2023 - 2024 LEGISLATURE
ASSEMBLY SUBSTITUTE AMENDMENT 1,
TO ASSEMBLY BILL 302
June 21, 2023 - Offered by Representative Zimmerman.
AB302-ASA1,1,5 1An Act to renumber and amend 238.08; to amend 71.78 (4) (m) and 71.78 (5);
2and to create 77.54 (70), 238.08 (2) and 238.40 of the statutes; relating to: a
3sales and use tax exemption for data center equipment and materials and
4information sharing between the Department of Revenue and the Wisconsin
5Economic Development Corporation.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB302-ASA1,1 6Section 1. 71.78 (4) (m) of the statutes is amended to read:
AB302-ASA1,1,127 71.78 (4) (m) The chief executive officer of the Wisconsin Economic
8Development Corporation and employees of the corporation to the extent necessary
9to administer the development zone program tax benefit programs under subch. II
10of
ch. 238, including review of tax credit applications, compliance with tax credit
11certifications, and confirming the amount of tax credits used for purposes of revoking
12tax credits
.
AB302-ASA1,2
1Section 2. 71.78 (5) of the statutes is amended to read:
AB302-ASA1,2,62 71.78 (5) Agreement with department. Copies of returns and claims specified
3in sub. (1) and related schedules, exhibits, writings or audit reports shall not be
4furnished to the persons listed under sub. (4), except persons under sub. (4) (e), (k),
5(m), (n), (o) and (q) or under an agreement between the department of revenue and
6another agency of government.
AB302-ASA1,3 7Section 3 . 77.54 (70) of the statutes is created to read:
AB302-ASA1,2,198 77.54 (70) (a) The sales price from the sale of and the storage, use, or other
9consumption of tangible personal property, regardless of whether the property is
10affixed to or incorporated into real property, and property under s. 77.52 (1) (c), used
11exclusively for the development, construction, renovation, expansion, replacement,
12repair, or operation of a qualified data center, as defined in s. 238.40 (1) (b), including
13computer server equipment and the chassis for such equipment; networking
14equipment; switches; racks; fiber-optic cabling, copper cabling, and other cabling,
15including cabling used to connect one or more qualified data centers; trays; conduit;
16substations; uninterruptible energy equipment; supplies; fuel piping and storage;
17duct banks; switches; switchboards; batteries; testing equipment; backup
18generation equipment; modular data centers and preassembled components;
19monitoring equipment; and security systems.
AB302-ASA1,3,220 (b) The sales price from the sales of and the storage, use, or other consumption
21of tangible personal property or property under s. 77.52 (1) (c) used in the
22development, construction, renovation, expansion, replacement, or repair of a water
23cooling or conservation system used exclusively to cool or conserve water for one or
24more qualified data centers, as defined in s. 238.40 (1) (b), including chillers,
25mechanical equipment, refrigerant piping, fuel piping and storage, adiabatic and

1free cooling systems, cooling towers, water softeners, air handling units, indoor
2direct exchange units, fans, ducting, and filters.
AB302-ASA1,3,83 (c) The sales price from the sale of and the storage, use, or other consumption
4of tangible personal property or property under s. 77.52 (1) (c) sold to a construction
5contractor that, in fulfillment of a real property construction activity, transfers the
6tangible personal property or property under s. 77.52 (1) (c) to a qualified data center,
7as defined in s. 238.40 (1) (b), if such tangible personal property or property under
8s. 77.52 (1) (c) becomes a component of the qualified data center.
AB302-ASA1,3,109 (d) The sales price from the sale of electricity used at a qualified data center,
10as defined in s. 238.40 (1) (b).
AB302-ASA1,4 11Section 4. 238.08 of the statutes is renumbered 238.08 (intro.) and amended
12to read:
AB302-ASA1,3,15 13238.08 Records of the corporation. (intro.) All records of the corporation
14are open to the public as provided in s. 19.35 (1) except those records relating to
15pending the following:
AB302-ASA1,3,18 16(1) Pending grants, loans, or economic development projects that, in the
17opinion of the corporation, must remain confidential to protect the competitive
18nature of the grant, loan, or project.
AB302-ASA1,5 19Section 5. 238.08 (2) of the statutes is created to read:
AB302-ASA1,3,2120 238.08 (2) Confidential tax information received from the department of
21revenue under s. 71.78.
AB302-ASA1,6 22Section 6 . 238.40 of the statutes is created to read:
AB302-ASA1,3,23 23238.40 Data centers. (1) Definitions. In this section:
AB302-ASA1,4,624 (a) “Eligible data center costs” means expenditures made after the effective
25date of this paragraph .... [LRB inserts date], for the development, acquisition,

1construction, renovation, expansion, replacement, or repair and the operation of a
2qualified data center in this state, including costs of tangible personal property and
3property under s. 77.52 (1) (c), as specified in s. 77.54 (70), land, buildings, site
4improvements, modular data centers, computer data center equipment acquisition
5and permitting, lease payments, site characterization and assessment, engineering,
6and design used at a qualified data center in this state.
AB302-ASA1,4,97 (b) “Qualified data center” means one or more buildings or an array of
8connected buildings owned, leased, or operated by the same business entity, as
9defined in s. 13.62 (5), or its affiliate and for which all of the following apply:
AB302-ASA1,4,1310 1. The buildings are rehabilitated or constructed to house a group of networked
11server computers in one physical location or multiple locations in order to centralize
12the processing, storage, management, retrieval, communication, or dissemination of
13data and information.
AB302-ASA1,4,1614 2. The buildings create a minimum qualified investment in this state of any of
15the following amounts within 5 years from the date on which the corporation certifies
16the data center as eligible to claim the exemption under s. 77.54 (70):
AB302-ASA1,4,1817 a. For buildings located in a county having a population greater than 100,000,
18$150,000,000.
AB302-ASA1,4,2019 b. For buildings located in a county having a population greater than 50,000
20and not more than 100,000, $100,000,000.
AB302-ASA1,4,2221 c. For buildings in a county having a population of not more than 50,000,
22$50,000,000.
AB302-ASA1,4,2423 d. For buildings located in more than one county, the amount provided under
24subd. 2. a., b., or c. for the most populous county in which the buildings are located.
AB302-ASA1,5,3
1(c) “Qualified investment” means the aggregate, non-duplicative eligible data
2center costs expended at a qualified data center by an owner, operator, or tenant, or
3an affiliate of an owner, operator, or tenant, of the qualified data center.
AB302-ASA1,5,10 4(2) Certification. (a) The corporation shall certify a qualified data center for
5purposes of the sales and use tax exemption under s. 77.54 (70). The certification
6shall include a description of the geographic location or locations and buildings of the
7qualified data center and an identification of the business entity specified in sub. (1)
8(b). The corporation shall contract with that business entity and shall, upon request,
9amend the certification and contract to include one or more additional locations and
10buildings of the qualified data center.
AB302-ASA1,5,1811 (b) If the corporation certifies a qualified data center for purposes of the sales
12and use tax exemption under s. 77.54 (70) and the data center fails to satisfy sub. (1)
13(b) 2., the corporation shall revoke the certification. All amounts of the sales and use
14tax exemption claimed under that certification as of the date of revocation shall
15become due and payable to each taxing authority against whom the exemption was
16claimed in the amounts so claimed. The corporation may grant an extension of time
17within which the qualified data center may avoid revocation by satisfying the
18applicable qualified investment requirement under sub. (1) (b) 2.
AB302-ASA1,7 19Section 7 . Effective date.
AB302-ASA1,5,2120 (1) Data center exemption. This act takes effect on the first day of the 3rd
21month beginning after publication.
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