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A BILL TO BE ENTITLED
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AN ACT
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relating to the eligibility of property used for a large data center |
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project for ad valorem tax benefits under the Texas Economic |
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Development Act. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 313.021(2), Tax Code, is amended to read |
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as follows: |
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(2) "Qualified property" means: |
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(A) land: |
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(i) that is located in an area designated as |
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a reinvestment zone under Chapter 311 or 312 or as an enterprise |
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zone under Chapter 2303, Government Code; |
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(ii) on which a person proposes to |
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construct a new building or erect or affix a new improvement that |
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does not exist before the date the person submits a complete |
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application for a limitation on appraised value under this |
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subchapter; |
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(iii) that is not subject to a tax abatement |
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agreement entered into by a school district under Chapter 312; and |
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(iv) on which, in connection with the new |
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building or new improvement described by Subparagraph (ii), the |
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owner or lessee of, or the holder of another possessory interest in, |
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the land proposes to: |
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(a) make a qualified investment in an |
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amount equal to at least the minimum amount required by Section |
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313.023; and |
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(b) create at least 25 new qualifying |
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jobs; |
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(B) the new building or other new improvement |
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described by Paragraph (A)(ii); and |
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(C) tangible personal property: |
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(i) that is not subject to a tax abatement |
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agreement entered into by a school district under Chapter 312; |
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(ii) for which a sales and use tax refund is |
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not claimed under Section 151.3186; and |
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(iii) except for new equipment described in |
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Section 151.318(q) or (q-1), that: |
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(a) is first placed in service in the |
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new building, in the newly expanded building, or in or on the new |
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improvement described by Paragraph (A)(ii), or on the land on which |
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that new building or new improvement is located, if the personal |
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property is ancillary and necessary to the business conducted in |
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that new building or in or on that new improvement; or |
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(b) is first placed in service in the |
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new building, in the newly expanded building, or in or on the new |
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improvement described by Paragraph (A)(ii), or on the land on which |
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that new building or new improvement is located to replace personal |
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property described by Sub-subparagraph (a) that has a useful life |
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of less than five years. |
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SECTION 2. Section 313.024(b), Tax Code, is amended to read |
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as follows: |
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(b) To be eligible for a limitation on appraised value under |
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this subchapter, the entity must use the property for: |
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(1) manufacturing; |
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(2) research and development; |
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(3) a clean coal project, as defined by Section 5.001, |
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Water Code; |
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(4) an advanced clean energy project, as defined by |
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Section 382.003, Health and Safety Code; |
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(5) renewable energy electric generation; |
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(6) electric power generation using integrated |
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gasification combined cycle technology; |
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(7) nuclear electric power generation; |
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(8) a computer center primarily used in connection |
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with one or more activities described by Subdivisions (1) through |
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(7) conducted by the entity; [or] |
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(9) a Texas priority project; or |
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(10) a large data center project as defined by Section |
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151.3595. |
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SECTION 3. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2015. |