Pillen ends tax incentives for data center developers building in Nebraska
Gov. Jim Pillen signed an executive order banning data center developers from receiving tax incentives under the ImagiNE Nebraska Act. This move aims to protect state resources and public power infrastructure, coming after several Nebraska counties approved data center moratoriums. The order also establishes a task force to guide future data center legislation.
Gov. Jim Pillen issued an executive order on Monday, effectively ending tax incentives for data center developers under Nebraska’s ImagiNE Nebraska Act. The governor stated that while data centers offer benefits, developers should provide community advantages like jobs rather than relying on state tax programs. This decision follows recent actions by at least a dozen Nebraska counties, which have approved moratoriums on data center development due to local concerns over water and electricity consumption. Pillen's stance represents a shift, as his opponent, Lynne Walz, criticized him for previously lobbying for similar incentives.
TheThe executive order directs the Department of Economic Development and the Department of Water, Energy, and Environment to collaborate on data center proposals, ensuring alignment with state needs. It also establishes a data center task force under the Department of Water, Energy, and Environment to develop recommendations for the state Legislature, aiming to draft bills that protect Nebraska’s natural resources, land, water, and electric rates. Pillen emphasized that his order complements existing legislation, including LB1261, which allows private companies to build power generation facilities, and LB663, which sets strict timelines for county permit approvals, a source of concern for some residents.
Senator Mike Jacobson, who supported the order, acknowledged the heightened public dialogue around data centers. The governor's office reported that from January 2021 to June 2026, Nebraska lost $317 million in direct credit revenue to data centers, with an estimated $519 million in personal property tax exemptions. Notably, Meta Platforms Inc. has received a substantial portion of the state’s subsidies, totaling nearly $311 million, for its nine data centers in Nebraska.