Pennsylvania Lawmaker Proposes Elimination of Sales Tax Exemption for Data Centers
A Pennsylvania lawmaker is advocating for the elimination of sales tax exemptions for data center equipment, arguing that the rapid growth of the sector makes the exemption unnecessary. Representative Greg Vitali highlights significant profits from major companies like Amazon and Microsoft, asserting that the state has already lost over $80 million in revenue due to the exemption, with potential losses of an additional $235 million by 2030 if it remains in place.
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A Pennsylvania Representative is proposing the removal of sales tax exemptions for equipment purchased by data centers. This exemption was established in 2021 to attract developers, and as of January, there are numerous active and developing data center sites in the state.
Representative Greg Vitali contends that the exponential growth of data centers indicates the exemption is no longer necessary. He cites significant net incomes of major companies, with Amazon at $59 billion and Microsoft at $88 billion in 2024, to support his argument. The Commonwealth has lost over $80 million in revenue since the 2023-2024 fiscal year due to this exemption, and if it continues, it could lose an additional $235 million by 2030.
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