House rejects amendment to extend data‑center refurbishment tax exemption, passes narrowed bill

The Washington State House voted down an amendment that would have preserved sales-tax exemption certificates for existing data‑center refurbishment contracts and then passed Engrossed Substitute Senate Bill 62 31 on final passage.

Representative Orcutt (20th District) moved amendment 2663, saying the amendment would ‘‘remove the expiration of the certificates, the exemption certificates’’ and protect long‑term refurbishment contracts from an unexpected tax increase that he said would add ‘‘a 7 to 9% higher cost’’ to existing contracts. Orcutt told colleagues the certificates were originally intended to continue through 2048 and called the impending 07/01/2026 expiration ‘‘no time for planning.’'

Opponents said the amendment would undermine the underlying bill. Representative Berg urged a ‘‘no’’ vote, calling the Orcutt amendment a measure that ‘‘really does gut the bill in its entirety.’' Several members, including Representatives Jacobson, Ybarra and Connors, framed the larger dispute around jobs and local investment: Jacobson said the legislature must ‘‘keep our promises’’ to businesses and union workers that built local economies; Ybarra described the ‘‘Quincy miracle,’’ saying data centers brought new jobs and public investments to rural communities.

After debate the House held a roll‑call on amendment 2663; the presiding officer announced the amendment was not adopted. The transcript reports the tally for the amendment vote in an inconsistent form; the presiding officer announced the amendment failed.

Following that vote, supporters of a narrowed exemption urged final passage. Representative Fitzgibbon argued the bill ‘‘narrows an existing tax exemption for data centers’’ and said the sector does not need to be entirely tax‑free to continue locating and creating jobs in Washington. The House then held a final passage roll‑call; the clerk reported 51 yays, 46 nays, 1 excused, and Engrossed Substitute Senate Bill 62 31 was declared passed and immediately transmitted to the Senate.

What’s next: The bill will be transmitted to the Senate for enrollment and transmittal to the governor per normal legislative procedure.