Wisconsin GOP Seeks Repeal of Data Center Tax Exemption
Four Wisconsin Republicans have proposed repealing the state sales-tax exemption for data center construction, equipment and operations created under the 2023-25 budget. The proposal is intended to begin a debate for the next Legislature, but it would require a special session to receive a bill number and public hearing during the current legislative calendar.
Sen. Andre Jacque and Reps. Lindee Brill, Dean Kaufert and Shae Sortwell are seeking to repeal Wisconsin’s data center sales- and use-tax exemption, arguing that the tax code should not support what they characterize as crony capitalism. The exemption, created through Wisconsin Act 19 and administered by the Wisconsin Economic Development Corporation, has been credited with roughly $1.5 billion in developer savings or forgone state revenue, plus an estimated $369 million annually after facilities begin operating.
The proposal’s sponsors have presented it primarily as the start of a policy discussion rather than an effort likely to take effect immediately. The measure faces a procedural obstacle because a special legislative session would be needed for a bill number and public hearing, while broader debate continues over data centers’ demands on Wisconsin’s energy infrastructure and whether developers should pay for related power investments.