Pillen signs order stopping subsidies for data centers in Nebraska
Nebraska Governor Jim Pillen signed an executive order ending access to tax incentives for data centers under the state's Imagine Nebraska Act. The order aims to assess the benefits of future projects, protect state resources, and ensure development aligns with new guidelines, including those related to electricity and water usage.
Governor Jim Pillen of Nebraska signed an executive order on Monday, halting access to tax incentives for data centers provided under the state's Imagine Nebraska Act. The governor, joined by Senator Mike Jacobson and directors from economic development, revenue, and water, energy, and environment departments, stated the order is intended to allow the state to thoroughly evaluate the benefits of future data center projects. He clarified that the order is not a moratorium but a measure to attract "givers, not takers" to the state.
The executive order mandates collaboration among the Departments of Economic Development, Revenue, and Water, Energy, and Environment when reviewing project proposals to ensure they align with Nebraska's best interests. Additionally, it directs the Department of Water, Energy, and Environment to establish a data center task force. This task force will provide recommendations to the legislature, focusing on safeguarding the state's most valuable resources, including water and energy.
Governor Pillen also noted that the order builds on the previously passed LB 1261, known as the "behind-the-meter" legislation. This law permits large industrial users to work with private entities to construct their own power facilities, aiming to prevent electricity price increases for ratepayers due to heightened electrical demand from data centers. He concluded that any local entity choosing to develop a data center must now do so in accordance with the new guidelines outlined in the executive order.