Arizona Legislature freezes data center tax breaks for three years

Arizona Legislature freezes data center tax breaks for three years

News ClipArizona Capitol Times·AZ·7/11/2026

Arizona House Democratic Minority Leader Oscar De Los Santos announced a significant bipartisan achievement: a three-year freeze on new data center tax subsidies. He touted this statewide moratorium as a win for affordability and a curb on corporate greed. The measure was part of a larger budget agreement aiming to benefit middle-class Arizonans.

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Gov: Arizona Legislature, House Minority Leader Oscar De Los Santos, House Democrats, Republicans, Gov. Katie Hobbs, Rep. Chris Mathis, Senate Democrats, ICE

Arizona House Democratic Minority Leader Oscar De Los Santos recently reflected on the past legislative session, highlighting a key bipartisan achievement: a three-year freeze on new data center tax subsidies. Speaking to the Arizona Capitol Times, De Los Santos, who represents Laveen, stated that this moratorium makes Arizona the only state with such a freeze and considers it a significant victory for the House Democratic caucus in their fight for an "Arizona we can afford." This measure was part of a bipartisan budget agreement that also included tax cuts for middle-class Arizonans, aiming to address corporate greed and protect working families.

During the interview, De Los Santos discussed the challenges of a divided government and the Democrats' efforts to prevent cuts to healthcare and vital social programs like Medicaid and SNAP. He also criticized Republican legislative tactics, particularly regarding ballot measures, and their stance on immigration enforcement, where he noted the budget allocated no funds to federal deportation efforts.

De Los Santos further expressed frustration over the Republican-controlled Legislature blocking bipartisan groundwater reforms, emphasizing the need for more Democrats to be elected for effective water policy. He lamented the hyper-partisan nature of the legislative body, where many Democratic-sponsored bills fail to receive hearings.

Reflecting on the session, De Los Santos named budget negotiation as his most enjoyable moment due to the leverage it offered Democrats, while the failure of good bills to even be heard was his biggest disappointment. He also pointed out that the Republican budget had "stabbed the business community in the back" by eliminating incentives for Rio Nuevo and tax incentives for solar and renewable energy, despite claims of fighting for Arizona's affordability.