UtahUtah sets rules for regional development zones and data center incentives
Utah law lets cities and counties seek approval for regional development zones and limits when local governments may use public money to support large data centers.
What it does
Cities and counties may propose regional development zones. A state committee reviews each proposal and sets limits on the zone's boundaries and use of tax revenue.
Local governments generally may not use certain public money to support large data centers, though the law allows specific zone-fund and energy-tax exceptions.
A county may tax energy delivered to certain large users on unincorporated land, at a rate of up to 6%. The county chooses whether to impose the tax.
Certain development revenues go into a state account for possible tax relief, water projects, Great Salt Lake watershed protection, transit, and energy work. Spending requires lawmakers' approval.
Argument forPublic meetings and review by a state committee could help residents and local taxing entities weigh plans before tax revenue supports a regional project.
Argument againstLimits on local incentives could make it harder for cities and counties to compete for large data centers, though the law allows several exceptions.
More detail
Cities and counties may propose regional development zones for review by a state committee. A city or county may propose a zone within its jurisdiction, alone or with another creating entity. Before applying, the creating entity must seek public comment and feedback from affected school districts and local taxing entities. The committee may approve, change, or deny a proposal and sets the zone's boundaries and limits on revenue use. An approved zone takes effect on January 1: the next January 1 if approved by September 30, or the January 1 after that.
Political subdivisions may not provide certain public-money incentives to large load data centers. The restriction covers counties, municipalities, special districts, public infrastructure districts, community reinvestment agencies, and other listed local entities. Exceptions allow certain zone funds and energy-tax revenue to support a data center, subject to limits. A sales and use tax exemption does not count as an incentive under this rule. Qualifying earlier agreements may continue under their terms, but may not be extended or increased. The restriction begins May 6, 2027. Qualifying agreements made, or certain steps taken with intent to provide an incentive, before that date may continue but cannot be extended or increased.
A county may tax energy delivered to certain large users on unincorporated land. The tax may apply to a large load customer or qualifying data center located on unincorporated land in the county. The county decides whether to impose the tax, which may be up to 6% of the delivered value of the energy. A user that is both a large load customer and a qualifying data center is subject to only one county tax under this law. If the supplier passes the tax on, it must show it as a separate charge. A county's decision to impose, change, or repeal the tax takes effect on the first day of a calendar quarter, at least 90 days after notice to the State Tax Commission.
The law directs specified revenues into a state account for uses lawmakers approve. The State Reinvestment Restricted Account is within the state's General Fund. The account receives specified regional-zone and Inland Port Authority revenues, plus interest and investment earnings. Spending requires an appropriation. Allowed uses include tax relief, major water projects, Great Salt Lake watershed protection, transit, and energy development. Local-source money may be used outside the area where it was raised only for one of those listed purposes. The account takes effect May 6, 2026. Money may be spent only after an appropriation.
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Where it stands
- Introduced
- Passed House
- Passed Senate
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- Mar 25Governor Spencer Cox SignedBecame Law
- Mar 16House/ to GovernorTo Governor
- Mar 16House/ received enrolled bill from PrintingMinor
- Mar 12House/ enrolled bill to Printing
- Mar 12Enrolled Bill Returned to House or SenateMinor
- Mar 10Draft of Enrolled Bill Prepared
- Mar 10Bill Received from House for EnrollingMinor
- Mar 7House/ signed by Speaker/ sent for enrollingMajor
- Mar 7House/ received from SenateMinor
- Mar 7Senate/ to House
- Mar 7Senate/ signed by President/ returned to HouseMajor
- Mar 7Senate/ received from HouseMinor
- Mar 6LFA/ fiscal note publicly available for HB0507S04
- Vote recorded House Conference Committee - Final Passage. Result: pass.Lower
- Vote recorded Senate Conference Committee - Final Passage. Result: pass.Upper
- Mar 6LFA/ fiscal note sent to sponsor for HB0507S04
- Mar 6House/ to Senate
- Mar 6House Conference Committee - Final Passage [Senate President]Major
- Mar 6House Motion to Adopt Joint Conference Comm Rpt [Conference Committee]
- Mar 6House/ received from SenateMinor
- Mar 6Senate/ to House
- Mar 6Senate Conference Committee - Final Passage [Conference Committee]Major
- Mar 6Senate Motion to Adopt Joint Conference Comm Rpt [Conference Committee]
- Mar 6Senate/ received from HouseMinor
- Mar 6Conference Committee Report [Conference Committee]
- Mar 6Bill Substituted by Conference Committee [Conference Committee]Major
- Mar 6LFA/ bill sent to agencies for fiscal input for HB0507S04
- Mar 6LFA/ bill assigned to staff for fiscal analysis for HB0507S04
- Mar 6House/ to Senate
- Mar 6House Conference Committee Appointed [Conference Committee]Minor
- Mar 6House/ received from SenateMinor
- Mar 6Senate/ to House
- Mar 6Senate Conference Committee Appointed [Conference Committee]Minor
- Mar 6Senate/ refused to recede from Senate amendments
- Mar 6House/ to Senate
- Mar 6House/ refuse to concur with Senate amendment
- Mar 6House/ placed on Concurrence Calendar
- Mar 6House/ received from SenateMinor
- Mar 5Senate/ to House with amendments
- Vote recorded Senate/ passed 2nd & 3rd readings/ suspension. Result: pass.Upper
- Mar 5Senate/ passed 2nd & 3rd readings/ suspensionPassed Senate
- Mar 5Senate/ substituted
- Mar 5Senate/ uncircled
- Mar 5LFA/ fiscal note publicly available for HB0507S03
- Mar 5LFA/ fiscal note sent to sponsor for HB0507S03
- Mar 5LFA/ bill sent to agencies for fiscal input for HB0507S03
- Mar 5LFA/ bill assigned to staff for fiscal analysis for HB0507S03
- Mar 4Senate/ circled
- Mar 4Senate/ 2nd & 3rd readings/ suspensionMinor
- Mar 2Senate/ placed on 2nd Reading Calendar
- Mar 2Senate/ committee report favorable [Senate Economic Development and Workforce Services Committee]Minor
- Mar 2Senate Comm - Favorable Recommendation [Senate Economic Development and Workforce Services Committee]Minor
- Mar 1LFA/ fiscal note publicly available for HB0507S02
- Mar 1LFA/ fiscal note sent to sponsor for HB0507S02
- Feb 27Senate/ to standing committee [Senate Economic Development and Workforce Services Committee]Minor
- Feb 26Senate/ 1st reading (Introduced)Minor
- Feb 25Senate/ received from HouseMinor
- Vote recorded House/ passed 3rd reading. Result: pass.Lower
- Feb 25House/ to Senate
- Feb 25House/ passed 3rd readingPassed House
- Feb 25House/ substituted
- Feb 25House/ uncircled
- Feb 25LFA/ bill sent to agencies for fiscal input for HB0507S02
- Feb 25LFA/ bill assigned to staff for fiscal analysis for HB0507S02
- Feb 24House/ circled
- Feb 24House/ 3rd readingMinor
- Feb 23LFA/ fiscal note publicly available for HB0507S01
- Feb 23LFA/ fiscal note sent to sponsor for HB0507S01
- Feb 19House/ 2nd readingMinor
- Feb 19House/ comm rpt/ substituted [House Economic Development and Workforce Services Committee]
- Feb 19House Comm - Favorable Recommendation [House Economic Development and Workforce Services Committee]Minor
- Feb 19House Comm - Substitute Recommendation [House Economic Development and Workforce Services Committee]Major
- Feb 18LFA/ bill sent to agencies for fiscal input for HB0507S01
- Feb 18LFA/ bill assigned to staff for fiscal analysis for HB0507S01
- Feb 13House/ to standing committee [House Economic Development and Workforce Services Committee]Minor
- Feb 12House/ received fiscal note from Fiscal AnalystMinor
- Feb 11LFA/ fiscal note publicly available for HB0507
- Feb 11LFA/ fiscal note sent to sponsor for HB0507
- Feb 11LFA/ fiscal note sent to sponsor for HB0507
- Feb 6House/ 1st reading (Introduced)Minor
- Feb 6House/ received bill from Legislative ResearchMinor
- Feb 6LFA/ bill sent to agencies for fiscal input for HB0507
- Feb 6LFA/ bill assigned to staff for fiscal analysis for HB0507
- Feb 6Numbered Bill Publicly Distributed
- Feb 6Bill Numbered but not DistributedIntroduced
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