Pennsylvania bills would tie data center tax break to transparency, sustainability
Pennsylvania lawmakers are advancing three bills concerning data center development. These bills aim to link sales tax breaks to transparency, allow municipalities to enact temporary pauses for zoning adjustments, and codify sustainable development standards, balancing economic benefits with environmental and community concerns.
Pennsylvania lawmakers are actively pursuing legislation to regulate data center development across the commonwealth, aiming to balance economic growth with community and environmental concerns. Three key bills have advanced through House committees.
Representative Joe Ciresi (D-Montgomery) introduced House Bill 2359, which passed the House Energy Committee. This bill would require data center developers to pledge transparency in communities where they seek to build, specifically linking this requirement to eligibility for a state sales tax exemption on computer equipment. Ciresi cited an instance in his district, Limerick Township, where developers sought a non-disclosure agreement and refused to name the occupying company for a proposed 1.5 million square foot facility, prompting his legislative effort.
Concurrently, the House Local Government Committee unanimously approved a bill by Representative Paul Friel (D-Chester) that would allow municipalities a 180-day "pause" on data center considerations. This pause is intended to give local officials time to develop tailored zoning ordinances to address issues like land use, energy consumption, water resources, and infrastructure impacts, without blocking new proposals entirely.
Finally, the Finance Committee advanced House Bill 2650, introduced by Representative Joe Webster (D-Montgomery), which seeks to codify Governor Josh Shapiro's Responsible Infrastructure Development (GRID) Standards. This legislation would replace the current sales tax exemption with one requiring data center developers to obtain state certification based on benchmarks for energy affordability, community engagement, workforce development, and environmental protection. While some lawmakers support these conditions, others, like Representative Eric Nelson (R-Westmoreland), expressed concern that new requirements could deter development and undermine the benefits data centers bring, such as the reclamation of former mine sites.