All Roll Calls
Yes: 171 • No: 30
ArkansasHB14442025 Regular SessionHouse
TO AMEND THE SALES AND USE TAX EXEMPTION FOR DATA CENTERS.
Sponsored By: Jonathan Dismang (Republican), Aaron Pilkington (Republican)
Enacted
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Bill Overview
Analyzed Economic Effects
4 provisions identified: 3 benefits, 1 costs, 0 mixed.
Data centers get broader tax breaks
Certified Arkansas data centers pay no sales or use tax on eligible equipment, project and operating costs, services, and electricity. Equipment includes servers, software, networking, power and cooling systems, water-saving systems, security systems, cabling, and related labor. Purchased or leased equipment qualifies for immediate or future Arkansas use, but equipment used for facility administration is excluded. Eligible costs include land, buildings, equipment, leases, permits, site assessments, engineering, and design used directly and only for the center. Firms apply to the Department of Finance and Administration, which certifies eligible facilities and issues financial incentive certificates. The department must decide complete applications within 30 days. Applicants have 15 days to fix incomplete applications and keep their original application date. These rules start on the first day of the calendar quarter after the act takes effect.
Large data centers gain tax eligibility
The law creates a large-data-center category covering networked servers at two or more nonadjacent locations connected by fiber. It includes equipment connecting those sites and linking the firm's fiber network to internet connection points. The owner or operator must be a for-profit data processing, storage, and distribution business subject to Arkansas taxes. The firm must invest at least $2 billion within ten years after construction starts. It must pay at least $3 million in total annualized compensation during the two calendar years following the year operations start. Pay must cover services performed in Arkansas, and contractor pay counts. The center needs a positive Arkansas Economic Development Commission review and cannot mainly record virtual-currency transactions on a shared digital ledger.
More data centers qualify for tax relief
The law lowers the data center investment requirement from $500 million to $100 million within five years after construction starts. A center must house networked servers at one location or multiple adjacent locations. Its owner or operator must be a for-profit data processing, storage, and distribution business subject to Arkansas taxes. The firm must pay at least $1 million in total annualized compensation during the two calendar years after operations begin. Those two years follow the calendar year operations start; pay must cover services performed in Arkansas, and contractor pay counts. The center needs a positive review of costs and benefits from the Arkansas Economic Development Commission. It cannot mainly add virtual-currency transactions to a shared digital ledger.
Data centers face tax break revocation
Certified firms must report yearly that their centers meet the investment and compensation requirements for the preceding calendar year. The state must revoke certificates when annualized compensation falls below $1 million for regular centers or $3 million for large centers. A large center also loses its certificate if it fails the $2 billion investment requirement. A site within that large center keeps eligibility through separate certification when it independently meets the regular data center requirements. The state can update certification when added facilities bring a center into the large-data-center category.
Sponsors & Cosponsors
Sponsors
Jonathan Dismang
Republican • Senate
Aaron Pilkington
Republican • House
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
House vote • 4/7/2025
House Vote - Monday, April 7, 2025 2:35:14 PM
Yes: 76 • No: 9 • Other: 5
Senate vote • 3/31/2025
Senate Vote - Monday, March 31, 2025 4:01:33 PM
Yes: 24 • No: 4
House vote • 3/10/2025
House Vote - Monday, March 10, 2025 2:17:54 PM
Yes: 71 • No: 17 • Other: 11
Actions Timeline
Notification that HB1444 is now Act 548
4/10/2025HouseCorrectly enrolled and ordered transmitted to the Governor's Office.
4/8/2025HouseTO BE ENROLLED
4/7/2025HouseSenate amendment # 1 read and concurred in.
4/7/2025HouseReturned by the Committee with the recommendation that it do pass, concur in Senate Amendment No. 1
4/3/2025HouseRe-referred to the Committee on REVENUE & TAXATION- HOUSE
3/31/2025HouseReturned from Senate as passed, as amended # 1
3/31/2025HouseReturned to the House as passed as amended # 1 .
3/31/2025SenateRead the third time and passed.
3/31/2025SenateREPORTED CORRECTLY ENGROSSED
3/20/2025SenateAmendment # 1 read the first time, rules suspended, read the second time and adopted, ordered engrossed.
3/20/2025SenatePlaced on second reading for purpose of amendment.
3/20/2025SenateReturned by the Committee with the recommendation that it Do Pass as amended, Amendment # 1
3/19/2025SenateRead first time, rules suspended, read second time, referred to REVENUE & TAX - SENATE
3/10/2025SenateReceived from the House.
3/10/2025SenateRead the third time and passed and ordered transmitted to the Senate.
3/10/2025HouseReturned by the Committee Do Pass
3/6/2025HouseREPORTED CORRECTLY ENGROSSED
2/27/2025HouseAmendment No. 1 read and adopted and the bill ordered engrossed.
2/27/2025HousePlaced on second reading for the purpose of amendment.
2/27/2025HouseRead the first time, rules suspended, read the second time and referred to the Committee on REVENUE & TAXATION- HOUSE
2/10/2025HouseFiled
2/10/2025House
Bill Text
HB1444 - Introduced
2/10/2025
Act Version
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