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Tax committee hears bill to extend Class 17 to data centers that generate on-site power
Summary
A Montana House bill would expand the state's Class 17 property classification to new data centers that provide behind-the-meter electricity generation and allow excess power to flow to the grid during governor-declared emergencies; committee held a hearing but took no vote.
Rep. Katie Zolnicov introduced House Bill 4 24 to the Montana Tax Committee on Thursday, proposing to expand the state's existing Class 17 property classification to include new data centers that generate the majority of their power on-site.
The bill would allow data centers that supply up to 80% of their own electrical load with behind-the-meter generation to qualify for the Class 17 tax treatment; Rep. Katie Zolnicov, the sponsor, told the committee, "we are trying to incentivize any data centers that come to the state to provide their own electrical generation behind the meter." She said the 80% threshold is waived if the governor declares an electrical generation emergency, allowing a qualifying data center to route its on-site generation to the local grid during an emergency.
Why it matters: supporters said the bill would help Montana compete for data center investment and bolster local grid resilience. "Sabey Data Centers is an industry leader," attorney Mark Taylor testified on behalf of…
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