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.
(2)
(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.
(5)
(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
