Wisconsin Approves $2 Billion Tax Break for Data Centers Amid Legislative Collaboration
A sales tax exemption for data centers in Wisconsin, costing over $2 billion, was approved by the Republican Legislature and signed by Governor Evers. This incentive aims to stimulate economic growth, aligning with practices in 38 other states offering similar tax breaks.
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In July 2023, Wisconsin's Republican-controlled Legislature passed a budget provision granting a sales tax exemption to data centers, which was signed by Democratic Governor Evers. The Legislative Fiscal Bureau reported this tax break will result in a loss of over $2 billion in sales tax revenue, primarily from large data centers in Beaver Dam, Port Washington, and Mount Pleasant.
The incentive was introduced to promote economic growth, reflecting a trend as 38 states provide similar tax incentives for data centers. The high projected costs raise concerns about the long-term fiscal impact on state revenue.
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