Assembly Bill 228 proposes the creation of a new statute, 66.1105 (17) (c), which establishes provisions for tax incremental financing districts (TIDs) that include qualified data centers. Currently, there is a limitation that the equalized value of taxable property in a new or amended TID, combined with the value increments of existing TIDs, cannot exceed 12 percent of the total equalized value of taxable property in a city or village. This bill seeks to exempt TIDs containing qualified data centers from this 12 percent rule, provided that all project costs associated with the TID are related to the data center.

The bill outlines specific definitions, including what constitutes a "data center" and a "data center district." It stipulates that if a data center district meets the criteria, the 12 percent limit does not apply to its creation or project plan amendments. Furthermore, any project plan for a data center district that is exempt from the 12 percent findings requirement cannot be amended to include costs unrelated to the data center. Additionally, when calculating the value increment for a TID, the value of any data center district exempted from the 12 percent rule will not be included in the calculation.