Republicans Move To Repeal Data Center Tax Break They Once Championed
Four Wisconsin Republican lawmakers proposed repealing the state’s sales and use tax exemption for data center construction and operations. The incentive, enacted in the 2023-25 budget, has saved developers an estimated $1.5 billion, while supporters of repeal cite growing public opposition to data center development.
Sen. Andre Jacque and Reps. Lindee Brill, Dean Kaufert and Shae Sortwell announced legislation to repeal Wisconsin’s sales and use tax exemption for data centers. The exemption was included in the 2023-25 state budget and, according to the Legislative Fiscal Bureau, has saved developers about $1.5 billion. The lawmakers said the proposal is intended to begin a debate about the incentive and respond to public opposition.
Democratic leaders characterized the repeal effort as a political stunt, noting that a special legislative session would be needed for the bill to receive a hearing this year. The proposal comes after lawmakers from both parties introduced competing measures to regulate data center development, including requirements related to energy use, renewable power and project-funded electricity infrastructure.