New York Assembly Bill A10216

New York 2025-2026 Regular Session

• Introduced: 2/12/26
• Refer: 2/12/26

Caption

Repeals paragraph 37 of subdivision (a) of section 1115 of the tax law and subdivision (y) of section 1115 of the tax law relating to sale and use taxes with respect to data centers

Summary

A10216 would repeal two existing sales and use tax exemptions in section 1115 of the Tax Law that apply to internet data centers. Specifically, it would eliminate the exemption for tangible personal property purchased by internet data centers and the related exemption for services performed on personal property purchased by internet data centers. The bill is drafted as a straightforward repeal measure and would take effect immediately upon enactment. In practical terms, the bill would remove tax preferences currently available to qualifying data centers, making those purchases and services subject to the ordinary state sales and use tax rules unless another exemption applies. Because the bill targets a specific industry category, it would affect data center operators, vendors selling equipment to those facilities, and service providers working on covered property. It would also alter the tax treatment of infrastructure and maintenance costs associated with data center operations in New York.

Impact

The bill would amend New York Tax Law section 1115 by repealing paragraph 37 of subdivision (a) and subdivision (y), thereby narrowing the scope of sales and use tax exemptions available to internet data centers. This would likely increase taxable transactions for data center-related purchases and services, potentially raising state and local tax revenue while increasing operating costs for affected facilities and their suppliers.

Sentiment

There is limited recorded discussion or voting history available for this bill, so no formal committee debate or roll-call sentiment can be identified from the provided materials. Based on the text alone, the bill appears to be a targeted tax policy change rather than a broad reform, and its introduction suggests an intent to revisit or reverse a specialized industry tax benefit.

Contention

The main point of contention is likely the policy tradeoff between preserving tax incentives for data center investment and repealing them to broaden the tax base and increase revenue. Supporters of repeal would likely argue that the exemptions are unnecessary subsidies or create unfair preferential treatment, while opponents would likely contend that the exemptions help attract and retain data center development, jobs, and related investment in New York. No specific committee positions or named opponents/supporters are provided in the record.