Revise taxes for class 17 data center property

The header was updated to identify the document as an 'Enrolled Bill' for the 69th Legislature (2025), signifying it has passed all legislative stages and been approved by the Governor.

Minor formatting adjustments were made to the effective date section to ensure consistent capitalization and punctuation.

Added a requirement that data centers selling electricity to public utilities or cooperatives cannot charge more than the actual cost of production.

Defined 'cost of production' to include capital costs, depreciation, wages, fuel, and operating supplies, while explicitly excluding corporate administration and travel.

Modified tax increment calculations to exclude university system mills and, for districts created after June 2022, half of the school equalization mills.

Changed the bill number from HB 424.3 to HB 424 and updated formatting for the final enrolled version.

The bill's purpose changed from extending the timeframe for building data centers to regulating the price of electricity sold by data centers.

A new requirement was added stating that electricity sold by a qualified data center to a public utility or cooperative cannot exceed the cost of production.

The previous requirement regarding the extended timeframe for constructing data center property was removed.

The definition of 'cost of production' was expanded to include capital construction costs, depreciation, wages, fuel, operating supplies, utilities, and contracted services.

Tax increment calculations for targeted economic development districts were modified to exclude university system mills and specific new voter-approved levies.

A new provision was added allowing public utilities to annually audit the operating costs of the generator at their own expense.

The definition of 'Class Thirteen Property' was significantly altered to include allocations for telecommunications services and dedicated communications infrastructure for data centers.

Electrical generation facilities owned by data centers are now explicitly excluded if they are wind, biomass, or federally certified qualifying facilities.

A new 5-year tax exemption was added for fiber optic and coaxial cable installed on or after July 1, 2021, with a phase-out schedule over 10 years.

New requirements mandate that owners claiming the fiber optic tax exemption must reinvest the tax savings into new infrastructure within two years to maintain the benefit.

The bill clarifies that tax exemptions for qualifying facilities can be rescinded if the entity fails to disclose its intent to seek federal certification.

The bill number was changed from HB 424.3 to HB 424.2, and the effective date was updated to include retroactive applicability.

Added a new section allowing data centers to sell electricity to public utilities or cooperatives at a price not exceeding the cost of production.

Defined 'cost of production' to include capital construction, depreciation, wages, fuel, operating supplies, and utilities, while excluding corporate administration, travel, and legal services.

Granted public utilities and electric cooperatives the right to annually audit the operating costs of the data center generator at their own expense.

Extended the timeframe for data center property construction requirements from 15 years to 25 years.

Added specific requirements for the sale of power produced by data centers, including a definition of 'qualified data center' referencing existing legislation.

Removed the requirement that data centers must build facilities within a specific timeframe and the mandate that school equalization mills be paid on Class Seventeen property.

Deleted the provision limiting the sale price of power produced by data centers to the cost of production.

Added a new requirement that owners of fiber optic or coaxial cable must reinvest tax savings by installing new cable within two years to maintain a five-year tax exemption.

Completely restructured the definition of 'Class Thirteen Property' to explicitly list included electrical generation and telecommunications facilities while excluding wind, biomass, and certain federal qualifying facilities.

Updated the timeline for fiber optic cable tax exemptions, changing the start date to July 1, 2021, and adjusting the phase-out period to 10 years.

Added an exclusion stating that fiber optic projects funded by the American Rescue Plan Act are not eligible for the new tax exemption.

Added a new requirement that if a data center sells electricity to a utility, the price cannot exceed the cost of production, including capital costs, wages, fuel, and operating supplies.

Defined 'qualified data center' to align with existing definitions in the school equalization tax section.

Removed exemptions for property owned by cooperative rural electric associations and certain telecommunications infrastructure previously classified under Class 13.

Changed the phase-out schedule for fiber optic cable tax exemptions and removed the requirement to reinvest savings to maintain the exemption.

Modified the rules for tax increment funds in targeted economic development districts by excluding university system mills and new voter-approved mill levies from the calculation.

Adjusted the start date for the 25-year tax period for dedicated communications infrastructure from 2027 to 2037.

The bill number was changed from HB 424.3 to HB 424.2, and the legislative session header was updated to reflect the current year.

Minor formatting and spacing adjustments were made throughout the text to standardize the layout.

A specific date reference in the telecommunications infrastructure section was corrected from June 30, 2027, to June 30, 2037.

Added a requirement that school equalization mills must be paid from tax increment revenue on Class 17 property within districts using Tax Increment Financing.

Added 'electrical generation systems' to the list of dedicated communications infrastructure eligible for tax incentives.

Modified the calculation of tax increments to explicitly exclude university system mills and new mill levies approved by voters after the tax increment provision was adopted.

Extended the construction timeframe for data center property from 15 years to 25 years.

Updated the definition of electrical generation facilities to include those used by data centers, broadening the scope of properties eligible for tax benefits.

Removed an unnecessary semicolon and space following the phrase 'MUST BE BUILT' in the bill title.

The bill title and header were slightly reformatted, with a semicolon added after 'BUILT' and the bill identifier changed from HB 424.1 to HB0424.2.

The bill title changed from 'LC 3009' to 'HB 424.1', and the list of sponsors was updated to include K. Zolnikov, M. Bertoglio, D. Fern, D. Harvey, M. Regier, S. Fitzpatrick, B. Lerner, G. Hertz, and K. Bogner.

Minor formatting adjustments were made to the bill header and page markers, but no substantive policy, eligibility, or definition changes were introduced in the provided text.