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States Push Back on Data Center Sales Tax Breaks as Wisconsin Forgoes $1.5B

Supporters say sales tax exemptions are needed to compete with the 38 states that offer incentives, but more state legislatures are resisting such breaks.

Published May 6, 2026, 12:06 PM EDT | WFMZZ

Supporters of sales tax breaks for data center projects argue the exemptions are necessary to compete with the 38 states that currently offer incentives. However, a growing number of state legislatures are pushing back, and Wisconsin has forgone about $1.5 billion in potential tax breaks.