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PRIOR PRINTER'S NOS. 3136, 3629, 3684 PRINTER'S NO. 3724
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 2359
Session of
2026
INTRODUCED BY CIRESI, PROKOPIAK, HILL-EVANS, HOHENSTEIN, MADSEN,
MULLINS, FREEMAN, PROBST, SHUSTERMAN, HADDOCK, GUENST,
CEPEDA-FREYTIZ, DONAHUE, BELLMON, STEELE, WAXMAN, MALAGARI,
RIVERA, McNEILL, INGLIS, POWELL, DEASY, KHAN, MARKOSEK,
D. WILLIAMS, HARKINS, CONKLIN, KRAJEWSKI, SAMUELSON, OTTEN,
PIELLI, FRIEL, WALSH, HOWARD, WEBSTER, MAYES, KINKEAD,
GILLEN, BOROWSKI, SMITH-WADE-EL, HANBIDGE, BRIGGS, B. MILLER,
COOPER, EMRICK, KRUPA, TAKAC, SCOTT AND GREEN, APRIL 6, 2026
AS AMENDED ON SECOND CONSIDERATION, HOUSE OF REPRESENTATIVES,
JUNE 29, 2026
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 computer data center equipment incentive
program, further providing for definitions, for application
for certification, for eligibility requirements relating to
sales and use tax refund program, for notification, for
eligibility requirements relating to sales and use tax
exemption program and for notification and records.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 2901-D of the act of March 4, 1971
(P.L.6, No.2), known as the Tax Reform Code of 1971, is amended
by adding a definition to read:
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Section 2901-D. Definitions.
The following words and phrases when used in this article
shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Agency." As defined in section 102 of the act of February
14, 2008 (P.L.6, No.3), known as the Right-to-Know Law.
* * *
Section 2. Section 2912-D(3) and (4) of the act are amended
and the section is amended by adding a paragraph to read:
Section 2912-D. Application for certification.
To be considered for a certification, an owner or operator of
a computer data center shall submit to the department an
application on a form prescribed by the department that includes
the following:
* * *
(3) If the computer data center is to qualify under
section [2915-D(1)] 2915-D(a)(1), the following information:
(i) The anticipated investment associated with the
computer data center for which the certification is being
sought.
(ii) An affirmation, signed by an authorized
executive representing the owner or operator, that the
computer data center is expected to satisfy the
certification requirements prescribed in section [2915-
D(1)] 2915-D(a)(1).
(4) If the computer data center is to qualify under
section [2915-D(2)] 2915-D(a)(2), an affirmation, signed by
an authorized executive representing the owner or operator,
that the computer data center has satisfied, or will satisfy,
the certification requirements prescribed in section [2915-
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D(2)] 29 15-D(a)(2) .
(4.1) If the computer data center is to qualify under
section 2915-D(b) and (c), an affirmation, signed by an
authorized executive representing the owner or operator, that
the owner or operator of the computer data center has
satisfied, or will satisfy, the certification requirements
prescribed under section 2915-D(b) and (c). Except as
provided under section 2915-D(d), in order to retain a
certificate under this subarticle, the owner or operator of
the computer data center shall annually submit the required
footprint report under section 2915-D(b) to the department
that reflects any updates to the operations of the facility.
* * *
Section 3. Sections 2915-D introductory paragraph and 2916-
D(a) heading of the act are amended and the sections are amended
by adding subsections to read:
Section 2915-D. Eligibility requirements.
(a) Requ irements.-- A computer data center must meet one of
the following requirements, after taking into account the
combined investments made and annual compensation paid by the
owner or operator of the computer data center or the qualified
tenant:
* * *
(b) Community protections.--On or before the first
anniversary of certification, the owner or operator of a
computer data center must complete a community protection plan
that identifies the following information:
(1) The name, address and telephone number of the entity
or entities that occupy the commercial data center during its
operations.
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(2) Documentation that the owner or operator or
authorized representative has performed all of the following
prior to the construction of the commercial data center:
(i) Provided notification to the municipality or
municipalities in which the facility is proposed to be
located.
(ii) Held at least one public meeting to receive
input from community members of the municipality or
municipalities in which the facility is proposed to be
located, including all measures undertaken to ensure that
the public meetings were convenient and accessible to the
public.
(iii) Consulted with each chief elected official of
the municipality or municipalities or the official's
designee to discuss the proposed facility and elements of
the project design that may impact the community.
(3) A project footprint report, which shall include the
following:
(i) The total size of the facility measured in
square feet.
(ii) Any plans or measures undertaken to generate
electricity on-site or off-site to reduce impacts on the
electric grid.
(iii) Estimated average energy consumption per hour
during the computer data center's peak demand, including
the source or sources of electric supply.
(iv) Estimated daily, monthly and annual maximum
water consumption, including the discharge rates and
volumes, water source and purpose of consumption.
(v) Anticipated average annual power usage
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effectiveness, calculated by dividing the total amount of
electricity consumed from the computer data center by the
electricity used to operate the computer data center
equipment.
(vi) Anticipated average annual water usage
effectiveness, calculated by dividing the total amount of
water consumed from the computer data center by the
kilowatt hours of electricity used to operate the
computer data center equipment.
(c) Nondisclosure agreements.--On or before the first
anniversary of certification, the owner or operator of a
computer data center must certify that an agreement has not been
entered into, or will not be entered into, with an agency, or
any entity acting on behalf of an agency, that relates to the
construction, development or location of the facility and
requires confidentiality, nondisclosure or otherwise restricts
the agency from disclosing information to members of the public.
(d) Applicability.--
(1) The requirements under subsections (b) and (c) shall
not apply to a computer data center with a peak electric
demand of less than 10 megawatts.
(2) Subsection (b)(2) shall not apply to a commercial
data center that has commenced construction prior to the
effective date of this subsection.
(3) Subsection (c) shall not apply to an owner or
operator or qualified tenant holding a certification under
this subarticle prior to the effective date of this
subsection.
Section 2916-D. Notification.
(a) [Requirements] Investment and compensation requirements
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satisfied.--On or before the fourth anniversary of the
certification of a computer data center, the owner or operator
of a computer data center shall notify the department in writing
whether the computer data center for which the certification is
requested has satisfied the requirements prescribed in section
2915-D.
(a.1) Other requirements satisfied.--On or before the first
anniversary of certification of a computer data center, the
owner or operator of a computer data center shall notify the
department in writing whether the computer data center for which
the certification is requested has satisfied the requirements
under section 2915-D(b) and (c).
* * *
Section 4. Section 2935-D(a) of the act is amended by adding
paragraphs and the section is amended by adding a subsection to
read:
Section 2935-D. Eligibility requirements.
(a) General rule.--In order to be certified under this
subarticle, an owner or operator of a computer data center must
meet all of the following requirements:
* * *
(3) On or before the first anniversary of certification,
the owner or operator of the computer data center must
complete a community protection plan that identifies the
following information:
(i) The name of the entity or entities that occupy
the commercial data center during its operations.
(ii) Documentation that the owner or operator or
authorized representative has performed all of the
following prior to the construction of the commercial
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data center:
(A) Provided notification to the municipality or
municipalities in which the facility is proposed to
be located.
(B) Held at least one public meeting to receive
input from community members of the municipality or
municipalities in which the facility is proposed to
be located, including all measures undertaken to
ensure that the public meetings were convenient and
accessible to the public.
(C) Consulted with each chief elected official
of the municipality or municipalities or the
official's designee to discuss the proposed facility
and elements of the project design that may impact
the community.
(iii) A project footprint report, which shall
include the following:
(A) The total size of the facility measured in
square feet.
(B) Any plans or measures undertaken to generate
electricity on-site or off-site to reduce impacts on
the electric grid.
(C) Estimated average energy consumption per
hour during the computer data center's peak demand,
including the source or sources of electric supply.
(D) Estimated daily, monthly and annual maximum
water consumption, including the discharge rates and
volumes, water source and purpose of consumption.
(E) Anticipated average annual power usage
effectiveness, calculated by dividing the total
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amount of electricity consumed from the computer data
center by the electricity used to operate the
computer data center equipment.
(F) Anticipated average annual water usage
effectiveness, calculated by dividing the total
amount of water consumed from the computer data
center by the kilowatt hours of electricity used to
operate the computer data center equipment.
(4) On or before the first anniversary of certification,
the owner or operator of the computer data center must
certify that an agreement has not been entered into, or will
not be entered into, with an agency, or any entity acting on
behalf of an agency, that relates to the construction,
development or location of the facility and requires
confidentiality, nondisclosure or otherwise restricts the
agency from disclosing information to members of the public.
(a.1) Applicability.--
(1) The requirements under subsection (a)(3) and (4)
shall not apply to a computer data center with a peak
electric demand of less than 10 megawatts.
(2) Subsection (a)(3)(ii) shall not apply to a
commercial data center that has commenced construction prior
to the effective date of this subsection.
(3) Subsection (a)(4) shall not apply to an owner or
operator or qualified tenant holding a certification under
this subarticle prior to the effective date of this
subsection.
* * *
Section 5. Section 2936-D(a) of the act is amended and the
section is amended by adding a subsection to read:
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Section 2936-D. Notification and records.
(a) [Requirements] Investment and compensation requirements
satisfied.--On or before the fourth anniversary of the
certification of a computer data center, the owner or operator
of the computer data center shall notify the department in
writing whether the computer data center for which the
certification is requested has satisfied the requirements
prescribed under section 2935-D(a).
(a.1) Other requirements satisfied.--
(1) On or before the first anniversary of the
certification of a computer data center, the owner or
operator of the computer data center shall notify the
department in writing whether the computer data center for
which the certification is requested has satisfied the
requirements prescribed under section 2935-D(3) and (4).
(2) Except as provided in section 2935-D(a.1), in order
to retain a certificate under this subarticle, the owner or
operator of the computer data center shall annually submit
the required footprint report under section 2935-D(a)(3)(iii)
to the department that reflects any updates to the operations
of the facility.
* * *
Section 6. This act shall take effect in 60 days
IMMEDIATELY.
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