The proposed bill, titled the "Replacement Electric Distribution Infrastructure Specific Tax Act," aims to exempt certain qualified replacement electric distribution infrastructure from ad valorem property taxes starting after December 31, 2025. This infrastructure includes utility personal property such as poles, wires, and other components that replace depreciated electric distribution systems within the same service territory. The bill defines "qualified replacement electric distribution infrastructure" and outlines the criteria it must meet to qualify for the tax exemption.

In lieu of the property tax exemption, the bill establishes a specific annual tax on the qualified infrastructure, calculated at a rate of 30 mills based on the taxable value of the replaced infrastructure. This specific tax will be adjusted annually according to the Consumer Price Index. The tax will be collected and disbursed similarly to other property taxes, with provisions for penalties related to unpaid taxes. The act will only take effect if House Bill No. 4787 is also enacted into law.