Repeal or Limit Corporate Tax Exemptions

As stated by Good Jobs First:1 “Explicitly disqualify data centers from sales and use-tax exemptions, corporate income tax credits (for investment or hiring), personal income tax diversions, and utility tax exemptions.” 

States should also disqualify data centers from local property tax abatements, millage rate preferences, and exemptions on power purchases.

Strong example

Minnesota SF3265 repealed electricity sales-tax exemption for data centers.

  1. Kasia Tarczynska, “Data Centers: Key Reforms for State Subsidy Legislation,” Good Jobs First, September 23, 2025, https://goodjobsfirst.org/data-centers-best-reforms-for-state-subsidy-legislation. ↩︎