Data Center Tax Breaks Promised ‘No Significant Fiscal Impact’: States Are Losing Billions

Photo credit: Mathis Römer via Flickr. Public Domain. Article by Joshua Mitchell. Tech Times – August 3, 2026.

When Texas lawmakers created a sales tax exemption for qualifying data centers in 2013, their budget office gave it a formal review and produced a fiscal note with a specific cost estimate: no significant fiscal impact. The exemption, legislators were told, would cost the state roughly $14.6 million over the 2014–15 budget cycle, according to Texas Senate Finance Committee testimony. […]

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