LA PORTE, Ind. -- According to La Porte Mayor Tom Dermody, the City of La Porte in partnership with the La Porte Community School Corporation have approved an updated tax agreement for the Microsoft data center project.

In January, Microsoft President and Vice Chair Brad Smith announced the company will no longer seek local property tax abatements or breaks for its new data center projects.

City officials say the previous agreement exempted Microsoft on personal property taxes and included a payment in lieu of taxes of up to $100 million to the Redevelopment Commission and La Porte Community School Corporation over a 40-year term.

Officials say the updated agreement will require Microsoft to pay their property taxes in full, with the Redevelopment Commission now allocating 15 percent of this revenue to La Porte's school district for 20 years.

“The new tax agreement is great news for our city and our future,” Dermody said. “This arrangement provides greater benefits when compared to other structures we’ve seen, with significantly more lucrative revenue streams for both the city and the school corporation. Microsoft has demonstrated a true commitment to our community, and this partnership we have forged will benefit local families and students for generations to come.”

The agreement was approved Tuesday morning by the Redevelopment Commission and the La Porte Community School Board.

You can learn more about Microsoft's data center projects and the impact they have on communities online.