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WashingtonSB 62312025-2026 Regular SessionSenate

Removing a tax exemption for the replacement of equipment for data centers.

Sponsored By: Noel Frame (Democratic)

Signed by Governor

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Bill Overview

Analyzed Economic Effects

2 provisions identified: 0 benefits, 2 costs, 0 mixed.

Data centers lose replacement server tax breaks

Beginning July 1, 2026, qualifying Washington data center businesses and tenants lose the sales tax break for replacement servers. Original server equipment remains eligible. One rule applies to centers whose construction began after June 30, 2015, and before July 1, 2035. That provision expires July 1, 2048. A separate rule covers eligible equipment installed on or after June 9, 2022; that provision expires July 1, 2038.

Refurbished data centers lose tax breaks

Beginning July 1, 2026, Washington's sales tax exemption for data centers qualifying through refurbishment ends. The state also stops issuing new exemption certificates for those centers on that date. A separate rule excludes centers refurbished on or after July 1, 2026, from qualifying on that basis. Businesses and tenants cannot claim that section's sales tax breaks based on those refurbishments. The separate section expires July 1, 2038.

Sponsors & Cosponsors

Sponsor

  • Noel Frame

    Democratic • Senate

Cosponsors

  • Bob Hasegawa

    Democratic • Senate

Roll Call Votes

All Roll Calls

Yes: 124 • No: 119

House vote • 3/12/2026

2663 Orcutt Pg 2 Ln 25

Yes: 47 • No: 50 • Other: 1

House vote • 3/12/2026

3rd Reading & Final Passage

Yes: 51 • No: 46 • Other: 1

Senate vote • 2/28/2026

3rd Reading & Final Passage

Yes: 26 • No: 23

Actions Timeline

  1. Governor signed.

    4/1/2026legislature

  2. Chapter 266, 2026 Laws.

    4/1/2026Senate

  3. Effective date 6/11/2026*.

    4/1/2026Senate

  4. Delivered to Governor.

    3/13/2026legislature

  5. Third reading, passed; yeas, 51; nays, 46; absent, 0; excused, 1.

    3/12/2026Senate

  6. Rules suspended. Placed on Third Reading.

    3/12/2026Senate

  7. President signed.

    3/12/2026legislature

  8. Speaker signed.

    3/12/2026legislature

  9. Rules Committee relieved of further consideration. Placed on second reading.

    3/9/2026Senate

  10. Referred to Rules 2 Review.

    3/9/2026Senate

  11. Minority; do not pass.

    3/7/2026Senate

  12. FIN - Majority; do pass.

    3/7/2026Senate

  13. FIN - Executive action taken by committee.

    3/7/2026Senate

  14. First reading, referred to Finance.

    3/3/2026Senate

  15. Third reading, passed; yeas, 26; nays, 23; absent, 0; excused, 0.

    2/28/2026Senate

  16. Rules suspended. Placed on Third Reading.

    2/28/2026Senate

  17. Floor amendment(s) adopted.

    2/28/2026Senate

  18. 1st substitute bill substituted.

    2/28/2026Senate

  19. Placed on second reading by Rules Committee.

    2/27/2026Senate

  20. Passed to Rules Committee for second reading.

    2/23/2026Senate

  21. Minority; without recommendation.

    2/19/2026Senate

  22. Minority; do not pass.

    2/19/2026Senate

  23. WM - Majority; 1st substitute bill be substituted, do pass.

    2/19/2026Senate

  24. First reading, referred to Ways & Means.

    1/20/2026Senate

  25. Introduced

    1/20/2026Senate

Bill Text

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