11-41-202. Political subdivisions prohibited from providing incentives -- Exceptions.

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A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

Effective 5/6/2026

(1)Beginning on May 6, 2027, except as provided in Subsections

(2)and (3), a political subdivision may not provide an incentive to a large load data center.

(a)A municipality or county, or agency created by a municipality or county, may provide an incentive to a large load data center:

(i)only if the large load data center is located within a regionally significant development zone, as described in Title 63N, Chapter 3a, Part 4, Regionally Significant Zones with Energy Implications; and

(ii)with regionally significant development zone funds described in Subsection 63N-3a-403(5) .

(b)A regional economic development authority may provide an incentive to a large load data center:

(i)if the large load data center is located in a project area created by the regional economic development authority;

(ii)if the regional economic development authority's project area overlaps with a regionally significant development zone, as described in Subsection 63N-3a-208(7)(b) ; and

(iii)the incentive is funded by:

(A)regionally significant development zone funds described in Section 63N-3a-403 that have been shared with the regional economic development authority; or

(B)the regional economic development authority's project area funds, subject to a maximum cap of 60% of property tax increment generated within the overlapping project area.

(c)A county that levies the county energy excise tax authorized in Section 59-37-201 may provide up to 80% of the revenue generated by the county energy excise tax as an incentive to a large load data center.

(d)A municipality that levies the municipal energy tax authorized in Title 10, Chapter 1, Part 3, Municipal Energy Sales and Use Tax Act, may provide up to 80% of the revenue generated by the municipal energy tax as an incentive to a large load data center.

(e)A sales and use tax exemption described in Section 59-12-104 does not constitute an incentive.

(3)A political subdivision that entered into an agreement to provide an incentive to a large load data center, or has adopted a survey area resolution in accordance with Section 17C-5-103 with intent to provide an incentive to a large load data center, before May 6, 2027:

(a)may continue to provide the incentive according to the terms of the political subdivision's agreement;

(b)may not extend the term of the agreement; and

(c)may not increase the value of the incentive under the agreement.

Enacted by Chapter 373 , 2026 General Session