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TX HB5588
Bill
Status
3/14/2025
Primary Sponsor
Cody Harris
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AI Summary
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Creates a complete property tax exemption for "qualified data centers" that generate their own electricity, covering the building, land, and energy-generation equipment
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Defines a data center as at least 100,000 square feet of space used primarily to house servers and related equipment for data processing, storage, and distribution, with required infrastructure like uninterruptible power, backup generators, fire suppression, and enhanced security
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Requires qualifying data centers to meet all their energy demands through their own power sources and to have a contract to provide energy or ancillary services to ERCOT or another power grid
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Excludes facilities used primarily by telecommunications providers to deliver telecommunications services
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Takes effect January 1, 2026, contingent on voter approval of a related constitutional amendment proposed by the 89th Legislature
Legislative Description
Relating to an exemption from ad valorem taxation of the total appraised value of real property used as a data center and the tangible personal property used by the data center to meet the data center's demand for energy.
Property Interests
Last Action
Referred to Ways & Means
4/7/2025