Wisconsin Push to Repeal Data Center Tax Exemptions
State leaders seek to end $1.5 billion in corporate tax breaks that benefit data center developers in the region.
Updated on Oct. 29, 2026 in Data Centers
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Should states eliminate tax exemptions for data center developers?
Senator Andre Jacque and comedian Charlie Berens have called on Wisconsin lawmakers to repeal sales tax exemptions for data center developers. The incentives, which were passed in the July 2023 biennial budget, are estimated to save these companies more than $1.5 billion.
Why it matters
Critics argue these tax breaks, which are not available to most other business sectors, provide unnecessary public subsidies to some of the wealthiest corporations. The proposal highlights a growing political friction regarding how states should manage the infrastructure costs associated with the rapid expansion of large-scale computing facilities.
The state's current tax code provides sales tax exemptions specifically for data center developers, a provision enacted in the 2023 biennial budget. This policy is estimated to result in $1.5 billion in savings for these developers, a figure that remains a central point of contention among critics of the incentive structure.
The players
Senator Andre Jacque
A Wisconsin state senator and co-sponsor of the bill to end data center tax exemptions who is not seeking re-election.
Charlie Berens
A Wisconsin-based comedian who joined the call for legislative action to end data center tax subsidies.
Tony Evers
The Governor of Wisconsin who signed the 2023 biennial budget containing the initial data center tax exemptions.
David Crowley
A Democratic gubernatorial candidate who has stated he would sign a repeal of the data center tax incentives if passed.
Tom Tiffany
A Republican gubernatorial candidate who has expressed support for eliminating the data center tax subsidies.
The details
The current tax exemption was established as a provision within the 2023 biennial budget signed by Governor Tony Evers. Repealing these incentives requires new legislative action to amend the current state tax code. Critics characterize the policy as a subsidy directed toward some of the largest, most profitable companies, which they argue should not receive preferential tax treatment compared to other local businesses.
Timeline
July 2023: Governor Evers signed the biennial budget, enacting the tax exemptions.
October 2026: Charlie Berens and Senator Jacque requested the repeal of the tax exemptions.
January 2027: Senator Andre Jacque is scheduled to leave office.
The Tech Race
The proposal to end these exemptions signals a re-evaluation of the state-level tax incentives that have proliferated to attract massive data center projects. It follows a national trend where policymakers are increasingly scrutinizing the public-cost-to-benefit ratio of these capital-intensive, low-employment facilities.
Residents should watch for a potential special legislative session, as the proposed repeal is unlikely to advance before the new year without one. The outcome will determine whether these tax-exempt status benefits for data center developers remain in place or are rescinded by the state legislature.
The takeaway
The effort to repeal the $1.5 billion tax incentive highlights a shift in how state officials view corporate subsidies for large-scale computing infrastructure. Readers should monitor whether the incoming legislative session schedules a special hearing to address these provisions.
Further reading
For broader trends in infrastructure incentives, see our coverage of Data Centers.
Source note: This article includes information reported by Wbay.
Live Poll
Should states eliminate tax exemptions for data center developers?
