Texas Lawmakers Scrutinize $3.3 Billion Cost of Data Center Tax Incentives
Lawmakers are considering tighter rules as 138 exempt facilities and five pending applications could cost the state $3.3 billion in revenue.
- On Monday, July 27, the Texas Senate Finance Committee held a hearing to evaluate state sales tax exemptions for data centers, as lawmakers expressed concern that rapid industry growth has far outpaced original fiscal projections.
- Lawmakers originally estimated the program would cost $15 million every two years, but surging demand has pushed projected state revenue losses to $3.3 billion, a shift State Sen. Paul Bettencourt highlighted.
- The Comptroller's Office revealed that only 20 of the 138 participating data centers have been audited, with six failing to meet program requirements, indicating significant oversight gaps.
- While the Data Center Coalition argues the exemptions foster vital economic activity, Agriculture Commissioner Sid Miller urged Gov. Greg Abbott to call a special session to establish stricter regulations.
- Legislators plan to file bills addressing the tax incentive framework when the Texas Legislature returns to Austin in January, with Senate Finance Committee Chair Joan Huffman indicating commitment to reform or repeal.
23 Articles
23 Articles
Texas Senators backtrack on voting for bill enabling rapid data center expansion - Regional Media News
(The Center Square) - Republican state senators are backtracking on their previous support for giving billions of dollars in tax breaks to data centers, which provided incentives for rapid data center expansion now causing backlash among voters. "What we thought we were voting for back in 2013, it's a much different animal these days," Texas Senate Finance Committee Chair Sen. Joan Huffman, R-Houston, said. The committee held a hearing to addres…
The Killeen Daily Herald
KTBSTexas lawmakers reconsider data center tax breaks as costs skyrocket
AUSTIN, Texas— Texas lawmakers are taking a fresh look at a tax break for data centers as the cost to taxpayers continues to climb.During a Senate Finance Committee hearing Monday, lawmakers questioned whether a 2013 sales tax exemption for qualifying…
Texas lawmakers question whether multibillion-dollar data center tax break still benefits the state
Thirteen years ago, when Texas created the tax deal for data centers, state lawmakers expected to lose — at most — $14 million in tax revenue in Texas' next 2-year budget cycle. Now, state projections show it could lead to Texas forgoing more than $3 billion in the 2028-29 biennium.
Texas lawmakers scrutinize $3.3 billion cost of data center tax incentives
Texas lawmakers recently examined sales tax incentives for data centers during a Senate Finance Committee hearing, noting that the exemptions could cost the state $3.3 billion in forgone taxes by the 2028-29 budget cycle.
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