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WI AB228

WI AB228
Tax incremental financing districts containing qualified data centers. (FE)


summary

Introduced
04/29/2025
In Committee
04/29/2025
Crossed Over
Passed
Dead

Introduced Session

2025-2026 Regular Session

Bill Summary

Under current law, there is a sales and use tax exemption for certain property and items used to construct, operate, or renovate a qualified data center, as certified by the Wisconsin Economic Development Corporation. Also under current law, the equalized value of the taxable property of a new or amended tax incremental district (TID) plus the value increment of all existing TIDs in a city or village may not exceed 12 percent of the total equalized value of taxable property in the city or village. Under this bill, the 12 percent rule does not apply to a TID that contains within its boundaries a qualified data center certified by WEDC if all of the project costs of the TID are related to the qualified data center. For further information see the state and local fiscal estimate, which will be printed as an appendix to this bill.

AI Summary

This bill modifies Wisconsin's tax incremental financing (TIF) district rules specifically for districts containing qualified data centers. Currently, a city or village is limited to having TIF districts that represent no more than 12 percent of its total taxable property value. The bill creates an exception to this rule for TIF districts that exclusively contain and are related to a qualified data center (as certified by the Wisconsin Economic Development Corporation, or WEDC). Under the new provisions, such a "data center district" would be exempt from the 12 percent value limitation. Additionally, the bill stipulates that once a data center district is created under this exception, its project plan cannot be subsequently amended to include costs unrelated to the data center. When local governments calculate their TIF district value limits, they must exclude the value increment of any data center districts that qualify for this exemption. This change aims to provide more flexibility for municipalities seeking to attract and support large-scale data center investments by removing a potential financial constraint on TIF district creation.

Committee Categories

Budget and Finance

Sponsors (15)

Last Action

Fiscal estimate received (on 05/16/2025)

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