Arizona Proposes Pausing Data Center Tax Breaks for Three Years
Arizona lawmakers have proposed a three-year moratorium on new sales tax breaks for data centers. This proposal, a last-minute addition to an $18 billion budget deal, follows a request from Gov. Katie Hobbs to repeal the tax incentive. The budget legislation is scheduled for a hearing with the Joint Appropriations Committee.
Arizona lawmakers have proposed a three-year moratorium on new sales tax breaks for data centers, a move described as the most restrictive state-level response to the industry to date. The proposal was introduced as part of an $18 billion budget deal announced by Republican leaders on Tuesday, surprising many due to its last-minute inclusion in a budget primarily focused on tax conformity and education funding.
The legislative effort comes after Democratic Gov. Katie Hobbs had previously requested the Republican-controlled legislature to repeal the existing data center tax incentive. The budget legislation, including the proposed moratorium, is set for consideration during a Joint Appropriations Committee hearing on Wednesday morning.