HB 2359

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
1 Amending the act of March 4, 1971 (P.L.6, No.2), entitled "An
2    act relating to tax reform and State taxation by codifying
3    and enumerating certain subjects of taxation and imposing
4    taxes thereon; providing procedures for the payment,
5    collection, administration and enforcement thereof; providing
6    for tax credits in certain cases; conferring powers and
7    imposing duties upon the Department of Revenue, certain
8    employers, fiduciaries, individuals, persons, corporations
9    and other entities; prescribing crimes, offenses and
10    penalties," in computer data center equipment incentive
11    program, further providing for definitions, for application
12    for certification, for eligibility requirements relating to
13    sales and use tax refund program, for notification, for
14    eligibility requirements relating to sales and use tax
15    exemption program and for notification and records.
16    The General Assembly of the Commonwealth of Pennsylvania
17 hereby enacts as follows:
18    Section 1.    Section 2901-D of the act of March 4, 1971
19 (P.L.6, No.2), known as the Tax Reform Code of 1971, is amended
20 by adding a definition to read:
1 Section 2901-D.     Definitions.
2    The following words and phrases when used in this article
3 shall have the meanings given to them in this section unless the
4 context clearly indicates otherwise:
5    "Agency."     As defined in section 102 of the act of February
6 14, 2008 (P.L.6, No.3), known as the Right-to-Know Law.
7    * * *
8    Section 2.      Section 2912-D(3) and (4) of the act are amended
9 and the section is amended by adding a paragraph to read:
10 Section 2912-D.     Application for certification.
11    To be considered for a certification, an owner or operator of
12 a computer data center shall submit to the department an
13 application on a form prescribed by the department that includes
14 the following:
15* * *
16(3)     If the computer data center is to qualify under
17    section [2915-D(1)] 2915-D(a)(1), the following information:
18(i)    The anticipated investment associated with the
19computer data center for which the certification is being
20sought.
21(ii)    An affirmation, signed by an authorized
22executive representing the owner or operator, that the
23computer data center is expected to satisfy the
24certification requirements prescribed in section [2915-
25D(1)] 2915-D(a)(1).
26(4)     If the computer data center is to qualify under
27    section [2915-D(2)] 2915-D(a)(2), an affirmation, signed by
28    an authorized executive representing the owner or operator,
29    that the computer data center has satisfied, or will satisfy,
30    the certification requirements prescribed in section [2915-
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1    D(2)] 2915-D(a)(2).
2(4.1)   If the computer data center is to qualify under
3    section 2915-D(b) and (c), an affirmation, signed by an
4    authorized executive representing the owner or operator, that
5    the owner or operator of the computer data center has
6    satisfied, or will satisfy, the certification requirements
7    prescribed under section 2915-D(b) and (c). Except as
8    provided under section 2915-D(d), in order to retain a
9    certificate under this subarticle, the owner or operator of
10    the computer data center shall annually submit the required
11    footprint report under section 2915-D(b) to the department
12    that reflects any updates to the operations of the facility.
13* * *
14    Section 3.     Sections 2915-D introductory paragraph and 2916-
15 D(a) heading of the act are amended and the sections are amended
16 by adding subsections to read:
17 Section 2915-D.     Eligibility requirements.
18    (a)    Requirements.--A computer data center must meet one of
19 the following requirements, after taking into account the
20 combined investments made and annual compensation paid by the
21 owner or operator of the computer data center or the qualified
22 tenant:
23* * *
24    (b)    Community protections.--On or before the first
25 anniversary of certification, the owner or operator of a
26 computer data center must complete a community protection plan
27 that identifies the following information:
28(1)   The name, address and telephone number of the entity
29    or entities that occupy the commercial data center during its
30    operations.
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1      (2)   Documentation that the owner or operator or
2  authorized representative has performed all of the following
3  prior to the construction of the commercial data center:
4(i)    Provided notification to the municipality or
5      municipalities in which the facility is proposed to be
6      located.
7(ii)    Held at least one public meeting to receive
8      input from community members of the municipality or
9      municipalities in which the facility is proposed to be
10      located, including all measures undertaken to ensure that
11      the public meetings were convenient and accessible to the
12      public.
13(iii)    Consulted with each chief elected official of
14      the municipality or municipalities or the official's
15      designee to discuss the proposed facility and elements of
16      the project design that may impact the community.
17      (3)   A project footprint report, which shall include the
18  following:
19(i)    The total size of the facility measured in
20      square feet.
21(ii)    Any plans or measures undertaken to generate
22      electricity on-site or off-site to reduce impacts on the
23      electric grid.
24(iii)    Estimated average energy consumption per hour
25      during the computer data center's peak demand, including
26      the source or sources of electric supply.
27(iv)    Estimated daily, monthly and annual maximum
28      water consumption, including the discharge rates and
29      volumes, water source and purpose of consumption.
30(v)    Anticipated average annual power usage
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1effectiveness, calculated by dividing the total amount of
2electricity consumed from the computer data center by the
3electricity used to operate the computer data center
4equipment.
5(vi)   Anticipated average annual water usage
6effectiveness, calculated by dividing the total amount of
7water consumed from the computer data center by the
8kilowatt hours of electricity used to operate the
9computer data center equipment.
10    (c)   Nondisclosure agreements.--On or before the first
11 anniversary of certification, the owner or operator of a
12 computer data center must certify that an agreement has not been
13 entered into, or will not be entered into, with an agency, or
14 any entity acting on behalf of an agency, that relates to the
15 construction, development or location of the facility and
16 requires confidentiality, nondisclosure or otherwise restricts
17 the agency from disclosing information to members of the public.
18    (d)   Applicability.--
19(1)   The requirements under subsections (b) and (c) shall
20    not apply to a computer data center with a peak electric
21    demand of less than 10 megawatts.
22(2)   Subsection (b)(2) shall not apply to a commercial
23    data center that has commenced construction prior to the
24    effective date of this subsection.
25(3)   Subsection (c) shall not apply to an owner or
26    operator or qualified tenant holding a certification under
27    this subarticle prior to the effective date of this
28    subsection.
29 Section 2916-D.       Notification.
30    (a)   [Requirements] Investment and compensation requirements
20260HB2359PN3724  - 5 -
1 satisfied.--On or before the fourth anniversary of the
2 certification of a computer data center, the owner or operator
3 of a computer data center shall notify the department in writing
4 whether the computer data center for which the certification is
5 requested has satisfied the requirements prescribed in section
6 2915-D.
7    (a.1)    Other requirements satisfied.--On or before the first
8 anniversary of certification of a computer data center, the
9 owner or operator of a computer data center shall notify the
10 department in writing whether the computer data center for which
11 the certification is requested has satisfied the requirements
12 under section 2915-D(b) and (c).
13    * * *
14    Section 4.  Section 2935-D(a) of the act is amended by adding
15 paragraphs and the section is amended by adding a subsection to
16 read:
17 Section 2935-D.        Eligibility requirements.
18    (a)    General rule.--In order to be certified under this
19 subarticle, an owner or operator of a computer data center must
20 meet all of the following requirements:
21* * *
22(3)   On or before the first anniversary of certification,
23    the owner or operator of the computer data center must
24    complete a community protection plan that identifies the
25    following information:
26(i)    The name of the entity or entities that occupy
27the commercial data center during its operations.
28(ii)    Documentation that the owner or operator or
29authorized representative has performed all of the
30following prior to the construction of the commercial
20260HB2359PN3724  - 6 -
1      data center:
2(A)   Provided notification to the municipality or
3municipalities in which the facility is proposed to
4be located.
5(B)   Held at least one public meeting to receive
6input from community members of the municipality or
7municipalities in which the facility is proposed to
8be located, including all measures undertaken to
9ensure that the public meetings were convenient and
10accessible to the public.
11(C)   Consulted with each chief elected official
12of the municipality or municipalities or the
13official's designee to discuss the proposed facility
14and elements of the project design that may impact
15the community.
16(iii)   A project footprint report, which shall
17      include the following:
18(A)   The total size of the facility measured in
19square feet.
20(B)   Any plans or measures undertaken to generate
21electricity on-site or off-site to reduce impacts on
22the electric grid.
23(C)   Estimated average energy consumption per
24hour during the computer data center's peak demand,
25including the source or sources of electric supply.
26(D)   Estimated daily, monthly and annual maximum
27water consumption, including the discharge rates and
28volumes, water source and purpose of consumption.
29(E)   Anticipated average annual power usage
30effectiveness, calculated by dividing the total
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1amount of electricity consumed from the computer data
2center by the electricity used to operate the
3computer data center equipment.
4(F)   Anticipated average annual water usage
5effectiveness, calculated by dividing the total
6amount of water consumed from the computer data
7center by the kilowatt hours of electricity used to
8operate the computer data center equipment.
9(4)   On or before the first anniversary of certification,
10    the owner or operator of the computer data center must
11    certify that an agreement has not been entered into, or will
12    not be entered into, with an agency, or any entity acting on
13    behalf of an agency, that relates to the construction,
14    development or location of the facility and requires
15    confidentiality, nondisclosure or otherwise restricts the
16    agency from disclosing information to members of the public.
17    (a.1)   Applicability.--
18(1)   The requirements under subsection (a)(3) and (4)
19    shall not apply to a computer data center with a peak
20    electric demand of less than 10 megawatts.
21(2)   Subsection (a)(3)(ii) shall not apply to a
22    commercial data center that has commenced construction prior
23    to the effective date of this subsection.
24(3)   Subsection (a)(4) shall not apply to an owner or
25    operator or qualified tenant holding a certification under
26    this subarticle prior to the effective date of this
27    subsection.
28    * * *
29    Section 5.    Section 2936-D(a) of the act is amended and the
30 section is amended by adding a subsection to read:
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1 Section 2936-D.    Notification and records.
2    (a)   [Requirements] Investment and compensation requirements
3 satisfied.--On or before the fourth anniversary of the
4 certification of a computer data center, the owner or operator
5 of the computer data center shall notify the department in
6 writing whether the computer data center for which the
7 certification is requested has satisfied the requirements
8 prescribed under section 2935-D(a).
9    (a.1)   Other requirements satisfied.--
10(1)   On or before the first anniversary of the
11    certification of a computer data center, the owner or
12    operator of the computer data center shall notify the
13    department in writing whether the computer data center for
14    which the certification is requested has satisfied the
15    requirements prescribed under section 2935-D(3) and (4).
16(2)   Except as provided in section 2935-D(a.1), in order
17    to retain a certificate under this subarticle, the owner or
18    operator of the computer data center shall annually submit
19    the required footprint report under section 2935-D(a)(3)(iii)
20    to the department that reflects any updates to the operations
21    of the facility.
22    * * *
23    Section 6.     This act shall take effect in 60 days  <--
24 IMMEDIATELY.  <--
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