A data-center project may receive the taxable-value limitation only if it qualifies as an eligible project, such as a high-tech equipment or technology facility or critical-infrastructure project. Nondispatchable electric-generation facilities and electric-energy storage facilities are excluded.

The project must be located in a Chapter 311 or 312 reinvestment zone or an enterprise zone when the agreement is executed. Eligible buildings must be newly constructed after the agreement, and qualifying personal property must first be placed in the zone after that date.

Applicants must meet county-based minimums by the end of the first incentive-period tax year: 75 jobs and $200 million of investment in counties with at least 750,000 people; 50 jobs and $100 million in counties with 250,000 to 749,999 people; 35 jobs and $50 million in counties with 100,000 to 249,999 people; or 10 jobs and $20 million in smaller counties. The requirements generally do not apply to qualifying dispatchable electric-generation facilities.

Required jobs must be new, full-time Texas jobs generally involving at least 1,600 hours per year. Jobs may not be transferred from an existing Texas facility or created to replace an existing job unless the resulting vacancy is filled.

Applicants must submit a detailed application to the comptroller with project, site, construction, employment, investment, tax, zone, and projected economic-benefit information, together with a map, sworn eligibility affidavit, and economic-benefit statement covering the construction period and the 25 years following the incentive period.

Applicants must pay a comptroller application fee sufficient to cover evaluation costs and a school-district application fee of up to $30,000.

The comptroller may recommend approval only if the project is reasonably likely to generate enough state or local tax revenue within 20 years to offset lost school-district maintenance-and-operations revenue and the agreement is a compelling factor in the site-selection decision, such that the investment might not occur in Texas without it.

Approval requires favorable action by both the governor and the school district. The school district must hold a public hearing with at least 15 days' notice and decide whether to approve the application within 30 days after receiving it.

To qualify for the program's greater 75 percent taxable-value reduction, the entire project, including its boundaries, must be located in a qualified opportunity zone.

The agreement must require average annual wages for project employees to exceed 110 percent of the applicable industry-sector average wage, excluding construction wages.

The applicant must offer and contribute to a group health-benefit plan for every employee holding a full-time project job.

The applicant must execute a performance bond in an amount set by the comptroller to secure compliance with the agreement.

Applicants must submit biennial compliance reports during the agreement covering jobs, wages, investment, property values, and taxes, with sworn certifications and payroll records when applicable.

Failure to meet the required job or wage levels for two consecutive reporting periods can result in monetary penalties, capped at the tax benefit received.

The governor or school district may terminate the agreement for job or wage noncompliance after written notice and a 180-day period to cure or dispute the failure. Termination requires recovery of lost ad valorem tax revenue attributable to the project, plus interest.

Companies listed as ineligible for certain state contracts or investments under the specified state-law provisions may not apply for or enter into an agreement.

The applicant may not make payments to the school district related to the agreement, and may not knowingly solicit, accept, offer, or transfer money or other value in exchange for approval unless authorized by the Act.

The taxable-value limitation is available for no more than 10 consecutive tax years and is subject to statutory limits on when the incentive period may begin.

The incentive program expires on December 31, 2033, limiting the time in which an agreement may be entered into.

A qualifying data-center project may receive the program's tax-value limitation if it constructs or expands critical infrastructure or operates a facility involved in the research, development, or manufacture of high-tech equipment or technology.

Facilities related to utility services, including dispatchable electric-generation facilities whose output is primarily controllable by human action, may qualify and can support power infrastructure for data-center developments. Nondispatchable generation and electric-energy-storage facilities are excluded; eligible dispatchable generation facilities are exempt from the required-jobs rule.

Eligible property generally receives a school-district maintenance-and-operations taxable value equal to 50% of market value for a 10-consecutive-tax-year incentive period, or 25% of market value if the entire project is located in a qualified opportunity zone. The benefit generally covers new or expanded buildings and qualifying tangible personal property first placed in the applicable reinvestment or enterprise zone after the agreement is entered into.

Eligible property has zero taxable value for school-district maintenance-and-operations taxes from the tax year after the agreement is entered into through the tax year containing the project's construction-completion date.

The incentive period may be deferred in certain circumstances if the applicant expects not to meet the minimum investment requirement in the first incentive year, subject to statutory timing limits.

The required investment and job thresholds vary by county population, ranging from $20 million and 10 jobs in counties with fewer than 100,000 residents to $200 million and 75 jobs in counties with at least 750,000 residents. The job requirement does not apply to an eligible dispatchable electric-generation facility.

A school district may designate an area within the district as a reinvestment zone for the tax-value limitation if the designation is reasonably likely to attract major investment benefiting the district or region. Designation as an enterprise zone also designates the area as a reinvestment zone for this program.

The application and approval process is handled through the comptroller, governor, and school district, with statutory review deadlines generally requiring comptroller action within 60 days after a complete application and governor and school-district action within 30 days after receiving the application. A school-district application fee may not exceed $30,000, and no separate comptroller application fee is required.

An applicant is not required to make a payment to the school district as part of the agreement, and unauthorized payments or transfers of value connected with obtaining approval are prohibited.

A school district entering into an agreement does not lose foundation school program funding as a result of the tax-value limitation.

Before termination for an alleged jobs or wage violation, the applicant must receive written notice and 180 days to cure or dispute the alleged failure, including through judicial action.

Trade secrets and payroll records submitted under the program are confidential and exempt from disclosure under the Public Information Act.

Approval requires findings that the project is reasonably likely to generate enough state or local tax revenue within 20 years to offset the school-district maintenance-and-operations revenue forgone under the agreement and that the agreement is a compelling factor in the competitive site-selection decision.

As conditions of receiving the incentive, an approved project must comply with applicable wage requirements, including average annual wages exceeding 110% of the applicable industry-sector average, and must offer and contribute to a group health-benefit plan for full-time employees.

To qualify as a data center under the sales-tax exemption, the facility must contain at least 100,000 square feet in a single building or portion of a building, be located in Texas, be specifically constructed or refurbished primarily for servers and related support staff, and be used by a single qualifying occupant. The data-center definition also excludes facilities used primarily by telecommunications providers to deliver telecommunications services.

The facility must have an uninterruptible power source, generator backup power, a sophisticated fire-suppression and prevention system, and enhanced physical security, including restricted access, video surveillance, and electronic systems. These infrastructure and security requirements create operating and construction requirements for an eligible data center.

To obtain certification as a qualifying data center, the owner, operator, or occupant must create at least 20 qualifying jobs in the county; each must be full-time, permanent for at least five years, and pay at least 120 percent of the county average weekly wage. The job threshold and wage requirement can restrict eligibility for facilities that do not meet those employment levels.

The owner, operator, or occupant must make or agree to make at least $200 million in capital investment in the particular data center over the five-year period beginning on the certification date. The $200 million investment requirement creates a substantial capital barrier to qualifying for the exemption.

The exemption requires an application to the comptroller for certification and issuance of registration numbers, with required information and certification that the investment commitment will be met. The certification and registration process adds an administrative prerequisite before the exemption may be claimed.

Each person claiming the exemption must hold a comptroller-issued registration number and state it on exemption certificates provided to sellers. The registration-number requirement creates an ongoing compliance condition for tax-exempt purchases.

If the comptroller determines that the data center no longer meets the qualification requirements, the registration numbers must be revoked, and the affected persons become liable for the taxes, penalties, and interest on exempt purchases, including purchases made before revocation. The revocation and retroactive tax liability rule creates financial exposure for noncompliance.

The exemption does not cover office equipment or supplies, maintenance or janitorial supplies or equipment, items used primarily in sales or transportation, property subject to a refund claim, certain property incorporated into real estate, property rented or leased for one year or less, or taxable services performed on otherwise exempt property. These exclusions can leave qualifying facilities with additional sales-tax costs.

The sales-tax exemption does not apply to taxes imposed under Chapters 321, 322, or 323, and the electricity exemption is subject to the specific statutory exceptions for those taxes. The local-tax limitation can result in additional local sales-tax costs.

A data center subject to an agreement limiting the appraised value of its property under Subchapter B or C of Chapter 313 cannot receive the sales-tax exemption. The prohibition on combining incentives forces an eligible project to choose between the Chapter 313 appraised-value limitation and the data-center sales-tax exemption.

Under current Section 313.009, an entity issued a registration number under Section 151.359 or Section 151.3595 is ineligible to receive a Chapter 313 limitation on appraised value. The current ineligibility rule further prevents an entity using the data-center tax exemption from receiving that Chapter 313 property-tax benefit.

Provides a sales-tax exemption for qualifying data centers’ necessary and essential tangible personal property, including electrical and cooling systems, emergency generators, servers, data-storage devices, network equipment, racks, software, and related mechanical, electrical, and plumbing systems. The property must be purchased for installation, incorporation, or use at the qualifying data center by a qualifying owner, operator, or occupant. necessary and essential to the operation of a qualified data center

Exempts electricity used directly by a comptroller-certified qualifying data center for processing, storing, and distributing data from state sales and use taxes. The exemption does not apply to taxes imposed under Chapters 321, 322, or 323. use directly by a data center

Allows the exemption to last 10 years when the data center makes at least $200 million but less than $250 million in capital investment, or 15 years when investment reaches $250 million or more. The period begins when the comptroller certifies the data center. expires on the 10th anniversary

Creates a certification route for data centers that meet specified investment and employment requirements: at least 20 qualifying jobs in the county and at least $200 million of capital investment in that particular data center over five years. Jobs transferred from another Texas county do not count. creates at least 20 qualifying jobs

Defines qualifying jobs as full-time, permanent positions lasting at least five years and paying at least 120 percent of the county average weekly wage, directing the incentive toward sustained, higher-paid employment. full-time, permanent job that pays at least 120 percent

Permits a single qualifying occupant to lease space for a new data center, or, if it is also the owner and operator, occupy space that was not previously used as a data center. contracts with a qualifying owner or qualifying operator to lease space

Allows the qualifying owner, operator, and occupant to meet the required capital investment and job creation jointly or independently, providing flexibility in structuring development and operations. jointly or independently

Requires the comptroller to issue registration numbers to eligible claimants so they can use exemption certificates when purchasing eligible property. must hold a registration number issued by the comptroller

A standard qualifying data center must occupy at least 100,000 square feet in a single Texas building or portion of a building; a qualifying large data center project must contain at least 250,000 square feet on one parcel or commonly owned contiguous parcels.

The facility must be specifically constructed or refurbished primarily for servers and related equipment and support staff, have a single qualifying occupant that may not sublease any part of the facility, and may not be used primarily by a telecommunications provider to deliver telecommunications services.

The facility must provide an uninterruptible power source, backup generation, sophisticated fire suppression and prevention, restricted access, video surveillance, and electronic security systems.

A standard qualifying data center must create at least 20 qualifying county jobs and invest at least $200 million within five years after certification; a large data center project must create at least 40 qualifying county jobs and invest at least $500 million within that period.

Qualifying jobs must generally be full-time, last at least five years, and pay at least 120 percent of the county average weekly wage; jobs transferred from another Texas county do not count.

A large data center project must agree to contract for at least 20 megawatts of transmission capacity.

The owner, operator, or occupant must apply to the comptroller for certification and registration, hold the required tax permit or apply for one, and use comptroller-issued registration numbers on exemption certificates.

The exemption does not cover office equipment or supplies, maintenance or janitorial items, property used primarily for sales or transportation, short-term rentals or leases, certain real-property improvements, taxable services, or certain nonresidential repair and remodeling.

Standard qualifying data centers remain responsible for applicable local sales and use taxes, while large-project tax treatment is limited to qualifying purchases covered by the large-project exemption.

Electricity or natural gas must be sold to the person using it in the exempt manner, and when a single meter measures both exempt and taxable use, predominant-use rules can make the entire measured use taxable or exempt; a predominant-use study is generally required unless the facility is stand-alone with only one occupant.

Property subject to a Chapter 313 agreement limiting its appraised value is ineligible for the exemption, and an entity holding a data-center registration number may not receive such a Chapter 313 limitation.

The exemption is time-limited: a standard data center receives it for 10 years with at least $200 million but less than $250 million invested, or 15 years with at least $250 million invested; a large-project exemption lasts 20 years only if the $500 million investment requirement is met.

The comptroller may revoke certification and registration if the investment, job-creation, or job-retention requirements are not met; revocation creates liability for previously unpaid taxes, penalties, and interest on purchases made under the exemption.

Purchasers must use the prescribed exemption form with both the data center's and purchaser's registration numbers, and purchases made before certification are not eligible for a refund.

Owners, operators, and occupants must file job-creation reports, submit to comptroller audits and continuing job reviews, and retain records of tax-free purchases and local tax payments through certification expiration or resolution of post-revocation assessments.

Qualifying data centers receive an exemption from Texas state sales and use tax on necessary and essential operating property, including electricity, electrical and cooling systems, generators, servers, storage devices, networking equipment, racks, software, and related mechanical, electrical, plumbing, fixture, and component systems. The exemption generally excludes office and janitorial items, sales or transportation equipment, certain real-property improvements, short-term leases, and taxable services.

The standard qualifying-data-center exemption lasts 10 years for at least $200 million but less than $250 million in qualifying investment, or 15 years for at least $250 million. Eligibility generally requires at least 100,000 square feet, 20 qualifying county jobs, and at least $200 million invested or committed within five years, with certification by the comptroller. Standard local sales and use taxes generally remain due.

Qualifying large data center projects receive a 20-year sales and use tax exemption on necessary and essential purchases, including power and cooling systems, generators, servers, storage, networking equipment, software, and related systems. The project generally must have at least 250,000 square feet, 40 qualifying county jobs, at least $500 million in capital investment within five years, and an agreement to contract for at least 20 megawatts of transmission capacity; the large-project exemption can include applicable local sales and use taxes.

Gas and electricity used directly by a comptroller-certified qualifying data center or large data center project to process, store, or distribute data are exempt under the applicable sales and use tax provisions. For shared meters, exemption generally depends on predominant use; a stand-alone facility whose qualifying occupant is the sole inhabitant may use the required exemption certificate without a predominant-use study.

Owners, operators, and occupants may qualify independently or jointly and receive separate comptroller-issued registration numbers, allowing each eligible participant to claim exemptions using exemption certificates.

If a retailer does not accept a valid exemption certificate, an eligible purchaser may request a refund of sales tax paid, subject to verification that the purchaser had a valid registration number when the purchase occurred. A new owner, operator, or occupant of an existing certified facility may obtain a registration effective retroactively to the facility's original certification date.

Qualifying jobs staffed by third-party employers may count toward the large-data-center job requirement when a written contract permanently assigns those positions to the associated project.

Applications and supporting certification information, including capital-investment and job plans, are confidential.

The sales-tax exemption is limited to a data center with at least 100,000 square feet in one building, used primarily for data processing, storage, and distribution by a single qualifying occupant, and equipped with specified backup power, fire-protection, and security systems. Space used primarily by a telecommunications provider to deliver telecommunications services is excluded.

To qualify, the center must create at least 20 qualifying jobs in its county. Jobs moved from another Texas county do not count; each job must be full-time, last at least five years, and pay at least 120 percent of the county average weekly wage.

The owner, operator, or occupant must make or commit to at least $200 million in capital investment in the center within five years of certification.

The exemption requires Comptroller certification and a Comptroller registration number, which must appear on exemption certificates.

The exemption does not cover specified items and costs, including office, maintenance, and janitorial supplies; certain property used for sales or transportation; property rented or leased for one year or less; and specified taxable services or property incorporated into real estate.

The exemption lasts 10 years for an investment of at least $200 million but less than $250 million, and 15 years for an investment of at least $250 million.

If the Comptroller finds that the center no longer meets the requirements, the registration numbers must be revoked and affected claimants may owe tax, penalties, and interest dating back to purchases made under the exemption.

The exemption does not cover local taxes under Chapters 321, 322, or 323, so those taxes remain due.

A data center subject to a Chapter 313 appraised-value limitation agreement is ineligible for the exemption, and an entity issued an exemption registration number cannot receive a Chapter 313 appraised-value limitation.

A comptroller-certified qualifying data center may claim a temporary exemption from state sales and use taxes on necessary and essential property purchased for installation, incorporation, or use at the center, including electrical and cooling systems, generators, servers, storage and network equipment, and software. Generally, the center must have at least 100,000 square feet, create at least 20 qualifying jobs paying at least 120% of the county average weekly wage, and commit to invest at least $200 million within five years after certification. The exemption lasts 10 years for investments of $200 million to less than $250 million, or 15 years for investments of $250 million or more. Local taxes under Chapters 321–323 are not exempt.

Gas and electricity used directly by a comptroller-certified qualifying data center to process, store, or distribute data are exempt from state sales and use tax. The utility must be sold to the person using it in the exempt manner; qualifying use by that purchaser’s independent contractor counts as the purchaser’s use.

A qualifying data center must occupy at least 100,000 square feet in a single building or portion of a single building; a qualifying large data center project must occupy at least 250,000 square feet in one or more buildings on a single parcel or contiguous commonly owned parcels.

The facility must be used by a single qualifying occupant. The occupant generally may not sublease or allow third parties to use real or tangible personal property within the designated data-center area.

The facility must be specifically constructed or refurbished primarily to house servers, related equipment, and support staff for data processing, storage, and distribution.

The facility must have an uninterruptible power source, backup generation, fire-suppression and prevention systems, and enhanced physical security, including restricted access, video surveillance, and electronic systems.

The facility may not be used primarily by a telecommunications provider to house property used to deliver telecommunications services.

To qualify for the data-center exemption, the owner, operator, or occupant must create at least 20 qualifying jobs and make at least $200 million in capital investment within five years after certification.

To qualify for the large-data-center-project exemption, the owner, operator, or occupant must create at least 40 qualifying jobs, make at least $500 million in capital investment within the applicable five-year period, and contract for at least 20 megawatts of transmission capacity.

Qualifying jobs must be new, full-time, permanent positions located in the same Texas county as the facility, provide at least 1,820 hours of employment per year, and pay at least 120% of the county average weekly wage. Jobs transferred from another Texas county or created to replace a prior qualifying job do not count.

Qualifying jobs must generally exist for at least five years, and vacancies must be filled within 120 days to preserve the job's qualifying status.

Applicants must obtain Comptroller certification and registration numbers, submit the prescribed application and business proposal, and hold or apply for a Texas sales or use tax permit or direct payment permit.

A facility subject to a Chapter 313 agreement limiting the appraised value of its property is ineligible for the data-center sales-tax exemption.

For electricity supplied through a shared meter, a predominant-use study is required to separate taxable and exempt consumption unless the data center is a stand-alone facility whose qualifying occupant is the sole inhabitant.

The exemption does not cover office equipment or supplies, maintenance or janitorial items, property used primarily for sales or transportation, short-term rentals or leases of one year or less, certain property incorporated into real estate, or taxable services performed on exempt property.

A qualifying data center receives only a state sales and use tax exemption; local sales and use taxes remain payable. This limitation does not apply to qualifying large data center projects.

The exemption is temporary: it lasts 10 years for qualifying data centers investing at least $200 million but less than $250 million, 15 years for qualifying data centers investing at least $250 million, and 20 years for qualifying large data center projects meeting the $500 million investment requirement.

The Comptroller audits qualifying facilities at the five-year anniversary to verify capital investment, job creation, and, for large projects, transmission capacity. Applicants must also report when the required jobs have been created.

Failure to satisfy certification requirements can terminate certification and revoke all related registration numbers, making each affected entity liable for the previously unpaid sales or use taxes, penalties, and interest on tax-free purchases from the date of purchase.

Owners, operators, and occupants must retain detailed records of exempt purchases, capital investment, job creation and retention, local-tax payments, and transmission capacity until certification expires; after revocation, records must be kept until all assessments are resolved.

To claim the exemption, each eligible purchaser must provide the seller a properly completed Form 01-929 containing the data-center registration number, purchaser registration number, property description, signature, and purchase date. Sellers may decline to accept the certificate, requiring the purchaser to pay tax and seek a refund.

A certified qualifying data center may temporarily purchase necessary and essential property without Texas state sales and use tax, including servers, storage devices, cooling systems, electrical systems, generators, network equipment, software, racks, and related mechanical, electrical, and plumbing systems. necessary and essential to the operation

A qualifying large data center project may temporarily purchase eligible necessary and essential property exempt from both Texas state and local sales and use taxes. applies to Texas state and local sales and use taxes

Electricity used by a certified data center or large data center project for processing, storing, and distributing data is eligible for the exemption. A stand-alone facility whose qualifying occupant is the sole inhabitant may use an exemption certificate instead of conducting a predominant-use study. a stand-alone qualifying data center

The qualifying data center sales-tax exemption lasts 10 years if at least $200 million but less than $250 million is invested within the first five years, and 15 years if at least $250 million is invested. expires 15 years from the date of certification

The qualifying large data center project exemption lasts 20 years if at least $500 million is invested within the required five-year period. ends 20 years from the date of certification

Owners, operators, and occupants may jointly or independently satisfy the required capital-investment and job-creation commitments, allowing the project participants to share responsibility for qualification. jointly or independently

Jobs staffed by third-party employers may count as qualifying jobs if a written contract permanently assigns the positions to the associated data center or large data center project. staffed by a third party employer

A qualifying occupant may designate only part of leased space as the qualifying data center and sublease undesignated space to a third party; property purchased for the undesignated space does not receive the exemption. formally designate 100,000 square feet or more

After certification, the Comptroller issues registration numbers to the qualifying data center and eligible owner, operator, and occupant, allowing purchases to be made tax-free using the prescribed exemption certificate. issue a separate registration number

If a seller declines to accept the exemption certificate, the purchaser may seek a refund of the tax paid from the Comptroller; the seller must provide an assignment of the right to refund. request a refund of the tax paid

Jointly procured qualifying property may be apportioned among the participating purchasers for purposes of determining liability if the exemption is later revoked. apportioned among the purchasers

The qualifying large data center project program permits a project consisting of multiple buildings totaling at least 250,000 square feet on a single parcel or contiguous commonly owned or affiliated parcels. one or more buildings totaling at least 250,000 square feet

A large data center project must contain at least 250,000 square feet in one or more buildings on a single parcel or contiguous commonly owned or affiliated parcels.

A qualifying data center generally must occupy at least 100,000 square feet in a single Texas building or portion of a building; a qualifying large data center must meet the 250,000-square-foot threshold.

The facility must be specifically constructed or refurbished primarily to house servers, related equipment, and support staff for processing, storing, and distributing data.

The facility must have a single qualifying occupant, may not be used primarily by a telecommunications provider to deliver telecommunications services, and may not be subleased.

The facility must have an uninterruptible power source, backup generator, fire-suppression and prevention systems, and specified physical-security systems, including restricted access, video surveillance, and electronic systems.

A large data center project must create at least 40 qualifying full-time permanent county jobs, with each job maintained for at least five years, paid at least 120 percent of the county average weekly wage, and not transferred from another Texas county.

A smaller qualifying data center must create at least 20 qualifying county jobs, with the jobs being full-time, permanent, maintained for at least five years, and not merely transferred from another Texas county.

A large data center project must make or commit to make at least $500 million in capital investment in the project within five years; replacement of personal property previously placed in service at the project does not count.

A smaller qualifying data center must make at least $200 million in capital investment within five years.

A large data center project must agree to contract for at least 20 megawatts of transmission capacity for its operation.

The owner, operator, or occupant must apply to the comptroller for certification, obtain registration numbers, and use comptroller-issued registration numbers on exemption certificates.

Certification requires the applicant to hold or apply for a Texas Sales or Use Tax Permit or Texas Direct Payment Permit.

The exemption does not cover various purchases, including office equipment and supplies, maintenance or janitorial items, sales or transportation equipment and supplies, certain property incorporated into real estate, property rented or leased for one year or less, taxable services, and certain property subject to refund claims or used for real-property repair or remodeling.

Electricity and gas qualify only when used directly by a comptroller-certified qualifying data center for processing, storing, or distributing data; when a single meter serves mixed uses, a predominant-use study may be required.

A project subject to a Chapter 313 agreement limiting the appraised value of its property is ineligible for the exemption, and an entity receiving the data-center exemption is barred from receiving such a Chapter 313 limitation.

The exemption begins only after comptroller certification; purchases made before certification are not eligible for a refund.

The exemption may be claimed only with the required exemption certificate listing the data center's and purchaser's registration numbers; a retailer may refuse the certificate, requiring the purchaser to pay tax initially and seek a refund.

Qualifying owners, operators, and occupants must maintain complete records of tax-free purchases and local-tax payments through the certification period or until assessments after revocation are resolved.

For ordinary qualifying data centers, the exemption covers only the 6.25 percent state sales and use tax; applicable local sales and use taxes remain due.

If the project no longer meets the certification requirements, the comptroller must revoke its registration numbers, and claimants become liable for the previously exempt taxes, penalties, and interest on affected purchases.

The large-data-center exemption expires on the 20th anniversary of certification and applies only if the required $500 million investment is made.

For smaller qualifying data centers, the exemption lasts 10 years for investments below $250 million and 15 years for investments of $250 million or more.

A qualifying data center may receive a temporary exemption from the 6.25% Texas state sales and use tax on necessary and essential property, including electricity, electrical and cooling systems, generators, servers, storage devices, network equipment, racks, software, and related mechanical, electrical, plumbing, equipment, fixtures, and component parts. Exclusions include office and maintenance items, certain sales or transportation equipment, certain real-estate improvements, short-term rentals, and taxable services performed on the property. Qualifying data center property

A standard qualifying data center can receive the property exemption for 10 years if it invests at least $200 million but less than $250 million, or for 15 years if it invests at least $250 million. It generally must have at least 100,000 square feet, create at least 20 qualifying jobs, and make or commit to the investment within five years. Certification requirements and exemption duration

A qualifying large data center project may receive the same type of state sales and use tax exemption for up to 20 years from comptroller certification if it makes at least $500 million in qualifying capital investment within the required five-year period. Twenty-year exemption

A large data center project generally must have at least 250,000 square feet, create at least 40 qualifying full-time permanent jobs paying at least 120% of the county average weekly wage, invest at least $500 million, and contract for at least 20 megawatts of transmission capacity. It must also meet the measure's requirements concerning its data-processing use, occupancy, power, backup-generation, fire-suppression, and physical-security systems. Large project qualification requirements

Gas and electricity used directly by a comptroller-certified qualifying data center or qualifying large data center project to process, store, and distribute data are exempt from state sales and use tax; the related exemption also applies to municipal sales and use taxes subject to statutory exceptions. Electricity and gas used by qualifying large data centers

Qualifying jobs may include full-time permanent positions staffed by a third-party employer if a written contract permanently assigns the positions to the associated data center project and the jobs satisfy the applicable wage and duration requirements. Third-party qualifying jobs

The required $500 million investment for a large data center project may be made independently or jointly by the qualifying owner, operator, or occupant over the applicable five-year period.

Owners, operators, and occupants may apply separately for comptroller certification and registration, allowing eligible parties to claim the exemption with registration numbers on exemption certificates. Applicants must have or obtain a Texas sales or use tax permit or direct-payment permit. An owner, operator and/or occupant of a data center can apply

A new owner, operator, or occupant of an existing certified qualifying data center may obtain its own registration with an effective date retroactive to the associated facility's certification date, allowing eligible refund claims for purchases made after that certification date. The effective date of the new applicant's registration number will be made retroactive

The exemption can be claimed by providing the seller Form 01-929 with the data center's and purchaser's registration numbers. If the seller does not accept the certificate, the purchaser may seek a refund, but purchases made before facility certification are not refundable. This certificate is the only documentation that a seller can accept

A stand-alone qualifying data center whose qualifying occupant is the sole inhabitant may purchase electricity tax-free without conducting a predominant-use study by giving the utility provider Form 01-929. A study may still be required for electricity supplied through a shared meter. The qualifying owner, qualifying operator or qualifying occupant of a stand-alone qualifying data center is not required to perform a study

For the sales-tax exemption available to qualifying data centers, the facility must have at least 100,000 square feet, be used by one qualifying occupant primarily for data processing, storage, and distribution, and include specified backup power, fire-protection, and security systems. These are conditions for the tax benefit, not a general restriction on building a data center. The data-center definition

To qualify for that exemption, the project must create at least 20 qualifying full-time permanent jobs paying at least 120% of the county average weekly wage and make or commit to at least $200 million in capital investment over five years. The exemption lasts 10 years for investment below $250 million, or 15 years for investment of at least $250 million. The qualifying-job and investment thresholds

The separate large-data-center-project exemption requires at least 250,000 square feet on a single or contiguous commonly owned or affiliated parcels, one qualifying occupant, and specified backup-power, fire-protection, and security systems. To qualify, the project must create at least 40 qualifying full-time permanent jobs paying at least 120% of the county average weekly wage, make or commit to at least $500 million in capital investment over five years, and agree to contract for at least 20 megawatts of transmission capacity. The exemption lasts 20 years. The large-project criteria

Claiming either data-center exemption requires an application to and certification by the comptroller, plus a comptroller-issued registration number for each claimant. If the project fails to meet the applicable qualifications, the comptroller must revoke the registration numbers, and claimants become liable for the tax, penalties, and interest on purchases previously claimed as exempt. Certification and registration requirements

A data center subject to an agreement limiting its property's appraised value under former Chapter 313, Subchapter B or C, is ineligible for either data-center sales-tax exemption. The Chapter 313 exclusion

The exemption for qualifying data centers does not cover municipal taxes under Chapter 321, and the qualifying-data-center exemption also excludes certain purchases, including office and maintenance equipment or supplies, property leased for one year or less, and taxable services performed on exempt property. These exclusions leave those purchases taxable under the applicable rules. Items excluded from the exemption

Certified ordinary centers receive exemptions on essential operating property for 10 or 15 years, subject to statutory eligibility.

Certified large projects receive an exemption expiring on the 20th anniversary, subject to statutory eligibility.

For a job to count toward qualifying data-center certification, it must be full-time, permanent, and pay at least 120% of the county average weekly wage. A third-party employee counts only if a written contract permanently assigns the position to an associated qualifying data center.

Allows a full-time, permanent position staffed by a third-party employer to count as a qualifying job for data-center certification if it pays at least 120% of the county average weekly wage and a written contract provides that the position is permanently assigned to an associated qualifying data center. This applies to centers certified before, on, or after the Act’s effective date.

A facility must contain at least 100,000 square feet in a single building or portion of a building and be located in Texas to qualify for the data-center exemption.

The facility must be specifically constructed or refurbished primarily for servers, related equipment, and support staff processing, storing, or distributing data.

The facility must have a single qualifying occupant and may not be used primarily by a telecommunications provider to deliver telecommunications services.

The facility must have an uninterruptible power source, generator backup power, sophisticated fire-suppression and prevention systems, and enhanced physical security, including restricted access, video surveillance, and electronic systems.

The owner, operator, or occupant must create at least 20 qualifying full-time, permanent jobs in the county. Each job must last at least five years, pay at least 120 percent of the county average weekly wage, and cannot be transferred from another Texas county.

The owner, operator, or occupant must make or commit to make at least $200 million in capital investment in the particular data center within five years after certification.

The data center must apply to the comptroller for certification, provide required information, and certify that the required investment will be made within the specified five-year period.

Each person claiming the exemption must obtain a comptroller-issued registration number and include it on exemption certificates provided to sellers.

The comptroller may revoke registration numbers if the data center no longer meets the requirements. After revocation, the claimant becomes liable for previously exempt taxes, penalties, and interest, including on purchases made before revocation.

The exemption excludes office equipment and supplies, maintenance or janitorial supplies and equipment, property used primarily for sales or transportation, property subject to a refund claim, certain property incorporated into real estate, property rented or leased for one year or less, and taxable services performed on exempt property.

The exemption does not apply to municipal, county, or special-purpose-district sales and use taxes imposed under Chapters 321, 322, or 323, leaving those local taxes payable.

A data center subject to a Chapter 313 agreement limiting the appraised value of its property is ineligible for the exemption, and an entity registered for the data-center exemption is ineligible for a Chapter 313 appraised-value limitation.

The exemption is temporary: it expires after 10 years for qualifying investment of at least $200 million but less than $250 million, and after 15 years for investment of $250 million or more.

Provides a state sales and use tax exemption for tangible personal property necessary and essential to installing, incorporating, or operating a qualifying data center. Covered property includes servers, storage devices, network equipment, racks, software, electrical and cooling systems, emergency generators, and related mechanical, electrical, and plumbing systems. The exemption excludes items such as office and janitorial supplies, sales or transportation equipment, property leased for one year or less, and certain taxable services.

Exempts gas and electricity used directly by a comptroller-certified qualifying data center to process, store, and distribute data from state sales and use tax. The exemption generally does not apply to taxes imposed under Chapters 321, 322, or 323, including applicable local taxes.

Allows an owner, operator, or occupant to claim the exemptions if the data center generally occupies at least 100,000 square feet, is primarily used for data processing, storage, and distribution, and has required power, fire-suppression, and security systems. Certification also requires at least 20 qualifying full-time permanent jobs paying at least 120 percent of the county average weekly wage and at least $200 million in capital investment over five years; transferred jobs do not count.

Makes the exemption available for 10 years from comptroller certification when capital investment is at least $200 million but less than $250 million, and for 15 years when investment is at least $250 million.

Creates a comptroller certification and registration process that lets eligible owners, operators, and occupants receive registration numbers and claim the exemptions using exemption certificates. Registration may be revoked if the facility stops meeting the requirements, potentially making prior exempt purchases subject to tax, penalties, and interest.