Wisconsin Lawmakers Proposed Repealing Data Center Tax Break
A new legislative proposal aims to end a $1.5 billion tax exemption for data center developers in Wisconsin.
Updated on Oct. 10, 2026 in Data Centers
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Four Republican legislators have introduced a bill to repeal a sales and use tax exemption for data center developers that was included in the 2023-25 state budget. The exemption has saved developers an estimated $1.5 billion in taxes since its implementation.
Why it matters
The proposal aims to shift state fiscal policy by removing incentives for large-scale data center construction, citing public opposition and concerns regarding the use of tax codes for corporate development. This marks a potential pivot point for the state’s strategy on infrastructure subsidies.
The proposed bill seeks to end an exemption that covers property and equipment sales for constructing or operating data centers. This currently removes costs that would otherwise fall under standard state and use tax obligations.
The players
Andre Jacque
A Republican state senator who authored the repeal bill and is retiring from the legislature.
Lindee Brill
A Republican representative and co-author of the bill.
Dean Kaufert
A Republican representative co-authoring the bill who is retiring from the legislature.
Shae Sortwell
A Republican representative and co-author of the bill.
Legislative Fiscal Bureau
The state agency responsible for conducting the $1.5 billion fiscal impact analysis.
The details
The tax exemption currently applies to the purchase of property and equipment used for the construction, renovation, or operation of data centers. To pass a repeal, the Legislature must take action in a special session or during the next legislative session. The sponsors characterize the existing policy as a form of crony capitalism that the state should avoid.
Timeline
July 2023: Biennial budget law signed including the tax exemption.
March 2026: Legislative Fiscal Bureau released the $1.5 billion savings analysis.
October 2026: Four Republican lawmakers proposed the repeal legislation.
January 2027: The new Legislature takes office and will likely resume the debate.
The Tech Race
The proposed bill directly challenges the 2023-25 Wisconsin state budget's incentive structure for infrastructure. This legislative move signals a potential reversal of the state’s strategy to attract large-scale data center investment through tax relief.
The proposal may influence future construction timelines for large-scale data facilities across Wisconsin if developers lose their current tax exemptions. Residents should monitor the upcoming January 2027 legislative session to see if the repeal gains enough support to become law.
The takeaway
Legislative efforts to curb infrastructure incentives remain a key trend to monitor for state fiscal policy. Stakeholders should track the January 2027 session, as the retirement of primary authors may shift the momentum for this bill.
What happens next
The legislative debate is scheduled to resume in January 2027 when the new Legislature takes office.
Further reading
Explore the broader state landscape for Data Centers.
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