Legislation that will extend data center tax breaks that were passed in 2010 is moving through Washington State Senate and House of Representatives. The Senate Ways and Means Committee is expected to take action on one such bill within the next several days, Columbia Basin Herald reports.

The law currently on the books precludes any projects poised to start after 30 June 2011 from receiving tax exemptions on IT and electrical equipment. The temporary law, exempting companies from equipment purchase taxes until 2018, took effect in April 2010.

The bill to extend the tax breaks has yet to be heard in the House.

John Sabey, president of data center builder and operator Sabey Data Center Properties, testified in front of the Senate committee in favor of the extension. He said a number of companies’ decision to build data centers in the state hinged on the current law’s passage.

"We knew some companies were poised to build if it became law," Sabey said. The company bought land for data center construction in Quincy in 2010.

Sabey said more than 250,000 sq ft of space was currently under construction in the state, not including his company’s project in Quincy.

A number of high-profile data center construction projects are taking place in Washington. Dell bought land in Quincy in the latter half or 2010 and has reportedly started moving dirt at the site.

Microsoft is also building in Quincy, and so is Yahoo!