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Regbase

The Data Center Divide

Rich County

For Rich County, see Utah’s statewide laws and regulations below. No additional county-specific measures are listed in our research.

Mixed Data Center Policies

Utah offers qualifying data centers tax breaks on equipment, while facilities seeking at least 100 megawatts face utility review, approval, contracts, and added service costs. Some new centers must report water use, and local governments will generally be barred from incentivizing large centers starting in 2027.

Incentives

Tax benefits
2

Provides qualifying data centers and their occupants a sales/use tax exemption for purchases or leases of machinery, equipment, or normal operating repair or replacement parts, used in the center's or occupant's operations and having an economic life of one or more years. The attached enactment expressly provides a sales and use tax exemption for an occupant of a qualifying data center.

Expands the sales/use tax exemption to occupants of qualifying data centers, covering eligible purchases or leases of machinery, equipment, and normal operating repair or replacement parts used in their data-center operations.

Grants and cash rebatesWorkforce and trainingInfrastructure funding
2

Creates conditional development-zone funding through which local governments may provide incentives, including eligible data-center payments or rebates, facilitate infrastructure development, and support workforce development programs within the county or municipality. Benefits are subject to statutory eligibility, funding limits, and separate restrictions on direct subsidies through participation agreements.

Creates conditional support for large-load data centers in approved energy-implications development zones: counties and municipalities may use the revenue to provide an incentive, including public-fund payment, rebate, refund, subsidy. Zone revenue may also facilitate infrastructure development, including electrical energy infrastructure development and water infrastructure development and support workforce development programs within the county or municipality. Data-center incentives are conditional and subject to the 80% diverted personal-property-tax revenue limit, with separate energy-tax-revenue authority; this is not a taxpayer exemption or preferential loan.

current law · Statewide
This statewide tax provision exempts qualifying data centers and their occupants from sales and use tax on eligible machinery, equipment, and long-lived operating repair or replacement parts used in the facility or occupant operations.Utah Code § 59-12-104(84) — Qualifying Data Center Sales and Use Tax Exemption

What this means

The bill does not appear to change the existing tax break for data center equipment, and its other tax changes are not aimed at data centers. So it would have little meaningful effect on building, expanding, or operating them.

People behind it

  • Senator and chief sponsor who proposed S.B. 114 and its substitute bill

  • House sponsor of S.B. 114

  • Chief sponsor of S.B. 235

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  • House sponsor of S.B. 235

Restrictions & requirementsHide restrictions & requirements7
  • To qualify for the data-center sales-tax exemption, the facility must house a group of networked server computers in one physical location for disseminating, managing, and storing data and information.

  • The qualifying data center must be located in Utah.

  • The facility must be a new operation constructed on or after July 1, 2016.

  • The facility must consist of one or more buildings totaling at least 150,000 square feet.

  • The facility must be owned or leased by the data-center operator or by a person under common ownership with the operator.

  • The land parcels containing the facility must be owned or leased by the data-center operator or by a person under common ownership with the operator.

  • The sales-tax exemption is limited to machinery, equipment, and normal operating repair or replacement parts used in operating the qualifying data center or an occupant's operations there, and those items must have an economic life of at least one year.

Benefits & exceptionsHide benefits & exceptions2
  • Provides a sales and use tax exemption for machinery, equipment, and normal operating repair or replacement parts purchased or leased by a qualifying data center or its occupant, when the items are used in operating the data center or the occupant’s operations there and have an economic life of at least one year. The exemption for qualifying data centers and occupants

  • Expands eligibility for the data-center tax exemption by defining a qualifying data center as a Utah facility with networked server computers in one physical location, constructed as a new operation on or after July 1, 2016, consisting of buildings totaling at least 150,000 square feet, and owned or leased by the facility operator or a person under common ownership with the operator; the related land must also be owned or leased by the operator or commonly owned person. The qualifying data center requirements

Sources

current law · Statewide
Modifies Utah’s sales-and-use-tax exemption for qualifying data centers by replacing “qualifying enterprise data center” with “qualifying data center,” defined as a Utah facility meeting specified ownership, construction, location, server, and 150,000-square-foot minimum requirements.Utah S.B. 114 (2020)

What this means

The measure gives qualifying data centers and their occupants a sales-tax exemption for eligible equipment and parts, lowering the cost of operating or expanding a facility (exemption for machinery, equipment, and parts). Eligibility is limited to facilities meeting requirements such as at least 150,000 square feet, but the bill adds no new operating restrictions or approval hurdles.

People behind it

  • Chief sponsor and substitute sponsor of the measure.

  • House sponsor of the measure.

Restrictions & requirementsHide restrictions & requirements4
  • To qualify for the data-center sales-tax exemption, a facility must be located in Utah and be a new operation constructed on or after July 1, 2016. new operation constructed on or after July 1, 2016

  • The facility must consist of one or more buildings totaling at least 150,000 square feet, creating a substantial size threshold for exemption eligibility. one or more buildings that total 150,000 or more square feet

  • The data-center facility must be owned or leased by its operator or by a person under common ownership with the operator, and the land parcels must likewise be owned or leased by the operator or a commonly owned person. Facilities that do not satisfy these ownership or leasing conditions do not qualify for the exemption. owned or leased by

  • The exemption for the qualifying data center or an occupant applies only to machinery, equipment, and normal operating repair or replacement parts used in operating the data center or the occupant's operations, and only when the items have an economic life of at least one year. Purchases outside these conditions remain subject to sales and use tax. used in the operation of the qualifying data center

Benefits & exceptionsHide benefits & exceptions4
  • Sales and use tax exemption for a qualifying data center's purchases or leases of machinery, equipment, and normal operating repair or replacement parts used in operating the data center, provided the items have an economic life of at least one year. The exemption covers qualifying data centers' machinery, equipment, and parts

  • The same sales and use tax exemption is extended to an occupant of a qualifying data center for machinery, equipment, and normal operating repair or replacement parts used in the occupant's operations within the data center, subject to the one-year economic-life requirement. or an occupant of a qualifying data center

  • The qualifying-data-center definition is revised to focus on the data center facility and its operator rather than requiring an establishment to own and operate it, allowing qualifying facilities operated by an entity or a commonly owned person. a data center facility that houses a group of networked server computers

  • To qualify for the data-center exemption, the facility must be in Utah, be a new operation constructed on or after July 1, 2016, consist of one or more buildings totaling at least 150,000 square feet, be owned or leased by the operator or a commonly owned person, and be located on land owned or leased by the operator or a commonly owned person. one or more buildings that total 150,000 or more square feet

Sources

current law · Statewide
Establishes a framework for providing electric service to large-scale loads expected to reach or increase cumulative demand by at least 100 megawatts within five years, including service through utilities, private-generation systems, and connected-generation systems.Utah S.B. 132 (2025), Electric Utility Amendments

What this means

For data centers seeking at least 100 megawatts, the bill adds required utility review, contracts, and approval, and makes customers pay incremental service costs. It also creates options to use private or alternative generation, so it is not a ban, but the added costs and steps are meaningful barriers to building or expanding very large data centers.

People behind it

  • Chief sponsor of S.B. 132 and proposer of the second substitute bill.

  • House sponsor and floor sponsor of S.B. 132; proposer of the fifth substitute bill.

Restrictions & requirementsHide restrictions & requirements12
  • For new or expanded service expected to reach at least 100 MW within five years, a customer generally must submit a large-scale service request to the utility serving the location. The request must include detailed load, project-financing, and other information; the utility may wait for its scheduled processing period, and its evaluation may take up to six months. Customers using a closed private generation contract are excepted from the request requirement. large-scale service request requirements

  • Customers may face reasonable utility charges for evaluations and related assessments, and a utility need not start its evaluation until required fees and information are provided. Customers submitting a service request must also pay a commission fee, assessed semiannually and allocated among customers with pending requests, for expert and proceeding costs. may charge reasonable fees fee from each large load customer

  • A utility may decline service in specified circumstances, including if it cannot meet the requested timeframe, the parties cannot agree on contract terms, or the customer fails to comply with the law or contract. The utility has no duty to serve except as a contract expressly provides and need not provide backup or ancillary services without agreement. is not required to provide electric service

  • Service requires one or more large-load contracts, and the customer must contract for all projected requirements and maintain resources or load-shedding capability sufficient for actual demand at all times. Utility and connected-generation contracts must include specified delivery terms and curtailment provisions; utility contracts also require financial security. contract for all of the customer's projected electrical requirements

  • A large-load contract requires commission approval before service can be provided. The application must be submitted within 15 business days after execution, and the commission has up to 60 days to approve or reject it, based on statutory compliance and whether the customer bears its just and reasonable incremental costs without shifting attributable costs to existing ratepayers. shall obtain commission approval within 60 days

  • A customer that has submitted a utility request may sign with an alternative large-scale generation provider only if the utility misses the statutory evaluation or response deadlines, or the parties cannot agree on a contract within 90 days after the customer receives the evaluation (unless they agree to more time). cannot agree to a large load contract within 90 days

  • A generation provider must register with the commission before serving customers, meet commission technical and financial qualifications, use qualifying generation resources, and post required security. Its commission submission must document required generation permits, including environmental permits, and estimated air-quality impacts; deficiencies can prevent new service and must be remedied within 90 days. register with the commission before providing service all required permits

  • A connected generation provider must maintain enough generation capacity for all contracted load and provide the commission with system-design and operational information, emergency-response procedures, and notice of configuration or operational changes. It must also maintain required commercial liability insurance. maintains sufficient generation capacity

  • Customers must pay just and reasonable incremental costs necessary for service, including generation, distribution upgrades, applicable transmission improvements and interconnection facilities, transmission service, and other necessary infrastructure. Where transmission service is required, the provider or customer must also pay for specified studies and upgrades and provide for ancillary, balancing, and backup services, to the extent federal law allows. pay all just and reasonable large load incremental costs pay for any interconnection or transmission-related studies

  • A closed private generation system must serve at least 100 MW cumulatively and remain wholly separate from utility facilities, except as authorized. Utility connections or services require a commission-approved contract; connection to the interstate transmission system is subject to additional tariff and commission requirements. minimum cumulative electrical demand of 100 megawatts remain wholly separate

  • The commission must investigate a flexible tariff and adopt one if it finds the tariff just and reasonable and in the public interest. Such a tariff may require a large-load customer to reduce or eliminate electricity use under specified conditions. require a large load customer to reduce or eliminate electric usage

  • The chapter's large-load service and private-generation contract provisions apply only when service is scheduled to commence on or before December 31, 2034. on or before December 31, 2034

Benefits & exceptionsHide benefits & exceptions9
  • The special service process covers new or additional electric service expected to reach at least 100 megawatts within five years, enabling qualifying large loads to seek service under the chapter. 100 megawatts or greater within five years

  • A qualified utility must evaluate a request and provide a written proposal with estimated customer costs, required system upgrades, and a service timeline. It must begin processing by the applicable April 1 or October 1 study-period deadline, complete the evaluation within six months after beginning it, and send the proposal within 15 business days after completion. complete an evaluation ... no more than 6 months

  • If the utility misses the evaluation or written-response deadline, or the customer and utility cannot agree on a service contract within 90 days after the evaluation, the customer may contract with a large-scale generation provider. The customer may negotiate with providers after submitting its request, but cannot execute a contract until one of those conditions is met. cannot agree to a large load contract within 90 days

  • A customer seeking service through a closed private generation system may negotiate directly with a generation provider without submitting a large-scale service request. The system must meet the chapter’s definition, including serving a cumulative demand of at least 100 megawatts; it must generally remain separate from utility facilities, and any utility connection or service requires a commission-approved contract. not required to submit a large-scale service request

  • A closed private generation system and its provider are exempt from commission oversight or regulation as a public utility under the title, subject to the chapter’s requirements, including use of qualifying generation resources and separation from utility facilities. exempt from commission oversight or regulation as a public utility

  • A generation provider may serve a customer through a connected generation system, and a provider that complies with the chapter is exempt from commission regulation as a public utility. Requirements include registration, qualifying resources, enough generation capacity for contracted load, and specified system and emergency-response information. is exempt from commission regulation as a public utility

  • Electric service under a large-scale service request is exempt from specified rate-regulation, ratemaking, and tariff-filing requirements. exempt from

  • The commission must approve or disapprove a large-load contract within 60 days of filing, if it finds the chapter’s requirements are met, the customer bears just and reasonable incremental costs, and existing ratepayers do not bear attributable costs. within 60 days

  • The commission must investigate a flexible tariff and adopt one if it finds the tariff just and reasonable and in the public interest. The tariff may provide utility services when resources are expected to be available and sufficient, and may specify when customers can be required to reduce or stop usage. adopt a large load flexible tariff

Sources

current law · Statewide
Establishes a Data Center Framework for large data centers aimed at protecting Utah’s water resources and air quality, promoting rural economic growth, mitigating wildlife impacts, protecting utility ratepayers, supporting consistent energy and transmission expansion, advancing pro-human AI development, and providing meaningful public comment, as set out in the Data Center Framework.Utah Executive Order 2026-03, Establishing a Higher Bar for Data Center Development in Utah

What this means

The order would require state agencies handling data-center matters to follow principles that include protecting water and air resources, utility ratepayers, and public participation, which could add review steps and constrain some projects (“Adhere to this Framework”). But it does not ban data centers or set detailed permitting rules, so the practical burden is uncertain and likely moderate.

People behind it

  • Governor of Utah who issued and established Executive Order 2026-03.

  • Entities directed to adopt, implement, review, and coordinate the Data Center Framework.

Restrictions & requirementsHide restrictions & requirements7
  • State executive-branch agencies must follow the Data Center Framework in matters related to large data centers; the order applies immediately and does not apply to higher-education institutions, the Utah Board of Higher Education, the State Board of Education, independent entities, specified constitutional offices, or the legislative and judicial branches. must adhere to this Framework in agency efforts

  • Data center-related agency actions must protect the Great Salt Lake and other water resources by ensuring that water consumption does not increase and that water quality is protected. ensuring that water consumption is not increased

  • Data center-related agency actions must protect air quality and airsheds, including by not impacting existing non-attainment areas. including not impacting existing non-attainment areas

  • The Framework requires agencies to mitigate wildlife impacts when addressing data centers. Mitigate wildlife impacts

  • The Framework requires protection of utility ratepayers and requires any expansion of energy-generation or transmission capacity associated with data centers to be consistent with the Framework’s other principles. Protect utility ratepayers

  • Agencies must provide transparent, meaningful, and thorough opportunities for public comment regarding data-center matters. Provide transparent, meaningful and thorough opportunities for public comment

  • Agencies must undertake extensive public outreach and engagement to refine the Framework and coordinate frequently with other agencies, specified governmental entities, and local governments to ensure consistent implementation. Undertake extensive public outreach and engagement

Benefits & exceptionsHide benefits & exceptions1
  • [ { "provision": "Promote economic and job growth in rural Utah": "The framework expressly supports rural economic and job growth, which can assist data-center development in rural areas. The order provides no specific incentive or funding and does not require data centers to locate rurally." }, { "provision": "Ensure opportunities to expand energy generation and transmission capacity": "The framework allows opportunities to expand power-generation and transmission capacity in connection with data centers, but only when consistent with all other framework principles, including water, air-quality, wildlife, and ratepayer protections." }, { "provision": "Coordinate and communicate frequently across agencies": "The order requires state agencies to coordinate with one another, the Utah Inland Port Authority, the Military Installation Development Authority, and local governments to ensure consistent implementation of the framework. This may provide a more coordinated development process, but the order does not create expedited permitting or override local requirements." } ]

Sources

current law · Statewide
Restricts incentives for large-load data centers: beginning May 6, 2027, a county or municipality may not offer an incentive unless the center is located in a regionally significant development zone, subject to exceptions for certain preexisting project areas and agreements (§ 63N-3a-402(1)).Utah Code § 63N-3a-402 and § 63N-3a-403 (2026)

What this means

Overall, this is a modest net negative: starting May 6, 2027, local governments generally cannot offer incentives to large-load data centers outside approved zones, although zone-based incentives remain available up to 80% of diverted personal-property-tax revenue. Counties may also impose an optional energy tax of up to 6% on qualifying data centers, so possible zone support offsets but does not remove the incentive limits and potential operating cost.

People behind it

  • Chief sponsor of H.B. 507.

  • Senate sponsor of H.B. 507.

  • Reviews zone proposals, coordinates committee consideration, and performs administrative duties under the measure.

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  • A county or municipality authorized to propose a regionally significant development zone.

  • Considers, approves, modifies, or denies proposals for regionally significant development zones requiring tax increment.

  • Manages, develops, administers, and reports on an approved regionally significant development zone and its revenue.

Restrictions & requirementsHide restrictions & requirements10
  • Beginning May 6, 2027, a political subdivision generally may not provide an incentive to a large load data center. An incentive includes tax-increment or personal-property-tax-funded payments, rebates, subsidies, or public infrastructure and improvements that wholly or primarily support the data center.

  • A county or municipality may provide an incentive only if the large load data center is located within a regionally significant development zone and the incentive uses authorized zone funds. A regional economic development authority must also satisfy specified project-area and overlapping-zone requirements.

  • The incentive prohibition does not apply to a project area established before May 6, 2027, or to an incentive agreement executed before that date. However, an existing agreement may not be extended or have its value increased.

  • A regionally significant development zone containing a large load data center must include an assessment of existing electrical infrastructure, a development plan identifying infrastructure improvements and projected economic benefits, and evidence of local support when applicable.

  • A data-center zone proposal must provide for diversion of all personal property tax revenue generated within the zone and may request capture of no more than 60% of property-tax increment and diversion of up to 100% of personal-property-tax revenue.

  • A proposed data-center zone may not overlap a community reinvestment agency project area or a project area created by the Utah Inland Port Authority or the Military Installation Development Authority.

  • The committee must approve a data-center zone only if the proposed land is suitable for a large load data center because it has access to electrical energy resources and an adequate water supply, and the development plan contains realistic timelines, specific infrastructure improvements, and quantified benefits to nearby residents.

  • Beginning January 1 after zone designation, the county treasurer must distribute specified personal-property-tax and property-tax-increment amounts to the zone and deposit specified remitting amounts into the State Reinvestment Restricted Account, reducing the revenue available for local use or incentives.

  • Beginning May 6, 2027, incentives to a large load data center funded from diverted personal-property-tax revenue are limited to 80% of the revenue received by the county or municipality, or shared with a regional economic development authority.

  • A county may impose an energy excise tax of up to 6% of the delivered value of gas or electricity used by a high-impact consumer, including a large load customer or qualifying data center, located on unincorporated land. The energy supplier must collect and remit the tax quarterly, and 90 days' notice is required before the county imposes, repeals, or changes the rate.

Benefits & exceptionsHide benefits & exceptions10
  • A county or municipality may provide an incentive to a large load data center located in a regionally significant development zone, using zone funds. Beginning May 6, 2027, the incentive may generally use up to 80% of the diverted personal property tax revenue received by the county or municipality.

  • A regional economic development authority may provide incentives to a large load data center in an overlapping authority project area using shared zone funds or project-area funds, subject to a maximum of 60% of property tax increment generated in the overlapping area.

  • A county that imposes the county energy excise tax, or a municipality that imposes the municipal energy tax, may use up to 80% of that energy-tax revenue as an incentive for a large load data center.

  • A qualifying energy-implications zone may capture up to 60% of property tax increment and divert up to 100% of personal property tax revenue generated within the zone, subject to committee approval and required remittances to the State Reinvestment Restricted Account.

  • Zone revenue may fund infrastructure and development supporting the data center, including electrical energy infrastructure, water infrastructure, energy storage, clean energy, microgrids, telecommunications, sewer, chilled water, roads, and other public infrastructure and improvements.

  • Zone agencies may issue or support bonds, create financing districts, and pledge zone revenue to finance eligible infrastructure, development, and related costs.

  • A zone agency may enter into a private-public partnership with a private entity, including arrangements recognizing private or public ownership interests or creating a lease for a zone project.

  • The committee must approve an energy-implications zone application if it demonstrates that the proposed land is suitable for a large load data center based on access to electrical energy resources and adequate water supply, and that the development plan includes specified infrastructure improvements, timelines, and projected economic benefits.

  • Existing protections preserve incentives for qualifying projects established before May 6, 2027: a preexisting project area or agreement may continue under its existing terms, although its term may not be extended and its incentive value may not be increased.

  • A sales and use tax exemption described in Section 59-12-104 is expressly excluded from the definition of an incentive under the prohibition on incentives for large load data centers.

Sources

current law · Statewide
Utah H.B. 76 requires large data centers—facilities withdrawing at least 75 acre-feet of water annually and occupying at least 10,000 square feet—to provide water-use information and related notices.Utah H.B. 76 (2026)

What this means

The measure would add modest paperwork for new data centers that meet its size and water-use thresholds, including advance notice and annual water-use reports (annual water withdrawal of 75 acre feet per year or more). It does not prohibit projects or make reporting a condition of local approval, so the added burden is limited.

People behind it

  • Chief sponsor and proposer of the third substitute bill; the bill identifies Koford as chief sponsor.

  • Senate sponsor and floor sponsor; the bill identifies Sandall as Senate sponsor.

  • Co-sponsor; listed among the bill’s cosponsors.

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  • Co-sponsor; listed among the bill’s cosponsors.

  • Co-sponsor; listed among the bill’s cosponsors.

  • Co-sponsor; listed among the bill’s cosponsors.

  • Co-sponsor; listed among the bill’s cosponsors.

  • Co-sponsor; listed among the bill’s cosponsors.

  • Co-sponsor; listed among the bill’s cosponsors.

  • Co-sponsor; listed among the bill’s cosponsors.

  • Co-sponsor; listed among the bill’s cosponsors.

  • Co-sponsor; listed among the bill’s cosponsors.

  • Co-sponsor; listed among the bill’s cosponsors.

  • Co-sponsor; listed among the bill’s cosponsors.

  • Administers reporting requirements, publishes withdrawal data, and enforces reporting; the bill assigns reporting and enforcement duties to the division.

  • Must make rules for enforcement of initial orders and has related enforcement powers; the bill directs the state engineer to make enforcement rules.

  • Must notify specified agencies and the relevant water provider before approving a land use application for a new large data center; the bill requires this notice.

  • Receive the operator’s notice of anticipated water needs so they can assess compatibility with the proposed location; the bill describes that purpose.

Restrictions & requirementsHide restrictions & requirements4
  • Before approving a land-use application for a new large data center, a city or county land-use authority must notify the Division of Water Rights, the Division of Water Quality, and any relevant water provider. This is a notice requirement, not a separate approval or veto. Before a land use authority … approves

  • Operators of covered new large data centers must, before construction, give the relevant water provider written details of anticipated water needs and report specified information to the Division of Water Rights. The notice and report must be made 90 to 360 days before construction begins, starting on or after July 1, 2026. The requirements apply to qualifying data centers withdrawing at least 75 acre-feet of water annually and meeting the law’s other size and facility criteria. at least 90 days, but no sooner than 360 days

  • After beginning operations, operators of covered new large data centers must report annually to the Division of Water Rights by July 1 for the previous calendar year, including actual water withdrawals, conservation efforts, and applicable pollution-protection efforts. An exception applies if the state engineer requires water-data reporting under another statute by rule. annually by no later than July 1

  • If an operator fails to submit a required pre-construction or annual report, or submits an incomplete one, the Division must notify the operator. If the operator then fails to submit a complete report, the Division must impose a fine of up to $100 per day for continued noncompliance. up to $100 for each day

Benefits & exceptionsHide benefits & exceptions3
  • Existing large data centers that began operations before July 1, 2026, are not “new large data centers” under the measure and therefore are outside these new reporting requirements. “begins operations on or after July 1, 2026”

  • An operator may avoid the measure’s annual report if the state engineer requires the center to report water data under another statute’s rule, even if that other report does not cover all of the center’s water data. “regardless of whether the scope of the report”

  • Certain reported business information can be treated as proprietary and withheld from public disclosure if the operator follows the specified records-claim process. This can cover discharge-treatment plans, discharge-temperature adjustments, reuse or replacement plans, and certain annual conservation or pollution-protection information; water-withdrawal data is not included in these protected categories. “complies with Section 63G-2-309”

Sources

future law · Statewide
Establishes statewide coordination rules for economic-development projects and creates regional development zones, with the enrolled bill taking effect May 6, 2026.Utah H.B. 507 (2026)

What this means

Starting in 2027, local governments generally cannot offer incentives to large data centers, which may make some projects less attractive to build or expand. Exceptions and zone-based funding soften this limit, and the measure does not ban data centers or add general operating requirements.

People behind it

  • Chief sponsor of H.B. 507.

  • Senate sponsor and proposer of the third substitute bill.

  • Reviews zone proposals and maintains public information about tax-increment financing.

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  • Deposits specified revenues into the State Reinvestment Restricted Account.

  • Administers specified tax distributions and deposits certain revenue into the State Reinvestment Restricted Account.

  • A municipality or county that may propose a regionally significant development zone.

  • Reviews and may approve or deny proposals involving tax increment.

  • Manages an approved regionally significant development zone and administers its revenue.

Restrictions & requirementsHide restrictions & requirements5
  • Beginning May 6, 2027, political subdivisions generally may not provide large load data centers incentives funded by tax increment or personal property tax revenue. Counties and municipalities generally may not offer incentives outside an approved regionally significant development zone. Exceptions include specified zone-funded incentives, certain energy-tax revenues, and sales and use tax exemptions.

  • Incentive agreements made, or qualifying survey-area resolutions adopted, before May 6, 2027, may continue under their existing terms, but may not be extended or increased.

  • A large load data center seeking a regionally significant development zone must go through a proposal and approval process. The proposal must address electrical infrastructure, development plans, and projected benefits; the land must be suitable for a data center based on access to electricity and adequate water. An energy-related zone must divert all personal property tax revenue generated within it and may request up to 60% of property tax increment.

  • Within Utah Inland Port Authority jurisdictional land, a new or expanded commercial or industrial development using more than 200,000 gallons of potable water per day annually may not receive property-tax-differential funding as a business-recruitment incentive. Developments seeking other eligible incentives under this provision must meet the authority’s minimum mitigation and environmental standards.

  • A county may impose an excise tax of up to 6% on the delivered value of energy supplied to a large load customer or qualifying data center on unincorporated land. If a regional economic development authority also imposes a municipal energy tax, the combined rate may not exceed 6%.

Benefits & exceptionsHide benefits & exceptions10
  • An approved regionally significant development zone may capture up to 60% of property tax increment and divert up to 100% of personal property tax revenue for project development, including property acquisition, construction, and public infrastructure. Committee approval and required state-account remittances apply.

  • A county or municipality may offer a large load data center an incentive of up to 80% of qualifying diverted personal property tax revenue it receives for a zone, subject to the zone’s revenue-sharing rules.

  • A county that levies the authorized county energy excise tax, or a municipality that levies the authorized municipal energy tax, may use up to 80% of the applicable tax revenue for a data-center incentive.

  • A municipality or county may provide incentives from regionally significant development zone funds for a data center located in the zone. A regional economic development authority may also provide incentives when its project area overlaps a zone; project-area funds are capped at 60% of the property tax increment generated in the overlapping area.

  • Zone revenue may support infrastructure development, including electrical-energy and water infrastructure, subject to the approved zone and applicable agreements.

  • In a Utah Inland Port Authority project area, the Authority may use property-tax differential and other available funds to finance development within or adjacent to the area, assist a facility’s ongoing operation, and pay for public infrastructure, including electricity, energy storage, and telecommunications systems.

  • For an approved regionally significant development zone, an agency may create infrastructure financing or public infrastructure districts and pledge zone funds to secure bonds, subject to zone approval and applicable bond-law requirements.

  • An agency managing an approved regionally significant development zone may enter a public-private partnership it determines will promote the zone’s objectives. The agreement may recognize private or public ownership interests or create a lease, and the applicant must show it is qualified to operate the project.

  • Qualifying data-center incentives under agreements entered into before May 6, 2027, or preserved by a qualifying survey-area resolution adopted before that date, may continue under their existing terms; the agreement’s term may not be extended and the incentive’s value may not be increased.

  • A sales and use tax exemption described in Section 59-12-104 is not treated as an incentive under the data-center incentive restriction. This does not create a new exemption.

Sources

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