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SB00245 • 2026

AN ACT ELIMINATING CERTAIN TAX INCENTIVES FOR DATA CENTERS.

AN ACT ELIMINATING CERTAIN TAX INCENTIVES FOR DATA CENTERS.

Energy Housing Taxes Technology
Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor
Energy and Technology Committee
Last action
2026-03-23
Official status
Favorable Change of Reference, House to Committee on Finance, Revenue and Bonding
Effective date
Not listed

Plain English Breakdown

The official source confirms the effective date is July 1, 2026, for Section 1.

Ending Tax Breaks for Data Centers

This law stops the state from accepting new applications for tax exemption agreements for data centers starting July 1, 2026.

What This Bill Does

  • Stops the Commissioner of Economic and Community Development from accepting any application for a tax exemption agreement on or after July 1, 2026.

Who It Names or Affects

  • People who plan to own a qualified data center in the state.
  • Companies that want to operate a qualified data center in the state.
  • Businesses seeking to be colocation tenants in these facilities.

Terms To Know

Colocation tenant
A company or person who rents space inside someone else's data center building.
Commissioner of Economic and Community Development
The state official responsible for accepting applications for these tax exemption agreements.

Limits and Unknowns

  • This law does not explain if it changes taxes for data centers that already have an agreement.
  • The text mentions chapters 203 and 219 but does not list the specific dollar amounts or types of taxes involved.

Bill History

  1. 2026-03-23 Connecticut General Assembly

    Favorable Change of Reference, Senate to Committee on Finance, Revenue and Bonding

  2. 2026-03-23 Connecticut General Assembly

    Favorable Change of Reference, House to Committee on Finance, Revenue and Bonding

  3. 2026-03-20 LCO

    Reported Out of Legislative Commissioners' Office

  4. 2026-03-18 LCO

    Filed with Legislative Commissioners' Office

  5. 2026-03-17 ET

    Joint Favorable Change of Reference Finance, Revenue and Bonding

  6. 2026-02-20 Connecticut General Assembly

    Public Hearing 02/24

  7. 2026-02-19 Connecticut General Assembly

    Referred to Joint Committee on Energy and Technology

Official Summary Text

To eliminate certain tax incentives for data centers in the state.

Current Bill Text

Read the full stored bill text 
LCO 1419 1 of 2

General Assembly Raised Bill No. 245
February Session, 2026 LCO No. 1419

Referred to Committee on ENERGY AND TECHNOLOGY

Introduced by:
(ET)

AN ACT ELIMINATING CERTAIN TAX INCENTIVES FOR DATA
CENTERS.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:

Section 1. Subsection (b) of section 32 -286 of the general statutes is 1
repealed and the following is substituted in lieu thereof (Effective July 1, 2
2026): 3
(b) Any person that anticipates it will own, operate or be a colocation 4
tenant in a qualified data center in this state may apply to the 5
Commissioner of Economic and Community Development to enter into 6
an agreement in accordance with the provisions of subsection (c) of this 7
section, for exemption from the taxes imposed under chapters 203 and 8
219 as set forth in subsections (d) and (e) of this section , provided no 9
such application may be accepted by the commissioner on or after July 10
1, 2026. 11
This act shall take effect as follows and shall amend the following
sections:

Section 1 July 1, 2026 32-286(b)
Raised Bill No. 245

LCO 1419 2 of 2

ET Joint Favorable C/R FIN