Montana legislation · 2025 Regular Session
Montana HB424: Revise taxes for class 17 data center property
Status: Signed into law, May 19, 2025
What the bill says
An act revising property included in class seventeen as data center property; extending the timeframe in which the data center property must be built; revising ownership requirements; providing that the school equalization mills must be paid on class seventeen property within a district that uses tax increment financing; providing requirements for the sale of power produced by a data center; providing a definition; amending sections 7-15-4286, 15-6-156, and 15-6-162, mca; and providing an immediate effective date and a retroactive applicability date.
From the engrossed text:
AN ACT REVISING PROPERTY INCLUDED IN CLASS SEVENTEEN AS DATA CENTER PROPERTY; EXTENDING THE TIMEFRAME IN WHICH THE DATA CENTER PROPERTY MUST BE BUILT; REVISING OWNERSHIP REQUIREMENTS; PROVIDING THAT THE SCHOOL EQUALIZATION MILLS MUST BE PAID ON CLASS SEVENTEEN PROPERTY WITHIN A DISTRICT THAT USES TAX INCREMENT FINANCING; PROVIDING REQUIREMENTS FOR THE SALE OF POWER PRODUCED BY A DATA CENTER; PROVIDING A DEFINITION; AMENDING SECTIONS 7-15-4286, 15-6-156, AND 15-6-162, MCA; AND PROVIDING AN IMMEDIATE EFFECTIVE DATE AND A RETROACTIVE APPLICABILITY DATE. Section 1. Sale of power produced by data center. (1) If electrical power produced by a generator owned by a qualified data center is sold to a public utility or an electric cooperative, the price may not exceed the cost of production. (2) The cost of production (b) depreciation; (c) wages, salaries, and employee benefits of personnel located at the generator who operate and maintain the facility; (d) fuel; (e) operating supplies and materials; (f) utilities; and (g) contracted services necessary to operate and maintain the generator. (3) The cost of the production does not - 1 - Authorized Print Version - HB 424 ENROLLED BILL - 2025 69th Legislature 2025 HB 424 (b) travel; or (c) corporate legal services. (4) The public utility or electric cooperative has the right to annually audit the operating costs of the generator …