Loading map…
Regbase

The Data Center Divide

San Patricio County

Mixed Data Center Policies

Texas combines substantial, long-term sales-tax breaks for qualifying large data centers with grid-connection studies, fees, and infrastructure costs that can make projects slower and more expensive. Some large facilities may also face emergency power reductions or grid-stability requirements; the tax benefits have demanding eligibility conditions.

Rating and summary from Texas statewide as there are no scored current or future laws outside temporary restrictions for San Patricio County.

Incentives

Tax benefits

County tax-abatement program offers qualifying businesses abatements on new project value for up to ten years, potentially up to 100% of real and personal property taxes. The supplied program summary does not verify the specific 2019 guidelines. Program terms.

San Patricio County Guidelines and Criteria for Granting Tax Abatement (2019)

Specific to San Patricio County only.

expired · County measure
Provides a local property-tax incentive for qualifying businesses considering locating in San Patricio County, covering new real and personal property value created by a project.San Patricio County Guidelines and Criteria for Granting Tax Abatement (2019)

What this means

Eligible projects may receive up to 100% property-tax abatement for up to 10 years, which could substantially lower the cost of building or expanding a data center. The benefit is conditional, including a requirement to add at least $4 million in value, and the sources do not confirm that every data center qualifies.

People behind it

  • Issues and administers the Tax Abatement Guidelines, determines eligibility for tax abatement applications, and is a governmental party to the tax-abatement agreement.

  • Processes formal tax abatement applications after qualification.

  • Submitted the agenda item to accept and record Steel Dynamics' tax-abatement compliance.

Show 4 more peopleShow fewer people

  • Owner under the tax-abatement agreement and responsible for submitting the annual certification of compliance.

  • Submitted and certified Steel Dynamics' annual tax-abatement compliance report.

  • Reviewed Steel Dynamics' documentation and audited its compliance with the tax-abatement agreement.

  • Reported Steel Dynamics' compliance with its tax-abatement obligations.

Benefits & exceptionsHide benefits & exceptions9

  • The county may designate eligible areas as reinvestment zones and enter into tax-abatement agreements for qualifying projects.

  • Property-tax abatements may cover all or part of the increase in appraised value from eligible new construction, expansion, modernization, or improvements, including qualifying real and tangible personal property; existing appraised value is excluded.

  • Qualifying businesses may receive an abatement on new project value from the county and other applicable jurisdictions, potentially reaching 100% annually.

  • The abatement may last for up to 10 years, subject to applicable statutory limits and the agreement's requirements.

  • Projects must add at least $4 million in value to the tax rolls, and the abatement percentage is guided by a tiered structure listed as Basic: 1%, Silver: 2.5%, Gold: 5%, and Platinum: 10%.

  • A LEED-related property-tax abatement is available for projects with at least $100,000 in value.

  • Applicants may establish eligibility before construction or expansion by applying for and obtaining approval before beginning qualifying improvements.

  • The final agreement specifies the abatement percentage, term, eligible property, and performance requirements, after required public notice and a hearing; the county may approve, deny, or condition the abatement.

  • The incentive remains available only while the project meets investment, employment, construction, and tax-payment requirements; failure to comply can result in termination or recapture of abated taxes.

Sources

Data provided by Regbase · Cookie preferences · Report missing data