Data centers qualify for abatement only as facilities that consume electricity generated or stored by an eligible alternative or renewable energy facility or battery-storage facility; the eligible power is generally intended for behind-the-meter use.

The application must include project-criteria information, a property map and legal description, an improvement schedule, estimated taxable value, financial information showing the applicant’s capacity and stability, and a $1,500 application fee.

The Commissioners Court must decide within 60 days after receiving an application whether to deny it, consider it further, or use expedited consideration.

Further consideration requires a public hearing, notice to other affected taxing units at least seven days beforehand, newspaper publication, a majority vote to designate the property as a reinvestment zone, and a later majority vote to approve the tax-abatement agreement.

A reinvestment-zone designation is valid for only five years, and an approved tax-abatement agreement generally must be executed within 30 days after the resolution approving it unless the parties agree otherwise.

The County may refuse any application, and an application with a substantially adverse effect on natural resources or County infrastructure, including roads and bridges, will not be approved unless the applicant demonstrates just cause for an exception.

Improvements and property eligible for abatement are limited; tangible personal property already located on the site before the agreement period, inventory, supplies, and rolling stock are excluded.

For real property, only the value exceeding the property’s value in the year the agreement is executed may be abated.

Property in a reinvestment zone owned or leased by a member of the County Commissioners Court is excluded from tax abatement.

A tax-abatement agreement may last no more than 10 years and may abate no more than 100 percent of ad valorem property taxes.

An agreement must allow County employees or representatives reasonable initial and intermittent access to inspect the property for compliance.

An agreement must require annual certification of compliance to each participating taxing unit and may be canceled or modified for noncompliance.

The agreement must provide for recapture of tax revenue, plus any required penalty or interest, if the owner fails to make required improvements, create required jobs, or meet other performance criteria.

Data centers are expressly eligible as behind-the-meter facilities that consume electricity generated or stored by qualifying renewable or alternative-energy facilities, and they may sell excess power to the public grid. (behind-the-meter uses may include ... “data centers”)

For qualifying projects, tax abatement may cover the data center’s new, expanded, or modernized buildings, structures, fixed machinery and equipment, site improvements, administrative or operational tangible property, and other real and tangible personal property allowed by Chapter 312. (abatement may be granted for the improvements in B.1 and B.2)

The tax abatement can last up to 10 years and cover up to 100% of eligible ad valorem property taxes. (up to but not exceeding ten (10) years in duration and up to but not exceeding 100 percent (100%))

For real property, only the increase in value above the property’s value in the year the agreement is executed may be abated; previously located personal property, inventory, supplies, and rolling stock are excluded. (Taxes on real property may be abated only to the extent the property value)

The County may use an expedited application process that combines the reinvestment-zone designation and tax-abatement-agreement steps into one regularly scheduled meeting, if all procedural prerequisites are satisfied. (may combine the steps)

Information describing the proposed data-center processes, business activities, equipment, or other property remains confidential and unavailable for public disclosure until the tax-abatement agreement is executed. (information ... is confidential and not subject to public disclosure until the tax abatement agreement is executed)

The Commissioners Court may waive application procedures or grant procedural variances when state law permits, potentially reducing administrative obstacles to a qualifying data-center project. (the County may waive application procedures or grant procedural variances)