South Dakota legislation · 101st Legislature (2026)
South Dakota HB1005: provide a sales and use tax exemption for goods and services related to data center operations.
Status: Failed, February 4, 2026
What the bill says
An Act to provide a sales and use tax exemption for goods and services related to data center operations.
From the introduced text, December 26, 2025:
An Act to provide a sales and use tax exemption for goods and services related to data center operations. Be it enacted by the Legislature of the State of South Dakota: Section 1. That a NEW SECTION be added to chapter 10-45: [ADDED: The terms used in this Act mean:] [ADDED: (1) "Computer software," programs and other operating information used solely for the maintenance and operation of a qualified data center;] [ADDED: (2) "Data center," a centralized repository for the storage, management, dissemination, and processing of electronic data and information, except for that which relates to the mining of digital currency;] [ADDED: (3) "Enterprise information technology equipment," the following products used solely for the maintenance and operation of a qualified data center:] [ADDED: (a) Computer hardware, servers, storage arrays, backup systems, disaster recovery equipment, routers, cooling systems, temperature control infrastructure, network equipment, switches, load balancers, firewalls, network cabling, edge devices, network monitoring equipment, water treatment systems, chilled water equipment, economizers,] [ADDED: ] [ADDED: cooling towers, and piping and pump equipment for cooling towers;] [ADDED: (b) Power infrastructure for the management of electricity, dedicated distribution equipment, backup power generation systems, battery systems, construction materials for structures unique to data centers or other related infrastructure excluding primary electric generation service, transmission, or utility distribution infrastructure;] [ADDED: (c) Racking systems, raised flooring, cabling, …
Sponsors
- Casey Crabtree (R, SD-008) · primary sponsor
- Kent Roe (R, HD-004) · primary sponsor
- Tim Czmowski (R, HD-006)
- Nick Fosness (R, HD-001)
- David Kull (R, HD-002)
- Jim Mehlhaff (R, SD-024)
- Paul Miskimins (R, 20)
- Tim Reed (R, 07)
- Tim Reisch (R, HD-008)
- Stephanie Sauder (R, SD-004)
- William Shorma (R, HD-017)
- Kevin Van Diepen (R, HD-022)
Latest actions
- : Deferred to the 41st legislative day
- : Scheduled for hearing
- : First read in House and referred to State Affairs
Votes
- Deferred to the 41st legislative day (February 4, 2026): 9 yea, 3 nay, passed
Subjects: Technology, Administrative Procedure, Retail Sales and Service Tax, Taxation, Data Centers, Tax Exemptions and Refunds
Common questions
- What is HB1005?
- HB1005 is a bill in the South Dakota Legislature (101st Legislature (2026)): provide a sales and use tax exemption for goods and services related to data center operations.
- What does HB1005 do?
- In its own words: An Act to provide a sales and use tax exemption for goods and services related to data center operations.
- What is the status of HB1005?
- Failed as of February 4, 2026. Latest action: Deferred to the 41st legislative day (February 4, 2026).
- Who sponsored HB1005?
- Casey Crabtree (R, SD-008), with 11 co-sponsors.
- Where is the official record for HB1005?
- On the South Dakota Legislature website: https://sdlegislature.gov/Session/Bill/26317
Source: official South Dakota record. Tracked by Delilah, AI for legislation across all 50 states and Congress.