63N-3a-403. Committee consideration of a zone with energy implications.
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Effective 5/6/2026
63N-3a-403. Committee consideration of a zone with energy implications.
(1)The committee shall approve an application for a zone designation if the application demonstrates that:
(a)the proposed zone includes land suitable for a large load data center based on:
(i)access to electrical energy resources; and
(ii)adequate water supply; and
(b)the proposed development plan:
(i)aligns with the state's regional and statewide economic development objectives;
(ii)includes realistic timelines and milestones;
(iii)identifies specific infrastructure improvements; and
(iv)quantifies projected economic benefits to the residents who live near the zone.
(a)The committee shall establish the percentage of property tax increment a regionally significant development zone is authorized to capture and utilize as described in Subsection 63N-3a-203(4) , including establishing the percentage of property tax increment that shall be deposited into the reinvestment account.
(b)If the committee approves a proposal to divert personal property tax revenue, the committee shall establish:
(i)the percentage of personal property tax revenue that shall be diverted to the county or municipality that creates the zone; and
(ii)the remitting percentage that the county treasurer shall deposit into the reinvestment account.
(c)The remitting percentage of property tax increment revenue for a zone described in this part is established in Subsection
(3).
(3)Beginning January 1 following the designation of a zone as described in this section, the county treasurer shall:
(a)transfer the percentage, established by the committee under Subsection (2)(b)(i) , of revenue attributed to personal property tax within the zone to the agency managing the zone;
(b)transfer the remitting percentage, established by the committee under Subsection (2)(b)(ii) , of revenue attributed to personal property tax within the zone into the reinvestment account;
(c)transfer the percentage of property tax increment, as established by the committee under Subsection (2)(a) , generated within the zone to the zone's creating entity;
(d)deposit the percentage of tax increment established under Subsection (2)(a) for deposit into the reinvestment account into the reinvestment account; and
(e)make the distributions required under this Subsection
(3):
(i)at the same time as regular annual property tax distributions; and
(ii)using the same method as other property tax distributions.
(4)A county or municipality that receives revenue under Subsection
(3)may:
(a)transfer revenue to the agency managing the zone, to be used as regionally significant development zone revenue as described in Title 17C, Chapter 6, Regionally Significant Development Zones Act;
(b)transfer revenue to a regional economic development authority with a project area that overlaps the zone, as described in Subsection 63N-3a-208(7)(b) , in accordance with an agreement between the county or municipality and the regional economic development authority;
(c)subject to Subsection
(5), use the revenue to provide an incentive;
(d)use the revenue to facilitate infrastructure development, including electrical energy infrastructure development and water infrastructure development; and
(e)use the revenue to support workforce development programs within the county or municipality.
(a)Beginning May 6, 2027, a county or municipality, or a regional economic development authority that shares zone revenue with a county or municipality, may only provide an incentive to a large load data center from the revenue the county or municipality receives, or that is shared with the regional economic development authority, of up to 80% of the diverted personal property tax revenue as described under Subsection
(3).
(b)Notwithstanding Subsection (5)(a) :
(i)a county that levies the county energy excise tax authorized in Section 59-37-201 may offer up to 80% of the revenue the county collects annually from the county energy excise tax as an incentive for a large load data center, as described in Section 11-41-202 ; and
(ii)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, as described in Section 11-41-202 .
(6)Nothing in this section authorizes a political subdivision other than one described in Subsection
(4)or
(5)to offer an incentive to a large load data center, as described in Title 11, Chapter 41, Part 2, Prohibition on Tax Increment Incentives for Large Load Data Centers Act.
Enacted by Chapter 373 , 2026 General Session