House Amendment 1625
PAG LIN
1 1 Amend the amendment, H=1599, to House File 819 as
1 2 follows:
1 3 #1. By striking page 1, line 10, through page 4,
1 4 line 12, and inserting the following:
1 5 <Sec. . Section 423.3, Code 2009, is amended by
1 6 adding the following new subsection:
1 7 NEW SUBSECTION. 95. a. (1) The sales price from
1 8 the sale or rental of computers and equipment that are
1 9 necessary for the maintenance and operation of a data
1 10 center business and property whether directly or
1 11 indirectly connected to the computers, including but
1 12 not limited to cooling systems, cooling towers, and
1 13 other temperature control infrastructure; power
1 14 infrastructure for transformation, distribution, or
1 15 management of electricity used for the maintenance and
1 16 operation of the data center business, including but
1 17 not limited to exterior dedicated business=owned
1 18 substations, backup power generation systems, battery
1 19 systems, and related infrastructure; and racking
1 20 systems, cabling, and trays, which are necessary for
1 21 the maintenance and operation of the data center
1 22 business.
1 23 (2) The sales price of backup power generation
1 24 fuel that is purchased by a data center business for
1 25 use in the items listed in subparagraph (1).
1 26 (3) The sales price of electricity purchased for
1 27 use by a data center business.
1 28 b. For the purpose of claiming this exemption, all
1 29 of the following requirements shall be met:
1 30 (1) The purchaser or renter shall be a data center
1 31 business.
1 32 (2) The data center business shall have a physical
1 33 location in the state that is, in the aggregate, at
1 34 least five thousand square feet in size that is used
1 35 for the operations and maintenance of the data center
1 36 business.
1 37 (3) The data center business shall make a minimum
1 38 investment in an Iowa physical location of two hundred
1 39 million dollars within the first six years of
1 40 operation in Iowa beginning with the date the data
1 41 center business initiates site preparation activities.
1 42 The minimum investment includes the initial
1 43 investment, including land and subsequent acquisition
1 44 of additional adjacent land and subsequent investment
1 45 at the Iowa location.
1 46 (4) The data center business shall comply with the
1 47 sustainable design and construction standards
1 48 established by the state building code commissioner
1 49 pursuant to section 103A.8B.
1 50 c. This exemption applies from the date of the
2 1 initial investment in or the initiation of site
2 2 preparation activities for the data center business
2 3 facility as described in paragraph "b".
2 4 d. Failure to meet eighty percent of the minimum
2 5 investment amount requirement specified in paragraph
2 6 "b" within the first six years of operation from the
2 7 date the data center business initiates site
2 8 preparation activities will result in the data center
2 9 business losing the right to claim this data center
2 10 business exemption and the data center business shall
2 11 pay all sales or use tax that would have been due on
2 12 the purchase or rental or use of the items listed in
2 13 this exemption, plus any applicable penalty and
2 14 interest imposed by statute.
2 15 e. For purposes of this subsection:
2 16 (1) "Data center" means a building rehabilitated
2 17 or constructed to house a group of networked server
2 18 computers in one physical location in order to
2 19 centralize the storage, management, and dissemination
2 20 of data and information pertaining to a particular
2 21 business, taxonomy, or body of knowledge. A data
2 22 center business's facility typically includes the
2 23 mechanical and electrical systems, redundant or backup
2 24 power supplies, redundant data communications
2 25 connections, environmental controls, and fire
2 26 suppression systems. A data center business's
2 27 facility also includes a restricted access area
2 28 employing advanced physical security measures such as
2 29 video surveillance systems and card=based security or
2 30 biometric security access systems.
2 31 (2) "Data center business" means an entity whose
2 32 business among other businesses, is to operate a data
2 33 center.
2 34 Sec. . Section 423.4, subsection 8, Code 2009,
2 35 is amended to read as follows:
2 36 8. a. The owner of an information technology
2 37 facility a data center business, as defined in section
2 38 423.3, subsection 95, located in this state on July 1,
2 39 2007, and having a primary business with a North
2 40 American industry classification system number 518210
2 41 or 541519 as verified by the department of economic
2 42 development using nationally recognized third=party
2 43 sources such as Hoovers, Harris Directory or others
2 44 designated by the department of economic development,
2 45 may make an annual application for up to five
2 46 consecutive years to the department for the refund of
2 47 fifty percent of the sales or use tax upon the sales
2 48 price of all sales of fuel used in creating heat,
2 49 power, and steam for processing or generating
2 50 electrical current, or from the sale of electricity
3 1 consumed by computers, machinery, or other equipment
3 2 for operation of the technology data center business
3 3 facility.
3 4 b. An information technology facility A data
3 5 center business shall qualify for the refund in this
3 6 subsection if all of the following criteria are met:
3 7 (1) The facility's six=digit North American
3 8 industry classification system number 518210 or 541519
3 9 indicates that the facility is primarily engaged in
3 10 providing computer=related services data center
3 11 business shall make an investment in an Iowa physical
3 12 location within the first three years of operation in
3 13 Iowa beginning with the date on which the data center
3 14 business initiates site preparation activities.
3 15 (2) The amount of the investment in an Iowa
3 16 physical location, including the value of a lease
3 17 agreement, or an investment in land or buildings, and
3 18 the capital expenditures for computers, machinery, and
3 19 other equipment used in the operation of the facility
3 20 equals data center business shall equal at least one
3 21 million dollars, but shall not exceed ten million
3 22 dollars for a newly constructed building or five
3 23 million dollars for a rehabilitated building.
3 24 (3) If the data center business is leasing a
3 25 building to house operations, the data center business
3 26 shall enter into a lease that is at least five years
3 27 in duration.
3 28 (3) (4) The facility is certified as meeting the
3 29 Leadership in Energy and Environmental Design (LEED)
3 30 standards data center business shall comply with the
3 31 sustainable design and construction standards
3 32 established by the state building code commissioner
3 33 pursuant to section 103A.8B.
3 34 c. The refund may be obtained only in the
3 35 following manner and under the following conditions:
3 36 (1) The applicant shall use forms furnished by the
3 37 department.
3 38 (2) The applicant shall separately list the
3 39 amounts of sales and use tax paid during the reporting
3 40 period.
3 41 (3) The applicant may request when the refund
3 42 begins, but it must start on the first day of a month
3 43 and proceed for a continuous twelve=month period.
3 44 d. In determining the amount to be refunded, if
3 45 the dates of the utility billing or meter reading
3 46 cycle for the sale or furnishing of metered gas and
3 47 electricity are on or after the first day of the first
3 48 month through the last day of the last month of the
3 49 refund year, the full fifty percent of the amount of
3 50 tax charged in the billings shall be refunded. In
4 1 determining the amount to be refunded, if the dates of
4 2 the sale or furnishing of fuel for purposes of
4 3 commercial energy and the delivery of the fuel are on
4 4 or after the first day of the first month through the
4 5 last day of the last month of the refund year, the
4 6 full fifty percent of the amount of tax charged in the
4 7 billings shall be refunded.
4 8 e. To receive refunds during the five=year period,
4 9 the applicant shall file a refund claim within three
4 10 months after the end of each refund year.
4 11 f. The refund in this subsection applies only to
4 12 state sales and use tax paid and does not apply to
4 13 local option sales and services taxes imposed pursuant
4 14 to chapters chapter 423B and 423E. Notwithstanding
4 15 the state sales tax imposed in section 423.2, a refund
4 16 issued pursuant to this section shall not exceed an
4 17 amount equal to five percent of the sales price of the
4 18 fuel used to create heat, power, and steam for
4 19 processing or generating electrical current or from
4 20 the sale price of electricity consumed by computers,
4 21 machinery, or other equipment for operation of the
4 22 data center business facility.
4 23 Sec. . Section 423.4, Code 2009, is amended by
4 24 adding the following new subsection:
4 25 NEW SUBSECTION. 9. a. The owner of a data center
4 26 business, as defined in section 423.3, subsection 95,
4 27 paragraph "e", located in this state that is not
4 28 eligible for the exemption under section 423.3,
4 29 subsection 95, may make an annual application to the
4 30 department for the refund of fifty percent of the
4 31 sales or use tax upon all of the following:
4 32 (1) The sales price from the sale or rental of
4 33 computers and equipment that are necessary for the
4 34 maintenance and operation of a data center business
4 35 and property whether directly or indirectly connected
4 36 to the computers, including but not limited to cooling
4 37 systems, cooling towers, and other temperature control
4 38 infrastructure; power infrastructure for
4 39 transformation, distribution, or management of
4 40 electricity used for the maintenance and operation of
4 41 the data center business including but not limited to
4 42 exterior dedicated business=owned substations, backup
4 43 power generation systems, battery systems, and related
4 44 infrastructure; and racking systems, cabling, and
4 45 trays, which are necessary for the maintenance and
4 46 operation of the data center business.
4 47 (2) The sales price of backup power generation
4 48 fuel that is purchased by a data center business for
4 49 use in the items listed in subparagraph (1).
4 50 (3) The sales price of electricity purchased for
5 1 use in providing data center services.
5 2 b. A data center business shall qualify for the
5 3 partial refund in this subsection if all of the
5 4 following criteria are met:
5 5 (1) The data center business shall have a physical
5 6 location in the state which is at least five thousand
5 7 square feet in size.
5 8 (2) The data center business shall make a minimum
5 9 investment of at least ten million dollars, in the
5 10 case of new construction, or at least five million
5 11 dollars in the case of a rehabilitated building, in an
5 12 Iowa physical location within the first six years of
5 13 operation in Iowa, beginning with the date on which
5 14 the data center business initiates site preparation
5 15 activities. The minimum investment includes the
5 16 initial investment, including the value of a lease
5 17 agreement or the amount invested in land and
5 18 subsequent acquisition of additional adjacent land and
5 19 subsequent investment at the Iowa location.
5 20 (3) If the data center business is leasing a
5 21 building to house operations, the data center business
5 22 shall enter into a lease that is at least five years
5 23 in duration.
5 24 (4) The data center business shall comply with the
5 25 sustainable design and construction standards
5 26 established by the state building code commissioner
5 27 pursuant to section 103A.8B.
5 28 c. The refund allowed under this subsection shall
5 29 be available for the following periods of time:
5 30 (1) For an investment of at least ten million
5 31 dollars, in the case of new construction, or at least
5 32 five million dollars, in the case of a rehabilitated
5 33 building, but less than seventy=three million dollars,
5 34 fifteen years.
5 35 (2) For an investment of at least seventy=three
5 36 million dollars but less than one hundred thirty=six
5 37 million dollars, ten years.
5 38 (3) For an investment of at least one hundred
5 39 thirty=six million dollars, but less than two hundred
5 40 million dollars, seven years.
5 41 d. The refund may be obtained only in the
5 42 following manner and under the following conditions:
5 43 (1) The applicant shall use forms furnished by the
5 44 department.
5 45 (2) The applicant shall separately list the
5 46 amounts of sales and use tax paid during the reporting
5 47 period.
5 48 (3) The applicant may request when the refund
5 49 begins, but it must start on the first day of a month
5 50 and proceed for a continuous twelve=month period.
6 1 e. In determining the amount to be refunded, if
6 2 the dates of the utility billing or meter reading
6 3 cycle for the sale or furnishing of metered gas and
6 4 electricity are on or after the first day of the first
6 5 month through the last day of the last month of the
6 6 refund year, fifty percent of the amount of tax
6 7 charged in the billings shall be refunded. In
6 8 determining the amount to be refunded, if the dates of
6 9 the sale or furnishing of fuel for purposes of
6 10 commercial energy and the delivery of the fuel are on
6 11 or after the first day of the first month through the
6 12 last day of the last month of the refund year, fifty
6 13 percent of the amount of tax charged in the billings
6 14 shall be refunded.
6 15 f. To receive refunds during the applicable refund
6 16 period, the applicant shall file a refund claim within
6 17 three months after the end of each refund year.
6 18 g. The refund in this subsection applies only to
6 19 state sales and use tax paid and does not apply to
6 20 local option sales and services taxes imposed pursuant
6 21 to chapter 423B. Notwithstanding the state sales tax
6 22 imposed in section 423.2, a refund issued pursuant to
6 23 this section shall not exceed an amount equal to five
6 24 percent of the sales price of the items listed in
6 25 paragraph "a", subparagraphs (1), (2), and (3).
6 26 Sec. . Section 427.1, Code 2009, is amended by
6 27 adding the following new subsection:
6 28 NEW SUBSECTION. 37. DATA CENTER BUSINESS
6 29 PROPERTY.
6 30 a. Property, other than land and buildings and
6 31 other improvements, that is utilized by a data center
6 32 business as defined in and meeting the requirements of
6 33 section 423.3, subsection 95, including computers and
6 34 equipment that are necessary for the maintenance and
6 35 operation of a data center business and other property
6 36 whether directly or indirectly connected to the
6 37 computers, including but not limited to cooling
6 38 systems, cooling towers, and other temperature control
6 39 infrastructure; power infrastructure for
6 40 transformation, distribution, or management of
6 41 electricity, including but not limited to exterior
6 42 dedicated business=owned substations, and power
6 43 distribution systems which are not subject to
6 44 assessment under chapter 437A; racking systems,
6 45 cabling, and trays; and backup power generation
6 46 systems, battery systems, and related infrastructure
6 47 all of which are necessary for the maintenance and
6 48 operation of the data center business.
6 49 b. This data center business exemption applies
6 50 beginning with the assessment year the investment in
7 1 or construction of the facility utilizing the
7 2 materials, equipment, and systems set forth in
7 3 paragraph "a" are first assessed.
7 4 Sec. . IMPLEMENTATION. Section 25B.7 does not
7 5 apply to the property tax exemption enacted in this
7 6 Act.
7 7 Sec. . APPLICABILITY DATE PROVISION. The
7 8 sections of this division of this Act providing sales
7 9 and use tax refunds apply to sales and use tax paid on
7 10 or after July 1, 2009.>
7 11
7 12
7 13
7 14 RANTS of Woodbury
7 15 HF 819.501 83
7 16 tw/mg:sc/24347
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