The City of La Porte has approved an updated tax agreement for Microsoft’s data center project, according to Mayor Tom Dermody.

The move follows a January announcement from Microsoft President Brad Smith that the company would no longer seek local property tax abatements for new data centers.

Under the revised agreement, Microsoft will pay property taxes in full. The city’s Redevelopment Commission will allocate 15 percent of that revenue to the school corporation for 20 years.

School leaders call the agreement transformational, saying it will create a historic revenue stream benefiting La Porte students for generations.