2023 - 2024 LEGISLATURE
June 1, 2023 - Introduced by Representatives Zimmerman, Wittke, Allen,
Armstrong, Binsfeld, Green, Krug, Murphy, Nedweski, O'Connor, Petryk,
Pronschinske and Rettinger, cosponsored by Senators Quinn, Bradley,
Cowles, Feyen, Nass and Wanggaard. Referred to Committee on Ways and
AB302,1,2 1An Act to create 77.54 (70) and 238.40 of the statutes; relating to: a sales and
2use tax exemption for data center equipment or software.
Analysis by the Legislative Reference Bureau
This bill creates a sales and use tax exemption for equipment or software used
at a qualified data center, as certified by the Wisconsin Economic Development
Corporation, for the processing, storage, retrieval, or communication of data.
Because this bill relates to an exemption from state or local taxes, it may be
referred to the Joint Survey Committee on Tax Exemptions for a report to be printed
as an appendix to the bill.
For further information see the state and local fiscal estimate, which will be
printed as an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB302,1 3Section 1. 77.54 (70) of the statutes is created to read:
AB302,1,64 77.54 (70) The sale of and the storage, use, or other consumption of equipment
5or software used at a qualified data center certified under s. 238.40 for the
6processing, storage, retrieval, or communication of data, including the following:
1(a) Servers, routers, connections, monitoring and security systems, and other
2enabling machinery, equipment, and hardware, including replacements, upgrades,
3component parts, and installations, regardless of whether the property is affixed to
4or incorporated into real property.
AB302,2,85 (b) Equipment used in the operation of computer equipment or software or for
6the benefit of the qualified data center, including component parts, installations,
7replacements, and upgrades, regardless of whether the property is affixed to or
8incorporated into real property.
AB302,2,139 (c) All equipment used for the transformation, distribution, or management of
10electricity that is used to operate computer server equipment, including substations,
11uninterruptible energy equipment, supplies, conduit, fuel piping and storage,
12cabling, duct banks, switches, switchboards, batteries, testing equipment, and
13backup generation equipment.
AB302,2,1814 (d) All equipment necessary to cool and maintain a controlled environment for
15the operation of computer servers and other components of the qualified data center,
16including chillers, mechanical equipment, refrigerant piping, fuel piping and
17storage, adiabatic and free cooling systems, cooling towers, water softeners, air
18handling units, indoor direct exchange units, fans, ducting, and filters.
AB302,2,2019 (e) All water conservation systems, including facilities or mechanisms that are
20designed to collect, conserve, and reuse water.
AB302,2,2221 (f) All computer server equipment, including the chassis, networking
22equipment, switches, racks, fiber-optic and copper cabling, trays, and conduit.
AB302,2,2523 (g) All conduit, ducting, and fiber-optic and copper cabling that may be located
24outside the qualified data center, directly related to connecting one or more qualified
25data center locations.
1(h) All monitoring equipment and security systems.
AB302,3,42 (i) Modular data centers and preassembled components of any item described
3in this subsection, including components used in the manufacturing of modular data
AB302,3,55 (j) All software.
AB302,3,96 (k) Other tangible and intangible personal property that is essential, as
7determined by the Wisconsin Economic Development Corporation, to the operations
8of the qualified data center, excluding property used in the administration of the
9qualified data center.
AB302,3,1010 (L) All electricity used at a qualified data center.
AB302,2 11Section 2. 238.40 of the statutes is created to read:
AB302,3,12 12238.40 Data centers. (1) Definitions. In this section:
AB302,3,2013 (a) “Eligible data center costs” means expenditures made after the effective
14date of this paragraph .... [LRB inserts date], for the development, acquisition,
15construction, renovation, expansion, replacement, or repair and the operation of a
16qualified data center in this state, including costs of equipment or software, as
17specified in s. 77.54 (70), land, buildings, site improvements, modular data centers,
18computer data center equipment acquisition and permitting, lease payments, site
19characterization and assessment, engineering, and design used at a qualified data
20center in this state.
AB302,3,2321 (b) “Qualified data center” means one or more buildings or an array of
22connected buildings owned, leased, or operated by the same business entity, as
23defined in s. 13.62 (5), or its affiliate and for which all of the following apply:
AB302,4,224 1. The buildings are rehabilitated or constructed to house a group of networked
25server computers in one physical location or multiple locations in order to centralize

1the processing, storage, management, retrieval, communication, or dissemination of
2data and information.
AB302,4,53 2. The buildings create a minimum qualified investment in this state of any of
4the following amounts within 5 years from the date on which the corporation certifies
5the data center as eligible to claim the exemption under s. 77.54 (70):
AB302,4,76 a. For buildings located in a county having a population greater than 100,000,
AB302,4,98 b. For buildings located in a county having a population greater than 50,000
9and not more than 100,000, $100,000,000.
AB302,4,1110 c. For buildings in a county having a population of not more than 50,000,
AB302,4,1312 d. For buildings located in more than one county, the amount provided under
13subd. 2. a., b., or c. for the most populous county in which the buildings are located.
AB302,4,1614 (c) “Qualified investment” means the aggregate, non-duplicative eligible data
15center costs expended at a qualified data center by an owner, operator, or tenant, or
16an affiliate of an owner, operator, or tenant, of the qualified data center.
AB302,4,20 17(2) Certification. The corporation shall certify an owner, operator, or tenant,
18or an affiliate of an owner, operator, or tenant, of a qualified data center to claim the
19sales and use tax exemption under s. 77.54 (70) in the manner prescribed by the
AB302,3 21Section 3. Effective date.
AB302,4,2322 (1) Data center exemption. This act takes effect on the first day of the 3rd
23month beginning after publication.
AB302,4,2424 (End)