Tax abatement is discretionary: the Commissioners Court may deny an application entirely or grant it only to the extent it considers appropriate, and the guidelines create no legal right to approval.

To qualify for tax abatement, a data-center project generally must be an eligible facility, add at least $500,000 of eligible property value to the tax roll, generate at least $1 million in positive net economic benefit to the County over the agreement term, and not primarily transfer employment within Gaines County.

The abatement application must include detailed project descriptions, a list and location of improvements, a map and property description, and a construction schedule; the County may also require financial and other information about the applicant.

An applicant must pay a nonrefundable $1,000 administrative application fee and agree to reimburse the County for reasonable legal fees related to processing, negotiating, modifying, or amending the abatement.

Before acting on an application, the County must provide written notice to the presiding officer of each taxing unit with jurisdiction over the property at least seven days in advance.

A tax-abatement agreement must identify the proposed improvements, authorize County inspection, and may limit the property's use to remain consistent with the taxing unit's development goals.

An agreement must require the owner to annually certify compliance with its terms, and County representatives may inspect the facility during the abatement term with at least 24 hours' prior notice.

After construction is completed, the County must annually evaluate each facility receiving abatement for compliance, and the Chief Appraiser annually determines the value of the real and personal property in the reinvestment zone.

If the applicant becomes delinquent on ad valorem taxes or violates the agreement and fails to cure the violation within the applicable cure period, the agreement may be terminated and all previously abated taxes must be recaptured and paid within 30 days.

Land, inventories, supplies, tools, furnishings, vehicles, vessels, aircraft, deferred-maintenance investments, and certain housing or leased property are ineligible for abatement and remain fully taxable.

The County may deny an agreement if the project would substantially adversely affect government services or the tax base, the applicant lacks sufficient financial capacity, the applicant's activities would violate applicable codes or laws, or for any other reason the County considers appropriate.

A tax-abatement agreement may be transferred to a new owner or lessee only with Commissioners Court approval or under the agreement's existing terms; transfers require at least 20 days' advance notice, and approval is barred when the relevant parties owe outstanding taxes or other obligations.

The guidelines remain in force for two years and are subject to review, modification, renewal, or elimination, although changes do not affect previously approved agreements unless the parties agree to amend them.

Data centers are expressly listed as eligible facilities for tax abatement, provided the project is reasonably likely to retain or expand primary employment or attract major investment and contribute to County economic development. Computer/Data Center

Eligible projects may receive a full or partial exemption from County ad valorem taxes on the increase in value directly resulting from the approved development, expansion, or improvement. The project must add at least $500,000 in eligible taxable value and be expected to produce at least $1 million in positive net economic benefit over the agreement's life. must add at least Five Hundred Thousand Dollars

The abatement may cover new, expanded, or modernized buildings, structures, fixed machinery and equipment, site improvements, related fixed improvements, and other real or tangible personal property permitted by Chapter 312. new, expanded, or modernized buildings

The County may negotiate the terms of an abatement agreement to compete favorably with other communities, allowing project-specific financial and operational terms rather than requiring one uniform package. reserves the right to negotiate

A leased data-center facility can qualify for abatement. The agreement may be executed by both the lessor and lessee, or by the lessee when the lessee owns the facility constructed on leased land. If taxes are abated on a leased facility

The County's application procedure states that no additional notice or hearing is required beyond the required tax-code notice and open-meetings compliance, unless the Commissioners Court decides otherwise. This can reduce procedural steps for obtaining an abatement. No other notice or hearing shall be required

The County may negotiate agreements requiring the company to maintain or improve roads, drainage routes, and other infrastructure affected by construction, and may include agreed payment-in-lieu-of-tax terms. maintain roads, drainage routes

An approved abatement agreement may be transferred to a new owner or lessee of the same facility, subject to Commissioners Court approval or the agreement's terms. Approval may not be unreasonably delayed or withheld, and the parties must not owe outstanding taxes or other obligations. Approval shall not be unreasonably delayed or withheld

Previously approved abatements are protected from later changes to or elimination of the guidelines: amendments or sunset actions do not affect existing agreements unless the parties agree to amend them. no modification or elimination

For projects in unincorporated rural areas, the County states that it lacks authority to impose broad commercial or residential zoning ordinances, which limits the County's ability to block or restrict data-center land use through traditional zoning. cannot pass broad land-use, commercial, or residential zoning ordinances

A company seeking a Chapter 312 tax-abatement agreement must first apply to the Commissioners Court, providing project-specific details and the proposed abatement terms. (They must apply to the Commissioners Court first)

The proposed project must undergo negotiations, with outside counsel for the County drafting the County’s response to the company’s terms. (Negotiations begin)

A reinvestment zone must be approved before a tax-abatement agreement can proceed, making the project subject to a separate geographic designation and required notices. (A Re-Investment Zone must be approved first)

After terms are established, the tax-abatement agreement must be approved by a vote of the Commissioners Court at a noticed hearing. (the abatement is voted on in Commissioners Court)

Required notices must be posted on the County website and at the courthouse within the applicable notice periods before reinvestment-zone and abatement proceedings. (Notices for this hearing are posted on the website and board at the Courthouse)

Tax abatements apply only to taxes on value above the property’s current assessed value; taxes on the existing assessed value must continue to be paid. (all current taxes on currently assessed values would continue to be paid)

The County’s eligibility to participate in tax abatements and its guidelines and criteria must be reestablished every two years for reinvestment-zone designations and tax-abatement agreements. (every two (2) years for the designation of reinvestment zones and entering into Tax Abatement agreements)

Gaines County elects to participate in Chapter 312 tax abatements, allowing eligible data-center projects to seek property-tax abatements under county guidelines and criteria.

The County may designate reinvestment zones in which property owners can apply for abatements on taxes assessed above the property's current assessed value. Existing taxes on the current assessed value must continue to be paid.

Tax-abatement agreements may provide negotiated payment-in-lieu-of-tax arrangements, with payments potentially beginning when each project phase is completed; the FAQ states that abatements are generally for 10 years.

A tax-abatement agreement may establish construction and infrastructure terms, including requirements concerning road maintenance, drainage routes, infrastructure improvements, and project timelines.