The bill revises the classification and taxation of property designated as data center property in Montana. It amends sections 15-6-156 and 15-6-162 of the Montana Code Annotated (MCA) to extend the timeframe for construction of qualified data centers from a deadline of June 30, 2027, to June 30, 2037. Additionally, the bill increases the period for which dedicated communications infrastructure is taxed at a lower rate from 15 years to 25 years. It also introduces new ownership requirements, specifying that a qualified data center must be under single ownership, which can include a wholly owned subsidiary or a parent company with a 100% ownership interest.

Furthermore, the bill clarifies the definition of qualified data centers and includes provisions for electrical generation and storage systems used onsite. It establishes that property identified as class seventeen is taxed at a rate of 0.9% of its market value. The bill provides for an immediate effective date upon passage and approval, as well as retroactive applicability to property tax years beginning after December 31, 2024.

Statutes affected:
LC Text: 15-6-156, 15-6-162