An Act amending the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, in tax credit and tax benefit administration, further providing for definitions; in computer data center equipment incentive program, providing for certification prohibition; providing for Governor's Responsible Infrastructure Development certification and standards; and imposing duties.

PRINTER'S NO. 1886
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No. 1384
Session of
2026
INTRODUCED BY KANE, SANTARSIERO, TARTAGLIONE AND COSTA,
JULY 10, 2026
REFERRED TO FINANCE, JULY 10, 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 tax credit and tax benefit administration,
further providing for definitions; in computer data center
equipment incentive program, providing for certification
prohibition; providing for Governor's Responsible
Infrastructure Development certification and standards; and
imposing duties.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. The definition of "tax benefit" in section 1701-
A.1 of the act of March 4, 1971 (P.L.6, No.2), known as the Tax
Reform Code of 1971, is amended to read:
Section 1701-A.1. 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:
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* * *
"Tax benefit." For purposes of this article, a tax benefit
authorized under any of the following:
(1) Article XVII-A.
(2) Article XVIII-C.
(3) Article XIX-B.
(4) Article XIX-D.
(5) Article XXIX-C.
(6) Article XXIX-D.
(6.1) Article XXIX-D.1.
(7) The act of October 6, 1998 (P.L.705, No.92), known
as the Keystone Opportunity Zone, Keystone Opportunity
Expansion Zone and Keystone Opportunity Improvement Zone Act.
* * *
Section 2. The act is amended by adding a section to read:
Section 2902-D. Certification prohibition.
The department may not certify any computer data center under
this article after the effective date of this section.
Section 3. The act is amended by adding an article to read:
ARTICLE XXIX-D.1
GOVERNOR'S RESPONSIBLE INFRASTRUCTURE
DEVELOPMENT CERTIFICATION AND STANDARDS
Section 2901-D.1. Scope of article.
This article relates to the Governor's Responsible
Infrastructure Development (GRID) Certification and Standards.
Section 2902-D.1. 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:
"Alternative compliance payment." A per-megawatt-hour
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payment at the alternative compliance payment rate made to PEDA
by a computer data center if the computer data center elects to
satisfy its clean firm energy procurement requirement under
section 2903-D.1(a)(5)(vii)(B) through payment in lieu of
procurement.
"Alternative compliance payment rate." A rate expressed in
dollars per megawatt-hour determined by the department annually
by doubling the estimated average levelized cost of electricity
from solar photovoltaic technology, as published by the United
States Energy Information Administration's most recent Annual
Energy Outlook.
"Clean firm energy." Energy derived from nuclear energy,
hydroelectric power, including pumped storage, geothermal
energy, fuel cells, solar energy, including solar energy paired
with storage resources, wind energy, including wind energy
paired with storage resources, clean hydrogen-fueled energy
generation, battery energy storage systems and long-duration
storage resources that meet all of the following:
(1) The resource is dispatchable or capable of providing
firm service so that the resource can deliver electricity on
demand with an availability factor consistent with standards
established by the commission.
(2) The resource constitutes incremental capacity,
including any of the following:
(i) Placement in service of a new clean firm energy
generation facility on or after January 1, 2025.
(ii) An uprate or efficiency improvement at an
existing clean firm energy generation facility completed
on or after January 1, 2025, that increases accredited
capacity or net output.
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(iii) Placement in service of a battery energy
storage system on or after January 1, 2025, that provides
at least two hours of continuous discharge, or another
duration determined by the commission to provide reliable
capacity value.
(iv) Placement in service of a long-duration storage
resource on or after January 1, 2025, that provides not
less than four hours of continuous discharge capability
and firm service as determined by the commission.
"Clean firm energy generation." Electricity generated from
clean firm energy. The term does not include a battery energy
storage system or long-duration storage resource. The term
includes solar energy paired with storage resources and wind
energy paired with storage resources.
"Clean hydrogen-fueled energy generation." Hydrogen produced
through a process with a life cycle greenhouse gas emissions
rate of less than four kilograms of carbon dioxide equivalent
per kilogram of hydrogen.
"Commission." The Pennsylvania Public Utility Commission.
"Common parent." The most senior corporation owning or
controlling a unitary business that includes an owner or
operator.
"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 closed-loop cooling
systems, towers and other temperature control infrastructure.
"Computer data center equipment." Equipment located on the
same land parcel as the computer data center that is used to
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outfit, operate or benefit a computer data center and component
parts, installations, refreshments, replacements and upgrades to
the equipment, notwithstanding whether any of the equipment is
affixed to or incorporated into real property, including:
(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 battery energy storage devices,
uninterruptible energy supplies, 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 the computer
servers or data storage systems and other components of the
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 enabling 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 in this definition, including components
used in the manufacturing of modular data centers.
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(7) Other tangible personal property that is essential
to the operations of a computer data center.
"Department." The Department of Revenue of the Commonwealth.
"Environmental justice community." A geographic area
characterized by increased pollution burden and vulnerable
populations based on demographic, economic, health and
environmental data and duly identified by the Department of
Environmental Protection.
"Facility." One or more parcels of land located in this
Commonwealth and any structures and personal property contained
on the land.
"GRID." The Governor's Responsible Infrastructure
Development.
"Incremental capacity." Additional capacity or additional
net energy output from an energy resource in an amount
determined based on the unforced capacity value assigned to the
resource under PJM's applicable capacity accreditation rules
that meets all of the following:
(1) Results from the placement in service of a new
resource on or after January 1, 2025.
(2) Results from an uprate or efficiency improvement
completed on or after January 1, 2025, at an existing clean
firm energy generation resource or long-duration storage
resource, to the extent that the improvement increases
accredited capacity or net output available to the grid.
(3) For a battery energy storage system or long-duration
storage resource, results from the installation of new
storage equipment or the expansion or repowering of an
existing storage facility completed on or after January 1,
2025, that increases discharge duration, rated capacity or
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firm service capability.
(4) Is verified and certified by the commission as
representing additional accredited capacity or additional net
energy output that would not have been available to the bulk
electric system in this Commonwealth absent the investment
identified under paragraph (1), (2) or (3).
"Locational deliverability area." A geographic area within
the PJM region that has limited transmission capability to
import capacity to satisfy such area's reliability requirement
as specified in Reliability Assurance Agreement, Schedule 10.1.
PJM Intra-PJM Tariffs, OATT, Definitions - L - M - N, 19.0.0 as
accepted by the Federal Energy Regulatory Commission docketed at
ER20-646-000 and any updated Federal Emergency Regulatory
Commission docketed schedule.
"New investment." Construction, expansion or build out of
data center space at either a new or an existing computer data
center on or after the effective date of this section, and the
purchase and installation of computer data center equipment,
except for items described under paragraph (4) of the definition
of computer data center equipment.
"Owner or operator." The term includes a single entity,
multiple entities or affiliated entities that own or operate a
computer data center.
"PEDA." The Pennsylvania Energy Development Authority.
"Pennsylvania climate change connectivity." A geographic
area recognized as important for wildlife habitat connectivity
identified by the Pennsylvania Game Commission Wildlife Action
Plan Conservation Opportunity Area Tool.
"PJM Interconnection, L.L.C." or "PJM." The regional
transmission organization approved by the Federal Energy
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Regulatory Commission to coordinate wholesale electricity
markets and transmission operations within a geographic region.
"Proof of work crypto-asset mining." The process of
performing computations to add a valid block of data to a
blockchain, excluding computations required to validate
individual transactions, typically in exchange for a reward or
fee.
"Qualification period." Any of the following:
(1) With respect to the owner or operator of a computer
data center certified under this article, a period of time
beginning on the date of tax exemption certification of the
computer data center and expiring at the end of the tenth
full calendar year following the calendar year in which the
owner or operator filed an application for certification.
(2) With respect to a qualified tenant of the owner or
operator of a computer data center certified under this
article, a period of time beginning on the date that the
qualified tenant enters into an agreement concerning the use
or occupancy of the computer data center and expiring at the
earlier of the expiration of the term of the agreement or the
end of the tenth full calendar year following the calendar
year in which the qualified tenant enters into the agreement.
"Qualified tenant." An entity that contracts with the owner
or operator of a computer data center that is certified under
this article to use or occupy part of the computer data center
for at least 100 kilowatts per month for two or more years.
"Solar ready." A structure that allows for solar
photovoltaic panels to be installed on at least 40% of the roof
area, including preinstalled conduit, and provides sufficient
space to install inverters and other necessary equipment.
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"Tax exemption." The tax exemption provided under section
2905-D.1.
"Telecommunications provider." A provider of
telecommunications services as defined in 61 Pa. Code § 60.20
(relating to telecommunications service).
"Tenant." An entity that contracts with the owner or
operator of a computer data center to use or occupy part of the
computer data center.
"Tier 4 equivalent." A combination of an electrical
generator and an engine mounted together to form a single piece
of equipment, equipped with all of the following:
(1) A selective catalytic reduction system or equivalent
for nitrogen oxides control.
(2) A diesel oxidation catalyst system or equivalent for
carbon monoxide control.
(3) A diesel particulate filter or equivalent for
particulate matter control.
"Unitary business." A single economic enterprise that is
made up either of separate parts of a single business entity or
of a commonly controlled group of business entities that are
sufficiently interdependent, integrated and interrelated through
their activities so as to provide a synergy and mutual benefit
that produces a sharing or exchange of value among them and a
significant flow of value to the separate parts.
"Viewshed." The geographical area of a landscape or
environment that is visible from one or more specific vantage
points.
Section 2903-D.1. Application for GRID certification.
(a) Contents.--To be considered for GRID certification, the
owner or operator of a data center shall submit to the
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department an application on a form prescribed by the department
that includes all of the following:
(1) The owner or operator's name, address and telephone
number.
(2) The address of the site where the proposed data
center will be located including, if applicable, information
sufficient to identify a specific portion of a facility
comprising the data center.
(3) The name of the common parent of any unitary
business that will:
(i) be responsible for management and operation of
the GRID project on a permanent basis after the facility
commences commercial operation; or
(ii) utilize at least 50% of the facility's
capacity.
(4) Building size in square feet and campus acreage.
(5) An energy plan that includes all of the following:
(i) Expected energy generation or storage facilities
that will be co-located with the GRID project, if any.
(ii) Percent of electricity used from nonemitting
sources and an explanation of how the electricity will be
procured.
(iii) Expected average annual power usage
effectiveness.
(vi) Expected heat reuse at a connected or co-
located facility.
(vii) A plan detailing the owner or operator's plan
to build, bring or buy incremental capacity including:
(A) sufficient electricity to meet its full
energy demands from incremental capacity located
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within the same PJM locational deliverability area as
the proposed GRID project, or if the incremental
capacity is not located within the same PJM
locational deliverability area as the GRID project,
submit documentation to demonstrate that the new
generation or storage resource is deliverable to the
GRID project and incremental to existing supply,
through contracts, interconnection or other
verifiable means, consistent with PJM and utility
tariff structures; and
(B) electricity procured from incremental clean
firm energy resources located within this
Commonwealth in an amount not less than the following
percentages of the GRID project's annual electricity
consumption:
(I) Beginning January 1, 2027, and ending
January 1, 2030, 10%.
(II) Beginning January 1, 2030, and ending
January 1, 2035, 14.5%.
(III) Beginning January 1, 2035, 32%.
(IV) A GRID project that does not procure
incremental clean firm energy sufficient to
satisfy the required amounts under subclause (I),
(II) or (III) in a given year shall make an
alternative compliance payment to PEDA.
(viii) As follows:
(A) A commitment to pay, through base rates,
surcharges or other ratemaking mechanisms, costs
caused in whole or in part by the interconnection,
service or load of a GRID project, including costs
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associated with emergency ancillary services,
transmission, distribution, network upgrades or
dedicated facilities if:
(I) the costs are directly attributable to
the provision of electric service to the GRID
project; or
(II) the costs would not have been incurred
but for the electricity demand of the GRID
project.
(B) Compliance with this subparagraph may be
demonstrated if a GRID project presents a copy of its
Electronic Service Agreement, showing that it
purchases electricity from an electric distribution
company under an electric service tariff with terms:
(I) no less stringent than those detailed in
the commission's final Large Load Customer Model
Tariff (Docket M-2025-3054271); and
(II) further addressing the GRID project
facility's contributions to embedded system
costs.
(ix) Submittal of filings to the commission and
adherence to commission regulations governing commercial
data centers.
(x) Design and construction of a GRID project
facility with a floor area exceeding 100,000 square feet
in a solar ready manner that facilitates and optimizes
the installation of solar photovoltaic panels on
unoccupied roof area of the building or other areas of
the building.
(6) A community outreach plan that includes all of the
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following:
(i) A commitment to notify and consult with the
public in the area in which the GRID project will be
located by:
(A) holding publicly accessible meetings;
(B) consulting with municipal leaders in the
host jurisdiction and potentially affected adjoining
jurisdictions during GRID project development; and
(C) accepting public comments on design
decisions including viewshed impact mitigation, noise
impact mitigation and building façade design.
(ii) A detailed timeline and number of planned
publicly accessible meetings in the jurisdiction in which
the GRID project will be located that the owner or
operator will hold to inform the public about the GRID
project in addition to any public meeting required by
law.
(7) A community benefit plan including a commitment to
do all of the following:
(i) Make at least $250,000,000 of cumulative new
investment.
(ii) Create at least 200 jobs during the
construction phase of development, each paying the
applicable prevailing minimum wage and benefit rates as
determined for each applicable craft or classification by
the Department of Labor and Industry under act of August
15, 1961 (P.L.987, No.442), known as the Pennsylvania
Prevailing Wage Act.
(iii) Create 50 new jobs each paying at least 125%
of Pennsylvania's average Statewide wage on or before the
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fourth anniversary of GRID certification.
(iv) Pay annual compensation of at least $1,500,000
to employees employed full time at the GRID project site
for each year of the certification after the fourth
anniversary.
(v) Provide a hiring plan for recruiting and
training local workers, including local workforce
participation in site preparation and site construction,
and use registered apprenticeship programs and skilled
construction labor.
(vi) Engage in good faith discussions with the
jurisdiction in which the GRID project will be located to
develop a community benefit agreement that addresses the
following:
(A) Detail about planned development phases.
(B) Noise, vibration and lighting study
requirements and mitigation techniques.
(C) A traffic study.
(D) Air quality protection requirements
consistent with Federal and State law.
(E) A plan for addressing aesthetic concerns,
including landscaping or visual buffers.
(F) An emergency management plan that addresses
training, coordination and reasonable resource needs
of the emergency management professionals and first
responders responsible for the jurisdiction in which
the GRID project will be located.
(G) Financial contributions toward local
priorities.
(H) Annual reporting to the jurisdiction in
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which the GRID project will be located addressing
community benefit agreement progress.
(I) Other items as determined by the
jurisdiction in which the GRID project will be
located.
(8) A regional benefits plan, including a commitment to
do all of the following:
(i) Identify the regional impact area, which shall
include all of the following:
(A) Each municipality located within a 25-mile
radius of the GRID project.
(B) Each county located within a 25-mile radius
of the GRID project.
(C) Any school district, emergency service
provider or water, sewer or transportation authority
located within a 25-mile radius of the GRID project
whose infrastructure or service area is reasonably
expected to be affected by the GRID project.
(ii) Provide documentation that the owner or
operator will deliver written notice to each political
subdivision and public authority identified under
subparagraph (i) and offer at least one informational
meeting to each entity for the purpose of receiving
comments on anticipated regional impacts.
(iii) Summarize expected regional impacts, including
traffic, emergency services, water and wastewater use,
storm water, air quality and noise, based on studies
prepared for the community benefit agreement under
paragraph (7).
(iv) Describe specific mitigation actions the owner
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or operator will undertake to address regional impacts
identified under subparagraph (iii). Mitigation actions
may include:
(A) Transportation improvements located outside
the host jurisdiction.
(B) Support for county level emergency
management planning.
(C) Regional air quality monitoring or
environmental restoration.
(D) Watershed or storm water improvements.
(E) Other commitments identified during
consultation with regional authorities.
(v) Provide financial contributions to support
projects or services that produce measurable benefits
within the regional impact area. Contributions may be
made directly to affected municipalities, school
districts, emergency service providers or public
authorities.
(9) A sustainability plan that includes all of the
following:
(i) Details regarding how the owner or operator will
deploy best available technology to limit water and
energy consumption by the data center by obtaining
certification under a recognized performance-based
facility standard system or systems applicable to data
centers addressing energy and water use as adopted by the
department.
(ii) A commitment to minimize local air pollutants
by doing all of the following:
(A) Utilizing a backup energy system that relies
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on zero-emission energy generation or storage or
backup generators with emissions equal to or less
than the emissions achieved by a Tier 4 or Tier 4
equivalent generator.
(B) Implementing operational practices such as
reduced generator runtime and limits on backup
generation utilization to emergency use and limited
testing and maintenance consistent with Federal and
State air quality laws and regulations.
(C) Including at least three air quality
monitors at the site providing continuous record of
the air quality.
(D) Creating a detailed plan for recordkeeping
of the air quality, which shall be made available to
government or private entities upon request.
(iii) For GRID projects located in an area
identified as Pennsylvania climate change connectivity,
an explanation of defined measures to minimize and
ameliorate impacts to wildlife habitat or offset net loss
of habitat and ecological function and a commitment that
the owner or operator shall make good faith efforts to
fund and collaborate with private conservation and public
resource entities to support the monitoring of impacts to
land, water and biological resources.
(iv) (A) For GRID projects located in an
environmental justice community, including an
explanation of defined measures to offset any
increased environmental exposures or net
environmental effects and making good faith efforts
to fund and collaborate with municipal, civic and
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private industries to positively impact the
population characteristics of the environmental
justice community.
(B) The good faith efforts made under clause (A)
may incorporate the commitments and plans required
for the application.
(10) A water plan that includes all of the following:
(i) Anticipated waste or treated water discharges,
if any.
(ii) Estimated average annual water consumption.
(iii) Anticipated maximum daily water demand.
(iv) Source of water to be utilized, including the
water quality standard use designation under 25 Pa. Code
Ch. 93 (relating to water quality standards) of the
source of water, if any.
(v) Expected average annual water usage
effectiveness.
(vi) A commitment to utilize the best available
technologies and other efficiency measures to mitigate
impacts to the quantity or quality of water for other
uses or users, including designated and existing uses
under 25 Pa. Code Ch. 93.
(vii) For GRID projects that have a physical
footprint, point source of water withdrawal or point
source of storm water discharge located within a
watershed designated as High Quality Waters under 25 Pa.
Code Ch. 93, the watershed of a designated public water
system source under 25 Pa. Code Ch. 109 (relating to safe
drinking water) or 1,000 feet of a tributary which flows
into a public water system source under 25 Pa. Code Ch.
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109, a hydrogeological study shall be submitted to the
department. The following shall apply:
(A) The hydrogeological study shall include:
(I) An assessment of baseline water quality
at all relevant tributary monitoring points.
(II) Consumptive use and storm water
discharge on both surface water and groundwater
sources.
(III) Identification of specific mitigation
measures to protect water sources.
(B) The study shall be prepared by a
professional geologist with relevant experience in
hydrogeological analysis and licensed in this
Commonwealth.
(C) The department shall transmit the study to
the Department of Environmental Protection within 10
days of receipt of the study.
(D) The Department of Environmental Protection
shall have 45 days to review the study and provide
written comments to the department on whether the
study was conducted in a satisfactory manner.
(E) The department may not issue a GRID
certification to GRID projects located in a watershed
designated as Exceptional Value Waters under 25 Pa.
Code Ch. 93.
(viii) If the GRID project is within the
jurisdiction of a river basin commission, documentation
that the owner or operator has received approval for
water withdrawal from the relevant river basin
commission.
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(ix) If the GRID project has a physical footprint,
point of source of water withdrawal or point of source of
storm water discharge located within an area described
under subparagraph (vii), the owner or operator shall
commit to performing baseline water quality monitoring at
the applicable tributary points utilized for water
withdrawal or discharge, as approved by the Department of
Environmental Protection, prior to the commencement of
construction and any ground disturbance. The commitment
under this subparagraph shall include the following:
(A) Upon the commencement of commercial
operations, the owner or operator shall submit annual
water quality reporting data from the approved
tributary points to the Department of Environmental
Protection for review.
(B) Upon review of the annual reporting data,
the Department of Environmental Protection may
require corrective action if the report identifies
material degradation of the water source at the
applicable tributary points.
(C) If the material degradation of the water
source is not corrected by the owner or operator to
the satisfaction of the Department of Environmental
Protection, the department shall revoke a GRID
certification of a computer data center issued under
this article.
(11) A noise and vibration mitigation plan that includes
all of the following:
(i) Documentation that the GRID project will comply
with an applicable local law, ordinance or regulation
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relating to sound or vibration limits, including a
required permit, study or certification demonstrating
compliance.
(ii) If the jurisdiction in which the GRID project
will be located does not have an applicable zoning
ordinance relating to noise or vibration standards, a
description of the mitigation measures that the owner or
operator will take to mitigate noise and vibration
impacts on the surrounding community. The description
shall include any of the following designed to minimize
noise impacts:
(A) Operational practices.
(B) Engineering controls.
(C) Monitoring activities.
(b) Acceptance.--The department shall begin accepting
applications for GRID certification no later than 30 days after
the effective date of this section.
Section 2904-D.1. Review of applications.
After receiving a complete and correct application for GRID
certification under section 2903-D.1, the department shall
review the application and issue a written certification that
the computer data center qualifies for the GRID certification or
provide written reasons for its denial.
Section 2905-D.1. Tax exemption.
(a) Exemption.--The tax imposed under Article II shall not
be imposed upon the sale at retail or use of computer data
center equipment purchased for installation in a GRID certified
computer data center, if purchased by any of the following:
(1) An owner or operator of a computer data center
certified under this article.
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(2) A qualified tenant of a computer data center
certified under this article.
(b) Exemption period.--A tax exemption approved under this
article shall apply during the qualification period.
(c) Exclusions.--The following shall not qualify for a tax
exemption:
(1) A telecommunications provider's computer data center
that does not have retail or wholesale customers being billed
or paying for services and that provides a majority of
services for internal use or use by the telecommunications
provider's subsidiaries.
(2) Computer data center equipment used by the certified
computer data center for any of the following purposes:
(i) Generating electricity for resale purposes to a
power utility.
(ii) Generating, providing or selling more than 5%
of its electricity outside of the certified computer data
center.
(iii) Proof of work for crypto-asset mining as
determined by the department.
(3) Any item of tangible personal property for use both
inside and outside the computer data center.
(4) Primary electric generation equipment.
Section 2906-D.1. GRID ready report.
(a) Requirement.--Prior to commencing commercial operations,
a GRID project must submit a GRID ready report, verified by a
qualified third-party entity, to the department for review
providing updated information regarding any material change to
any item required in the application for GRID certification
under section 2903-D.1 and must specifically report or provide:
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(1) Confirmation that any changes to the energy plan
have not imposed additional costs on other utility
ratepayers.
(2) Confirmation that it has fully implemented its
community outreach plan.
(3) Confirmation that it has made the cumulative new
investments and created the jobs required in its community
benefit plan, including its executed community benefit
agreement.
(4) The status of compliance with its sustainability
plan commitments.
(5) The status of compliance with its water plan
commitments.
(6) Confirmation that it has submitted all documentation
required under its noise and vibration mitigation plan and,
if applicable, the status of compliance with the mitigation
measures specified under section 2903-D.1(a)(11)(ii).
(7) Confirmation that its regional benefits plan has
been fully implemented.
(b) Failure to meet commitments.-- Except as provided under
section 2909-D.1(e), if the department determines that the
commitments of section 2903-D.1 have not been satisfied, the
department shall revoke the GRID certification of a computer
data center.
Section 2907-D.1. Annual reporting.
(a) Requirement.--The owner or operator of a computer data
center certified under this article must file on an annual basis
with the department, on a form prescribed by the department, a
report verified by a qualified third-party entity, including all
of the following:
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(1) Documentation that the computer data center is
continuing to meet the conditions in its application filed
under section 2903-D.1.
(2) The amount and source of water used by the computer
data center and a certification that its water use has not
adversely impacted the quantity or quality of water for other
uses or users including designated and existing uses under 25
Pa. Code Ch. 93 (relating to water quality standards).
(3) The amount of electricity used by the computer data
center.
(4) The total amount of sales or use tax exempted under
this article.
(5) An annual certification signed by an officer of the
owner or operator that identifies whether the owner or
operator completed each commitment contained in the community
benefit plan required under section 2903-D.1(a)(7) during the
preceding year and, if not, identifies each commitment that
remains in progress and the steps the owner or operator is
taking to complete each commitment.
(6) Any other information required by the department.
(b) Fourth anniversary.--On or before the fourth anniversary
of GRID certification, the owner or operator or qualified tenant
of a computer data center must show that it met the requirements
of section 2903-D.1(a)(6)(i).
(c) Public posting.--The department shall make the
information submitted under subsection (a)(5) available on the
department's publicly accessible Internet website. The
department shall withhold from public disclosure proprietary
information consistent with section 2911-D.1.
(d) Municipal comments.--A municipality in which a GRID
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project is located, or a municipality or public authority
located within 25 miles of the GRID project, may submit written
comments to the department if the municipality or public
authority has reason to believe that the owner or operator is
not satisfying one or more commitments contained in the
community benefit agreement. The department shall review the
comments and, as necessary, request additional information from
the owner or operator to evaluate compliance .
Section 2908-D.1. Compliance.
(a) Reporting.--An owner or operator or qualified tenant
eligible for GRID certification shall comply with reporting,
filing and compliance requirements under this act.
(b) Tax laws.--An owner, operator or qualified tenant may
not receive a certification under this article unless the owner,
operator or qualified tenant is in full compliance with State
tax laws.
Section 2909-D.1. Revocation of certification.
(a) Revocation.-- Except as provided under subsection (e), if
the department determines that the requirements of this article
have not been satisfied, the department shall revoke a GRID
certification of a computer data center issued under this
article.
(b) Appeal.--The owner or operator of the computer data
center may appeal a GRID certification revocation. Appeals filed
under this section shall be governed by Article II.
(c) Recapture.--If a GRID certification is revoked under
this section, the qualification period of any owner or operator
or qualified tenant of the computer data center shall expire and
the department shall recapture from the owner or operator or
qualified tenant all or part of the tax exemption received by
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the owner or operator or qualified tenant under this article.
The department may give special consideration or allow a
temporary exemption from recapture of the tax exemption if there
is extraordinary hardship due to factors beyond the control of
the owner or operator or qualified tenant. The department may
require the owner or operator or qualified tenant to file
appropriate amended tax returns in order to reflect any
recapture of the tax exemption.
(d) Limitation on assessment.--Notwithstanding the
limitation on assessment and collection in section 258, the
department shall assess any tax determined not to be properly
exempted under this article within five years from the date an
owner or operator or qualified tenant of a computer data center
purchases property exempt from a tax. A taxpayer may consent to
an extension of the period as set forth in section 261.
(e) Corrective action plan.--Before the department revokes a
GRID certification on the basis that an owner or operator failed
to comply with a community benefit commitment under section
2903-D.1(a)(7), the department shall provide written notice to
the owner or operator that identifies the deficiency and
provides the owner or operator with not less than 60 days to
submit and implement a corrective action plan to address the
deficiency. The department shall revoke the GRID certification
if the department determines that the owner or operator failed
to submit or implement the corrective action plan or failed to
address the deficiency under the corrective action plan.
Section 2910-D.1. Regulations, implementation and guidelines.
(a) Authority.--The department may promulgate regulations
necessary to carry out the provisions of this part.
(b) Temporary regulations.--
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(1) In order to facilitate the prompt implementation of
this article, the department may promulgate temporary
regulations that shall expire no later than three years
following the publication of the temporary regulations. The
department may promulgate temporary regulations not subject
to:
(i) Section 612 of the act of April 9, 1929
(P.L.177, No.175), known as The Administrative Code of
1929.
(ii) Sections 201, 202, 203, 204 and 205 of the act
of July 31, 1968 (P.L.769, No.240), referred to as the
Commonwealth Documents Law.
(iii) Sections 204(b) and 301(10) of the act of
October 15, 1980 (P.L.950, No.164), known as the
Commonwealth Attorneys Act.
(iv) The act of June 25, 1982 (P.L.633, No.181),
known as the Regulatory Review Act.
(2) The department's authority to adopt temporary
regulations under paragraph (1) shall expire three years
after the effective date of this section. Regulations adopted
after this period shall be promulgated as provided by law.
(c) Implementation and guidelines.--The department shall
work with other agencies and offices as necessary to implement
this article and publish written guidelines and prescribe forms
and procedures as necessary to carry out the provisions of this
article.
Section 2911-D.1. Confidential information.
Notwithstanding section 731 of the act of act of April 9,
1929 (P.L.343, No.176), known as The Fiscal Code, or the
confidentiality provisions of this act, information contained in
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the application form described under section 2903-D.1 and any
report required under sections 2906-D.1 and 2907-D.1, including
information concerning the identity of a qualified tenant, shall
be public. An applicant may request that trade secret,
confidential proprietary information or information which
creates a reasonable likelihood of endangering the applicant, as
defined in section 102 and 708(b)(3) of the act of February 14,
2008 (P.L.6, No.3), known as the Right-to-Know Law, be withheld
from disclosure. Disclosure shall be at the discretion of the
department.
Section 2912-D.1. Maintenance of records.
(a) Duties.--The owner or operator or qualified tenant
shall:
(1) Maintain detailed records of investments created by
the computer data center, including costs of buildings and
computer data center equipment and tax exemptions received by
the owner or operator or qualified tenant.
(2) Maintain purchase journals for examination by the
department.
(b) Retention.--The records required under subsection (a)
shall be kept available at all times for inspection by
authorized personnel of the department and shall be retained if
the contents of the records may become material in the
administration of this article.
Section 2913-D.1. List of tenants.
An owner or operator of a certified computer data center
shall provide, to the extent permissible under Federal law, the
department with a list of qualified tenants, including the
commencement and expiration dates of each qualified tenant's
agreement to use or occupy part of the GRID certified computer
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data center. The list shall be provided to the department
annually and upon request by the department.
Section 2914-D.1. Sale or transfer.
Except as provided under section 2908-D.1, a computer data
center shall retain its GRID certification notwithstanding a
transfer, sale or other disposition, directly or indirectly, of
the computer data center.
Section 2915-D.1. Certificate of exemption.
(a) Application.--An owner or operator or qualified tenant
of a computer data center certified under this article may apply
for a sales and use tax GRID certificate of exemption in a
manner prescribed by the department on or before October 1,
2027, and renew each October 1 thereafter.
(b) Notification.--No later than 60 days after receipt of a
correct and complete application under subsection (a) for a
sales and use tax GRID certificate of exemption, the department
shall issue a sales and use tax GRID certificate of exemption to
each applicant approved by the department.
(c) Exempt purchases.--The owner or operator or qualified
tenant of a certified computer data center shall prepare and
deliver a properly executed sales and use tax certificate of
exemption to a vendor from which the owner or operator or
qualified tenant purchases exempt computer data center
equipment.
(d) Continued compliance.--
(1) The owner or operator or qualified tenant of a GRID
certified computer data center eligible for a sales and use
tax GRID certificate of exemption shall comply with the
reporting, filing and compliance requirements under this
article.
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(2) An owner, operator or qualified tenant may not
receive a sales and use tax GRID certificate of exemption
under this article unless the owner, operator or qualified
tenant is in full compliance with State tax laws.
Section 2916-D.1. Limitation.
(a) Prohibition.--The department may not certify any
computer data center under this article after December 31, 2032.
(b) Eligibility.--Except if certified under Article XXIX-D
prior to February 3, 2026, a data center shall not be eligible
for tax benefits associated with Article XIX-B, Article XVIII-C
or the act of October 6, 1998 (P.L.705, No.92), known as the
Keystone Opportunity Zone, Keystone Opportunity Expansion Zone
and Keystone Opportunity Improvement Zone Act.
Section 2917-D.1. Zoning.
Nothing in this article shall affect the zoning authority of
a municipality.
Section 4. This act shall take effect immediately.
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