of tax from certain sales of computer data equipment

    • HB 2532 adds or modifies provisions to transfer tax revenue collected from the sale of computer data equipment. The specifics (e.g., which taxes, rates, thresholds, or allocation rules) would be defined in the text to designate how revenue from these sales is redirected or redistributed compared to the current framework.

  • Establishment of a restricted account in the Motor License Fund

    • The bill creates a restricted account within the Motor License Fund. This typically implies that a portion of funds—potentially derived from the sales tax on computer data equipment or related sources—would be deposited into a separate, clearly earmarked sub-account with use restrictions. The intended use would be tied to transportation funding or related motor-vehicle program needs, as defined by the statute.

Who is affected

  • ** taxpayers and purchasers of computer data equipment**

    • If the tax treatment or allocation of revenues from the sale of computer data equipment changes, consumers and businesses purchasing such equipment could experience changes in tax handling, reporting, or cost implications (depending on how the transfer provisions are implemented).

  • ** state and local budgetary mechanisms**

    • Revenue previously allocated under the computer data center incentive framework would be removed or redirected. The creation of a restricted Motor License Fund account indicates a potential reallocation toward transportation or motor vehicle-related funding needs. Agencies that administer the Tax Reform Code and the Motor License Fund would implement new reporting and compliance requirements.

  • ** economic development and data center industry**

    • By repealing the data center incentive program, incentives designed to attract or retain data center investment may be eliminated. Prospective investments, location decisions, or expansions could be affected depending on whether those incentives were a material factor for developers and businesses.

Procedural and timeline aspects

  • Legislative process status (as of bill introduction)

    • HB 2532 has been introduced with the listed sponsors and co-sponsors, including Rob Kauffman; Chad Reichard; Jamie Walsh; Scott Barger; Charity Krupa; and Brenda Pugh, among others. The bill would proceed through the Pennsylvania General Assembly's standard committees (likely Urban Affairs, Finance, or Commerce) for consideration, amendments, and potential passage.

  • Effective date and transition

    • The specific effective date, transition provisions, and any sunset or phasing details would be stated in the bill text. Typically, tax code amendments specify effective dates (e.g., immediate upon enactment or a later date) and any transitional rules for ongoing incentives or existing contracts.

Potential impact considerations

  • Revenue effects: Repeal of the data center incentive program may reduce or remove targeted incentives, potentially affecting state economic development objectives tied to data centers. Redirecting tax proceeds from computer data equipment sales into a restricted Motor License Fund account could increase transportation funding stability or earmark funds for infrastructure, depending on the amount and balance of redirected revenue.

  • Administrative burden: Tax administrators and businesses may face new compliance and reporting requirements related to the transfer provisions and the restricted account, necessitating updated guidance and forms.

  • Policy trade-offs: The bill trades a targeted incentive program for changes in revenue allocation, prioritizing transportation funding. Stakeholders may weigh the benefits to infrastructure against potential impacts on business incentives for data center growth.

If you’d like, I can pull the exact text of HB 2532 and provide a line-by-line mapping of provisions, fiscal notes, and committee actions.

Compiled from official sources — confirm details with the bill’s official record.

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