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TX SB2222

Bill

Status

Introduced

3/11/2025

Primary Sponsor

Tan Parker

Click for details

Origin

Senate

89th Legislature Regular Session

AI Summary

  • Creates a complete ad valorem (property) tax exemption for qualified data centers, including the building, land, and tangible personal property used to meet the facility's energy demands

  • Defines a qualifying data center as at least 100,000 square feet of space specifically constructed or refurbished to house servers and related equipment for data processing, storage, and distribution

  • Requires qualified data centers to generate their own electricity through uninterruptible power sources and backup generators to meet all energy demands, rather than drawing from the power grid

  • Mandates that qualifying data centers must have a contract to provide energy or ancillary services back to ERCOT or another power grid

  • Takes effect January 1, 2026, contingent upon 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 Local Government

3/25/2025

Committee Referrals

Local Government3/25/2025

Full Bill Text

No bill text available