Nevada lawmakers plan to introduce bill to scale back data center tax breaks
Nevada lawmakers are drafting a bill for the upcoming legislative session to repeal tax breaks for new or expanded data centers and potentially enact a statewide moratorium. Senator Dina Neal expressed concerns about financial needs, water usage, and electricity consumption. The proposal faces opposition from some legislators and a county commissioner who emphasize economic benefits and existing regulatory frameworks.
Nevada lawmakers are preparing to introduce legislation in the upcoming session aimed at repealing tax abatements for new or expanded data centers and imposing a statewide moratorium on their creation or expansion. The Joint Interim Standing Committee on Revenue documents show that Sen. Dina Neal, the JISC Chair, requested the bill's drafting, citing concerns over the financial necessity of tax breaks for "billionaire investments," significant water consumption by some data centers, and electricity usage impacting the grid.
Sen. Fabian Doñate also raised national security concerns regarding foreign-owned assets utilizing natural resources, though he acknowledged companies like Switch and TensorWave as positive examples. Opposition to the bill draft came from Assemblymembers Lisa Cole and Jason Patchett, who argued that current state laws and local jurisdiction agreements provide sufficient safeguards for Nevadans, including requirements for resident hiring, capital investment, and environmental standards. Cole emphasized Nevada's potential for economic growth from the data center industry and pointed to existing utility regulations (PUCN's Rule 9) and agreements with the Southern Nevada Water Authority and Nevada State AFL-CIO that already address infrastructure and water conservation.
Storey County Commissioner Clay Mitchell supported a localized "modernization approach to abatements," highlighting the 8,000 to 10,000 trade workers at the Tahoe-Reno Industrial Center, which includes data center projects, and the long-term job stability and apprenticeship opportunities they provide.