{"data":{"id":"us-ky/krs-139.499","jurisdiction":"us-ky","citation":"KRS 139.499","heading":"Exemption for certain data center equipment.","body":"(1) As used in this section:\n(a) 1. \"Approved company\";\n2. \"Authority\";\n3. \"Data center equipment\";\n4. \"Eligible costs\";\n5. \"Memorandum of agreement\";\n6. \"Preliminarily approved company\";\n7. \"Qualified data center project\"; and\n8. \"Term\";\nhave the same meaning as in KRS 154.20-220;\n(b) \"Certificate of exemption\" means a completed form provided by the\ndepartment stating at least:\n1. The name, address, and federal employer identification number of the\napproved company or preliminarily approved company;\n2. That the approved company or preliminarily approved company is\nexempt from sales and use tax on data center equipment purchased for\nuse in a qualified data center project in the Commonwealth; and\n3. The date of expiration based on the term of  the memorandum of\nagreement; and\n(c) \"Fiscal year\" means a period beginning on July 1 and continuing until the\nfollowing June 30.\n(2) The taxes imposed by this chapter shall not apply to the sale, purchase, use, storage,\nconsumption, installation, repair, and replacement of data center equipment to or by\na preliminarily approved company or an approved company in accordance with the\nmemorandum of agreement with the preliminarily approved company or the\napproved company as provided in subsection (4) of this section.\n(3) (a) The exemption provided in subsection (2) of this section shall apply whether\nor not the seller is under contract to deliver, assemble, and incorporate the\ndata center equipment into real estate for the qualified data center project.\n(b) An approved company or preliminarily approved company may provide the\nseller the certificate of exemption issued by the department to claim the\nexemption. The certificate may be executed by either:\n1. An approved company or preliminarily approved company; or\n2. Jointly by a contractor and an approved company or preliminarily\napproved company in any case in which a contractor under contract with\nthe approved company or preliminarily approved company purchases\nthe data center equipment.\n(4) Upon notification that the authority has executed a memorandum of agreement with\na preliminarily approved company, the department shall issue a certificate of\nexemption to the preliminarily approved company or the approved company.\n(5) (a) Upon notification that the authority  has terminated the sales and use tax\nexemptions available to the preliminarily approved company or the approved\ncompany as provided in KRS 154.20 -229, the department shall issue a notice\nof assessment to the approved company or preliminarily approved company.\n(b) The aggregate amount of sales and use tax recovered shall not exceed the sum\nof the aggregate value of tax not paid as a result of the tax exemption under\nthis section together with interest required under KRS Chapter 131.\n(c) If the notice of assessment is issued to:\n1. A preliminarily approved company, notwithstanding KRS 139.620, the\nnotice of assessment under paragraph (b) of this subsection shall be\nconsidered timely if the department issues the notice of assessment the\nlater of:\na. One hundre d eighty (180) days from the date the department is\nnotified by the authority related to termination of the\nmemorandum of agreement; or\nb. The date on which a notice of assessment could otherwise be\nissued in a timely manner under KRS 139.620;\n2. An approved company, the notice of assessment shall be assessed on the\nopen periods and subject to KRS 139.620; and\n3. A subsequent owner under KRS 154.20 -229(8)(b)1., the notice of\nassessment shall include the tax assumed by the subsequent owner and\nthe open perio ds for assessment shall be determined under\nsubparagraphs 1. and 2. of this paragraph and depend solely on whether\nthe subsequent owner is a preliminarily approved company or an\napproved company.\n(6) Beginning September 1, 2025, and on or before September 1 for each year\nthereafter, a preliminarily approved company shall report to the department\nannually:\n(a) The name, address, and any other identifying information the department may\nrequire for the qualified data center project;\n(b) The county in which the qualified data center project is located; and\n(c) An itemized schedule of qualified data center equipment purchased during the\nfiscal year and the applicable sales and use tax that was not paid as a result of\nthe sales and use tax exemption, including ver ification and certification by an\nindependent third party unrelated to the preliminarily approved company.\n(7) Beginning November 1, 2025, and on or before November 1 of each year thereafter,\nthe department shall report to the authority and the Interim Joint Committee on\nAppropriations and Revenue the data reported for data center project under\nsubsection (6) of this section.\n(8) All information required to be reported under this section shall not be considered\nconfidential taxpayer information and shall not be subject to KRS Chapter 131 or\nany other provisions of the Kentucky Revised Statutes prohibiting disclosure  or\nreporting of information.","path":["KRS Chapter 139"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=55425","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:50:32Z","sha256":"6c33bc3f0019f4c786fc25cd5caf2daceef6181653389479eedbc43eb5dc728b","source_id":"us-ky","stale":false,"prev":"us-ky/krs-139.498","next":"us-ky/krs-139.500"},"notice":"GroundRules: Original legal text. Not legal advice."}