HB897
Retail Sales and Use Tax; exemption for data centers.
Status:
In Senate
Latest Action:
Feb. 17, 2026
House: Read third time and passed House (61-Y 34-N 0-A)
Chief Patron:
Rip Sullivan (D)
Session:
2026 Regular Session
Summary
As Passed House of Origin. Retail sales and use tax; exemption for data centers.
Requires a data center operator, in order to be eligible for the existing data center sales and use tax exemption, to (i) beginning July 1, 2027, not use co-located generating facilities that emit carbon dioxide, other than backup generators; (ii) beginning July 1, 2029, contract for a certain percentage of ... (More) energy, capacity, and renewable energy certificates from clean energy resources, as evidenced by a certification from the State Corporation Commission, or contracts and service agreements; (iii) utilize only non-carbon dioxide-emitting backup power sources, such as energy storage resources, beginning on a date dependent on the data center's initial service date; and (iv) demonstrate, for any new data center issued a final certificate of occupancy or its equivalent on or after January 1, 2030, or for any data center operator seeking an amended memorandum of understanding, sufficient investment in environmental management and energy efficiency measures to provide system-wide benefits, as defined in the bill. Finally, the bill has a delayed effective date of July 1, 2027. (Less)-
Bill History
- 01/13/2026 - House: Prefiled and ordered printed; Offered 01-14-2026 26104836D
- 01/13/2026 - House: Referred to Committee on Finance
- 01/30/2026 - House: Placed on Finance Agenda
- 02/05/2026 - House: Assigned HFIN sub: Subcommittee #1
- 02/08/2026 - House: Fiscal Impact statement From TAX (2/8/2026 2:26 pm)
- 02/10/2026 - House: Placed on Finance Agenda
- 02/11/2026 - House: Incorporates HB961 (Watts)
- 02/11/2026 - House: Incorporates HB784 (Anderson)
- 02/11/2026 - House: House committee offered
- 02/11/2026 - House: Reported from Finance with substitute and referred to Appropriations (16-Y 5-N)
- 02/11/2026 - House: Referred to Committee on Appropriations
- 02/12/2026 - House: Committee substitute printed 26107782D-H1
- 02/12/2026 - House: Substitute bill reprinted 26107782D
- 02/13/2026 - House: Assigned HAPP sub: Commerce Agriculture & Natural Resources
- 02/13/2026 - House: Placed on Appropriations Agenda
- 02/13/2026 - House: Subcommittee recommends reporting with substitute (5-Y 2-N)
- 02/13/2026 - House: Reported from Appropriations with substitute (16-Y 6-N)
- 02/13/2026 - House: Committee substitute printed 26108015D-H2
- 02/15/2026 - House: Read first time
- 02/16/2026 - House: Read second time
- 02/16/2026 - House: committee substitute rejected
- 02/16/2026 - House: committee substitute agreed to
- 02/16/2026 - House: Engrossed by House - committee substitute
- 02/17/2026 - House: Read third time and passed House (61-Y 34-N 0-A) Close Floor Vote
