La PORTE, IN (March 3, 2026) – In partnership with the La Porte Community School Corporation, the City of La Porte today shared they have approved an updated tax agreement for Microsoft’s datacenter project in La Porte, according to Mayor Tom Dermody.

This comes after Microsoft President and Vice Chair Brad Smith announced in January that the global tech company will no longer seek local property tax abatements or breaks for its new datacenter projects. Despite the completion and approval of the previous agreement, Microsoft has worked with City officials in recent weeks to create a solution that ensures Microsoft pays its full and fair share of local property taxes, adding revenue to the city and setting aside funding for the School Corporation.

The previous agreement exempted Microsoft on personal property taxes and included a payment in lieu of taxes (PILOT) of up to $100 million to the Redevelopment Commission and La Porte Community School Corporation over a 40-year term. Under the new agreement, Microsoft will pay their property taxes in full, with the City of La Porte Redevelopment Commission now allocating 15% of this revenue to La Porte Community School Corporation for a period of 20 years. In an unprecedented move, Dermody said this partnership presents a historic revenue stream that will benefit local students for generations.

“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.”

“Microsoft is proud to be part of the La Porte community, and we are glad to continue our work with City leaders to ensure our datacenter development and operation strengthens, not strains, the community,” said Michael Stockwell, Land Development, Microsoft. “This new agreement is a great opportunity for us to direct funding into an important civic service, the Community School Corporation, and is in line with our community-first commitments to be good neighbors in the communities where we build, own, and operate our datacenters.”
La Porte Community School Corporation Superintendent Dr. Sandra Wood said this caliber of support will be transformational for the district.

“This is a defining moment for our school district,” Wood said. “What the City of La Porte and Microsoft have made possible will give the students of La Porte an unmatched advantage. An opportunity of this magnitude doesn't just open doors for this generation, it builds them for every generation that follows.”

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

To learn more about Microsoft, their data center projects and the impact they have on communities like La Porte, visit aka.ms/Indiana.

MEDIA CONTACT:
Jessica Bruder Spoljaric
Director of Communications
 
CITY OF LA PORTE
801 Michigan Avenue
La Porte, IN 46350
 
T: 219-325-8368
C: 219-544-0099
cityoflaporte.com