Pa. GOP legislators propose end to data center tax credit, allow local moratoriums
Republican state legislators in Pennsylvania have proposed bills to eliminate a tax incentive program for data center developers and allow local governments to enact an 18-month moratorium on new data center applications. This comes as Gov. Josh Shapiro's administration seeks to link tax breaks to data center developers who meet 'strict accountability standards'. The proposed moratorium aims to give local authorities time to review hyperscale data center developments.
In Pennsylvania, Republican state legislators are pushing for significant changes to how data center developments are incentivized and regulated. Rep. Jamie Walsh, a Republican from Luzerne County, introduced two separate bills in the state House.
One bill aims to repeal the Computer Data Center Equipment Incentive Program, which currently offers tax breaks to developers. This move contrasts with Governor Josh Shapiro's administration's approach, which seeks to limit these tax breaks, tying them to developers who comply with the state's 'strict accountability standards'.
The second bill proposes the creation of an optional moratorium, allowing municipal governments across the state to enact an ordinance that would pause new applications for data center developments for up to 18 months. This measure is intended to provide local authorities with more time to thoroughly review proposed hyperscale data center projects.