Taxes, Sales - As enacted, redefines a "qualified data center," for purposes of sales and use taxes, to include a data center that previously made the required capital investment in excess of $100 million and previously created at least 15 net new full-time employee jobs and the data center is transferred to an affiliate pursuant to a corporate reorganization under the Internal Revenue Code. - Amends TCA Section 67-6-102.

This bill expands the definition of a "qualified data center" in Tennessee to include facilities that have been transferred to an affiliate company through a specific type of corporate reorganization. Under the new rules, a data center that previously met the state's investment and job creation requirements will retain its qualified status even after being sold to a related entity, provided the transfer follows Internal Revenue Code guidelines. The change directly affects large technology companies and their corporate structures by ensuring they continue to receive sales and use tax exemptions for their data center operations after such internal transfers. By updating the Tennessee Code Annotated, the legislation clarifies that these tax benefits persist when a qualifying facility is moved within a corporate family rather than being sold to an unrelated third party.