GOP lawmakers want to eliminate data center tax incentives

GOP lawmakers want to eliminate data center tax incentives

News ClipIn Business Madison·WI·10/12/2026

Republican Wisconsin lawmakers are seeking support for legislation that would eliminate sales and use tax exemptions for large data center projects. The incentives, enacted in the 2023-25 state budget, have helped spur data center proposals but have drawn opposition over utility costs, water use, noise and environmental concerns.

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Gov: Wisconsin Legislature

A group of Republican lawmakers is seeking co-sponsors for a bill to repeal Wisconsin’s sales and use tax exemptions for large data center projects. The incentives were included in the 2023-25 state budget and have been credited with encouraging a wave of hyperscale data center proposals across the state.

The legislation comes amid declining public support for the facilities, driven by concerns about higher utility rates, water consumption, excessive noise and other environmental impacts. Sen. André Jacque and Rep. Shae Sortwell, who initially supported the incentive, are among the bill’s co-sponsors, along with Reps. Dean Kaufert and Lindee Brill, who were not serving in the Legislature when the budget was approved.