
Kentucky Vastly Expands Data Center Tax Incentives
During the 2025 legislative session, the Kentucky General Assembly passed House Bill 775 (“HB 775”) expanding the sales and use tax exemptions for qualified data center projects in Kentucky. Eligible entities engaged in “qualified data center projects” are exempt from sales and use taxes on data center equipment, so long as the owner, operator, or colocation tenant makes the required minimum capital investments. Cassisdy Rosenthal takes a look at the Bill in this Stites & Harbison Client Alert.