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WI SB241

WI SB241
Tax incremental financing districts containing qualified data centers. (FE)


summary

Introduced
05/09/2025
In Committee
05/09/2025
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 cannot have TIF districts that, combined, exceed 12% of the total taxable property value. The bill creates an exception to this rule for TIF districts that are entirely focused on a qualified data center certified by the Wisconsin Economic Development Corporation (WEDC). Under this legislation, if all project costs in a data center district are directly related to the data center, the 12% value limit does not apply during the district's creation or project plan amendment. Additionally, the bill stipulates that once such a data center district is established, its project plan cannot later be amended to include costs unrelated to the data center. When calculating the overall TIF district value limits, local governments must exclude the value increment of these specialized data center districts. This change appears designed to make Wisconsin more attractive for large-scale data center investments by providing more flexible tax increment financing options.

Committee Categories

Business and Industry

Sponsors (15)

Last Action

Public hearing held (on 05/21/2025)

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