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 infrastructure within the same service territory. The bill defines "qualified replacement electric distribution infrastructure" and establishes criteria for what qualifies for the exemption, including that it must be installed by a regulated electric utility or cooperative and not expand the service territory.

In lieu of the property tax exemption, the bill introduces 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 unpaid taxes to be subject to forfeiture and foreclosure. The bill also stipulates that it will not take effect unless another related bill is enacted into law.