PRINTER'S NO. 3437
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
2332
Session of
2020
INTRODUCED BY OBERLANDER, PICKETT, JAMES, MILLARD, YOUNGBLOOD,
PYLE, WILLIAMS AND SANKEY, MARCH 5, 2020
REFERRED TO COMMITTEE ON FINANCE, MARCH 5, 2020
AN ACT
Amending the act of March 4, 1971 (P.L.6, No.2), entitled "An
act relating to tax reform and State taxation by codifying
and enumerating certain subjects of taxation and imposing
taxes thereon; providing procedures for the payment,
collection, administration and enforcement thereof; providing
for tax credits in certain cases; conferring powers and
imposing duties upon the Department of Revenue, certain
employers, fiduciaries, individuals, persons, corporations
and other entities; prescribing crimes, offenses and
penalties," in sales and use tax, further providing for
definitions and for exclusions from tax; and, in computer
data center equipment incentive program, further providing
for application and for limitations.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Sections 201 and 204 of the act of March 4, 1971
(P.L.6, No.2), known as the Tax Reform Code of 1971, are amended
by adding clauses to read:
Section 201. Definitions.--The following words, terms and
phrases when used in this Article II shall have the meaning
ascribed to them in this section, except where the context
clearly indicates a different meaning:
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(mmm) "Computer data center." All or part of a facility
that may be composed of one or more businesses, owners or
tenants, that is or will be predominantly used to house working
servers or similar data storage systems and that may have
uninterruptible energy supply or generator backup power, or
both, cooling systems, towers and other temperature control
infrastructure.
(nnn) "Computer data center equipment." Equipment that is
used to outfit, operate or benefit a computer data center and
component parts, installations, refreshments, replacements and
upgrades to the equipment, regardless of whether any of the
equipment is affixed to or incorporated into real property,
including any of the following:
(1) Equipment necessary for the transformation, generation,
distribution or management of electricity that is required to
operate computer servers or similar data storage equipment,
including uninterruptible energy supplies, generators, conduit,
gaseous fuel piping, cabling, duct banks, switches,
switchboards, batteries and testing equipment.
(2) Equipment necessary to cool and maintain a controlled
environment for the operation of computer servers or data
storage systems and other components of a computer data center,
including mechanical equipment, refrigerant piping, gaseous fuel
piping, adiabatic and free cooling systems, cooling towers,
water softeners, air handling units, indoor direct exchange
units, fans, ducting and filters.
(3) Water conservation systems, including facilities or
mechanisms that are designed to collect, conserve and reuse
water.
(4) Software, including, but not limited to, enabling
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software and licensing agreements, computer servers or similar
data storage equipment, chassis, networking equipment, switches,
racks, cabling, trays and conduits.
(5) Monitoring equipment and security systems.
(6) Modular data centers and preassembled components of any
item described under this clause, including components used in
the manufacturing of modular data centers.
(7) Other tangible personal property that is essential to
the operations of a computer data center.
(ooo) "Telecommunications provider." A provider of
telecommunications services.
Section 204. Exclusions from Tax.--The tax imposed by
section 202 shall not be imposed upon any of the following:
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(74) The sale at retail or use of computer data center
equipment for installation in a computer data center. The
exclusion under this clause shall not apply to any of the
following:
(i) A telecommunications provider's computer data center
where retail or wholesale customers are not being billed or
paying for services and a majority of services are from internal
services to the telecommunications provider or the
telecommunications provider's subsidiaries.
(ii) Computer data center equipment used by a computer data
center to generate electricity for resale purposes to a public
utility or to generate, provide or sell more than five percent
of the computer data center's electricity outside of the
computer data center.
Section 2. Section 2913-D(a) of the act is amended and the
section is amended by adding a subsection to read:
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Section 2913-D. Application.
(a) General rule.--[An] Except as provided under subsection
(c), an owner, operator or qualified tenant may apply for a tax
refund under this article on or before July 30, 2017, and each
July 30 thereafter.
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(c) Limitation.--An owner, operator or qualified tenant may
not apply for a tax refund under this article after April 30,
2020.
Section 3. Section 2914-D of the act is amended by adding a
subsection to read:
Section 2914-D. Limitations.
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(c) Expiration.--The department may not approve a tax refund
under this article after June 30, 2020.
Section 4. This act shall take effect as follows:
(1) The following shall take effect July 1, 2020, or
immediately, whichever is later:
(i) The addition of section 201(mmm), (nnn) and
(ooo) of the act.
(ii) The addition of section 204(74) of the act.
(2) The remainder of this act shall take effect
immediately.
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