Tax incremental financing districts containing qualified data centers. (FE)
Impact
If enacted, AB228 would modify existing statutes related to tax incremental financing by enabling municipalities to create TIDs specifically designed for qualified data centers without the previously established 12% limit on taxable property value. This change is intended to incentivize the development of data centers, which are often substantial contributors to local economies through job creation and infrastructure investments. The exemption encourages municipalities to foster growth in the technology and data sectors, aligning with broader economic development objectives.
Summary
Assembly Bill 228 proposes changes to the rules governing tax incremental financing districts (TIDs) that contain qualified data centers. Under current legislation, there is a cap on the taxable property value in a TID, which cannot exceed 12% of the total taxable property in the municipality. This bill seeks to exempt TIDs with qualified data centers from this limitation, allowing for more investment and expansion of data center infrastructure without the restrictions of the existing property value cap. The bill aims to streamline the financing process for these centers and potentially attract new businesses in the tech sector to Wisconsin.
Contention
While proponents argue that the bill will position Wisconsin as a competitive location for tech companies, opponents may raise concerns about the possible loss of tax revenue for local governments, as well as the prioritization of financing for data centers over other community projects. Critics could argue that such legislation might lead to an imbalance in funding for public services and infrastructure that serve broader community needs. Additionally, questions may arise regarding how the certification of data centers by the Wisconsin Economic Development Corporation will be managed and monitored for compliance with the intent of the legislation.
Limitations on the total value of taxable property that may be included in a tax incremental financing district created in the city of Stevens Point. (FE)
Limitations on the total value of taxable property that may be included in a tax incremental financing district created in the city of Stevens Point. (FE)
Limitations on the total value of taxable property that may be included in a tax incremental financing district created in the city of Evansville. (FE)
Limitations on the total value of taxable property that may be included in a tax incremental financing district created in the city of Evansville. (FE)