Senate Bill 241 proposes an amendment to the existing tax incremental financing (TIF) laws in Wisconsin, specifically regarding tax incremental 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 introduces new legal language that defines a "data center" as a qualified data center certified under existing law and establishes that a "data center district" is a TID that encompasses such a center. It specifies that if all project costs are related to the data center, the 12 percent limit does not apply to the creation or amendment of the TID. Additionally, it prohibits any amendments to the project plan of a data center district that would include costs unrelated to the data center, ensuring that the exemption is strictly maintained. The bill aims to encourage the development of data centers by providing more flexibility in TIF financing.