Texas Senate Bill SB1778

Texas 2009 - 81st Regular

• Out of Senate Committee: 4/22/09

Caption

Relating to the eligibility of property used in connection with a data center for economic benefits authorized by the Texas Economic Development Act.

Impact

If enacted, SB1778 would significantly impact property tax regulations by allowing data centers to receive limitations on appraised values, thereby reducing their tax burden. This change could lead to an influx of data centers in the state, which may create new job opportunities and foster technological advancement. The inclusion of data centers in a list of qualifying entities for economic incentives could position Texas as a leading hub for data processing and storage, contributing to both local and state economic growth.

Summary

Senate Bill 1778 focuses on amending the Texas Tax Code to include data centers among the properties eligible for economic benefits under the Texas Economic Development Act. The bill expands the definition of qualifying entities to include data centers, which are described as establishments engaged in electronic data processing and storage services. By doing so, the legislation aims to incentivize the development and establishment of data centers in Texas, potentially boosting the state's economy and attracting technological investments.

Contention

However, there may be points of contention surrounding the bill. Critics could argue that the provision of additional tax incentives for data centers may lead to an imbalance in the economic benefits provided to various sectors, potentially diverting resources away from other critical public needs. Additionally, concerns may arise regarding the environmental impact of increasing data center operations, as these facilities are often resource-intensive, both in terms of energy consumption and water usage. Balancing economic growth and environmental sustainability might become a pivotal discussion as SB1778 progresses through the legislative process.