Scope
Utah Code sections 11-41-201 and 11-41-202, enacted by Laws 2026, chapter 373, provide that beginning 6 May 2027 a political subdivision may not provide an incentive, funded by tax increment or personal property tax, to a large load data center, except within regionally significant development zones and under the stated regional economic development authority, county energy excise tax and municipal energy tax exceptions. Agreements or survey-area resolutions made before that day may continue but may not be extended or increased. The Legislature's bill data dates the chapter's sections 6 May 2026, so the chapter appears to be in force; the status reflects the chapter and its currently operative subsection (3), while the principal incentive prohibition begins 6 May 2027.
- Geographic scope
- Utah
- Jurisdiction
- State
- Authority type
- Legislature
- Issuing authority
- Utah Legislature
Dates
- Adopted
- 25 March 2026
- Effective
- 6 May 2026
- Scheduled expiration
- See completion condition
- Ended
- Not recorded as ended
- Completion condition
- The prohibition starts on 6 May 2027 and states no end date.
- Source document
- The source page states no document date
- Last checked
- 23 September 2026 (earlier than tracker date 5 October 2026; not an automatic status change)
Summary
Utah's Laws 2026, chapter 373, added Utah Code chapter 11-41 and took effect on 6 May 2026. It bars extensions or increases of covered pre-existing incentive agreements now, and beginning 6 May 2027 stops political subdivisions from giving specified tax-increment or personal-property-tax incentives to a large load data center, except inside regionally significant development zones and under specified regional and county exceptions. The Governor signed House Bill 507 on 25 March 2026. It does not affect the state sales tax exemption for qualifying data centers.
What this does not establish
- The link between House Bill 507 and Laws 2026, chapter 373 is inferred: the codified sections print "Enacted by Chapter 373, 2026 General Session", and the Legislature's HB 507 bill data shows "Governor Signed" on 3/25/2026 with highlighted provisions that prohibit political subdivision incentives to a large load data center.
- The chapter is already law. The section identifiers in the Legislature's HB 507 bill data carry a 6 May 2026 date, which indicates the chapter took effect then; no printed effective-date clause was opened. The stored effective day, 6 May 2027, is when the incentive prohibition in section 11-41-202(1) begins. Subsection (3) already keeps incentive agreements and survey-area resolutions adopted before that day from being extended or increased.
- A large load data center is a large load customer, as defined in section 54-26-101, that is also a qualifying data center under section 59-12-102 (a new facility of at least 150,000 square feet built on or after 1 July 2016). Section 54-26-101 defines a large load customer by reference to a large-scale service request, which is a request for new or added service expected to reach 100 megawatts or more within five years.
Unresolved questions
None recorded.
Relationships
Supersession means a later instrument replaces the earlier legal effect. Repeal links identify the repeal instrument and the measure it ends. A later implementation or related letter is not treated as a replacement unless the record says so.
- Related, not a replacement Sales tax exemption for qualifying data center equipment (In effect)
Sources
https://le.utah.gov/xcode/Title11/C11_1800010118000101.pdf
- Utah Legislature, H.B. 507 (2026 General Session) bill data Governor signature date (3/25/2026) and bill-to-chapter link