The data center tax break Hoosiers couldn't see

13 Investigates has revealed that Indiana granted hundreds of millions of dollars in sales and use tax exemptions to data centers, a fact that was largely kept from public view until the news outlet and the government watchdog group Good Jobs First began asking questions. The investigation uncovered a total of $655 million in tax breaks that data centers did not have to pay.

The findings show that a significant portion of these exemptions, $561 million, was received by tech giant Amazon. These tax breaks contrast with the sales tax paid by ordinary citizens, which helps fund public services such as roads, public safety, and schools. The Indiana Economic Development Corporation (IEDC) acknowledged that while the numbers were available, they were not being communicated properly. The IEDC also noted that some 2025 reports from data centers are still outstanding, indicating the total exemption amount could increase further. This figure also does not account for local property tax breaks that may have been granted.

The IEDC defends the tax breaks as a competitive strategy to attract major investment, emphasizing that the state is not directly writing checks to companies. The report concludes by posing a question to the public regarding whether money not collected by the state still constitutes a public cost.