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Bill

SB 98

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.

2025-2026 Regular Session Introduced by Tim Shallenburger

Kansas exempts qualified data centers investing $250M+ from sales taxes on construction, equipment, and labor to attract major tech infrastructure and create high-wage jobs.

Rep. Sean Tarwater, Rep. Adam Turk, and Rep. Stephanie Sawyer Clayton are appointed to replace Rep. Shannon Francis, Rep. Robyn R. Essex, and Rep. Henry Helgerson on the Conference Committee
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WeVote Research Nonpartisan
Bill Summary · SB 98

Legislative bill overview

SB 98 provides a sales tax exemption for large data center construction, equipment purchases, and related labor costs in Kansas for companies committing to a minimum $250 million investment. The bill requires qualifying firms to meet specified job creation targets and other performance requirements to access the tax incentives.

Why is this important

Data centers represent significant capital investments that generate ongoing tax revenue and high-paying jobs. States compete aggressively for these facilities, making tax incentives a strategic economic development tool. Kansas is positioning itself to attract major technology and cloud computing infrastructure projects that could create hundreds of jobs and anchor regional economic growth.

Potential points of contention

  • Tax revenue cost: The exemption represents foregone state sales tax revenue on potentially hundreds of millions in construction and equipment purchases, with uncertain payback timelines and actual job creation levels
  • Investment threshold selectivity: The $250 million minimum creates a program benefiting only the largest operators, raising fairness questions about whether smaller Kansas businesses receive comparable incentives
  • Job requirement enforcement: The bill's job creation commitments and "other requirements" lack transparent public metrics for measuring whether companies actually deliver promised employment and wage standards long-term

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

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