Tax incentives and clawbacks laws by state

Bills that moved most recently

The 25 open tax incentives and clawbacks bills with the latest action. The Data Centers and Energy Load Tracker follows all 141.

• 19 October 2026

  Pennsylvania HB 1667: An Act amending the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, providing for residential clean energy tax credit; repealing provisions relating to Pennsylvania Economic Development for a Growing Economy (PA EDGE) Tax Credits; providing for Pennsylvania Economic Development for a Growing Economy (PA EDGE) Tax Credits and for energy ratepayer protection; establishing the Energy Ratepayer Protection Fund; in manufacturing and investment tax credit, further providing for tax credit certificates and providing for limitations; and making a repeal.

  What it would do: Eliminates the gross receipts tax on electric energy sales for fiscal years beginning after June 30, 2026, requires entities to pass through tax elimination or reduction to consumers as reduced state tax surcharges, and increases manufacturing and investment tax credit limits from $30,000,000 to $60,000,000.

  Passed chamber

• 16 September 2026

  Congress H.R. 10448: Reverse Big Ugly Tax Breaks for Data Centers Act

  What it would do: Amends the Internal Revenue Code to exclude qualified data center property from bonus depreciation and from qualified opportunity zone business property treatment, effective for property placed in service after enactment.

  In committee

• 16 September 2026

  Congress S. 5418: No Tax Breaks for Data Centers Act

  What it would do: Amends the Internal Revenue Code to exclude data centers from the definition of qualified opportunity zone businesses, making them ineligible for opportunity zone tax benefits. The amendment applies to interests and property acquired after enactment.

  In committee

• 14 September 2026

  New Jersey A 5482: Establishes six month moratorium on approvals, construction, expansion, subsidies, and tax incentives for certain artificial intelligence data centers; creates Artificial Intelligence Data Center Impact Commission.

  What it would do: Establishes a six-month moratorium on state approvals, permits, subsidies, and tax incentives for artificial intelligence data centers exceeding 10 megawatts electrical demand. Creates a 12-member commission to study impacts on electrical grid, water, environment, public health, labor, and municipal finances, requiring a report within 24 months.

  In committee

• 2 September 2026

  Ohio HB 999: Prohibit property tax exemptions for data centers

  Introduced

• 21 July 2026

  Congress S. 5054: Data Center Tax Accountability and Disclosure Act of 2026

  In committee

• 21 July 2026

  Virginia SB 393: Virginia's Great Outdoors Act; established, creates data center land conservation tax.

  What it would do: Establishes Virginia's Great Outdoors Act and creates a data center land conservation tax of $3 per square foot on data center operators, with no less than $250 million in annual revenues distributed to state parks, trails, land conservation, historic preservation, and tribal programs beginning July 1, 2028.

  In committee

• 21 July 2026

  Virginia SB 417: Cloud Computing Cluster Infrastructure Grant Fund; reclaimed water usage, definitions.

  What it would do: Amends the Cloud Computing Cluster Infrastructure Grant Fund statute to define reclaimed water and water-dependent cooling, and requires qualified companies operating facilities with water-dependent cooling to use reclaimed water for increasing percentages of cooling processes, reaching 100 percent by July 1, 2031.

  Passed committee

• 21 July 2026

  Virginia SB 93: Data centers; taxes on banks that are tenants of a center.

  What it would do: Eliminates the sales and use tax exemption for computer equipment in data centers if any tenant is a bank as defined in § 58.1-1201, effective July 1, 2026. Requires banks' computer equipment in data centers to be assessed as tangible personal property for tax purposes.

  In committee

• 10 July 2026

  Pennsylvania HB 2359: An Act amending the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, in computer data center equipment incentive program, further providing for definitions, for application for certification, for eligibility requirements relating to sales and use tax refund program, for notification, for eligibility requirements relating to sales and use tax exemption program and for notification and records.

  What it would do: Amends Pennsylvania's computer data center equipment incentive program to require owners or operators to complete community protection plans identifying facility details, energy and water consumption, and public engagement efforts, and to certify no confidentiality agreements restrict public disclosure, with exemptions for facilities under 10 megawatts peak demand.

  Passed chamber

• 30 June 2026

  New Jersey A 5165: "End Data Center Tax Credits Act"; reduces tax credits available for Next New Jersey Program.*

  What it would do: Reduces tax credits available for the Next New Jersey Program by $250 million, reallocating those credits back to the New Jersey Aspire Program and Emerge Program.

  Passed committee

• 30 June 2026

  North Carolina HB 1213: Protect Taxpayers and Local Governments.

  Passed committee

• 26 June 2026

  Pennsylvania HB 2198: An Act amending the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, repealing provisions relating to Computer Data Center Equipment Incentive Program; and, in general provisions, providing for data centers.

  What it would do: Repeals the Computer Data Center Equipment Incentive Program under Article XXIX-D of the Tax Reform Code of 1971. Adds a provision prohibiting computer data centers not certified under Article XXIX-D before February 3, 2026 from receiving tax benefits under Articles XVIII-C, XIX-B, or the Keystone Opportunity Zone Act.

  Passed chamber

• 25 June 2026

  Pennsylvania HB 2650: An Act amending the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, in tax credit and tax benefit administration, further providing for definitions; in computer data center equipment incentive program, providing for certification prohibition; providing for Governor's Responsible Infrastructure Development certification and standards; and imposing duties.

  What it would do: Prohibits Department of Revenue from certifying new computer data centers under existing programs after the bill's effective date. Creates a new Governor's Responsible Infrastructure Development (GRID) certification program for data centers meeting strict energy, community benefit, environmental, and water quality standards, with sales and use tax exemptions for qualifying equipment through December 31, 2032.

  Passed chamber

• 17 June 2026

  Illinois SB 4203: Dceo-data centers

  What it would do: Requires qualified data center operators to execute community benefit agreements with host communities as a condition of receiving tax exemption certificates, mandating annual minimum payments of at least 10% of property taxes that would have been levied, with at least 50% used for homestead property owner tax relief.

  Introduced

• 3 June 2026

  Ohio HB 957: Prohibit new data center sales tax exemptions from being granted

  What it would do: Prohibits the tax credit authority from entering into new agreements granting sales tax exemptions on computer data center equipment after October 2026, while allowing existing agreements to continue under their current terms.

  In committee

• 27 May 2026

  Pennsylvania HB 2532: An Act amending the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, repealing provisions relating to computer data center equipment incentive program; in general provisions, providing for transfer of tax from certain sale of computer data equipment; and establishing a restricted account in the Motor License Fund.

  In committee

• 27 May 2026

  Pennsylvania HB 2539: An Act amending the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, in Computer Data Center Equipment Incentive Program, further providing for application for certification, for eligibility requirements relating to Sales and Use Tax Refund Program and for eligibility requirements relating to Sales and Use Tax Exemption Program.

  In committee

• 22 May 2026

  Illinois SB 3120: Dceo-data centers

  What it would do: Amends Illinois data center tax incentive law to require water stewardship strategies using closed-loop cooling or treated municipal wastewater, annual reporting on water strategies beginning July 1, 2027, and contractor compliance with responsible bidder requirements and project labor agreements.

  In committee

• 22 May 2026

  Illinois SB 3761: Data centers-various

  What it would do: Establishes a data center self-direct program allowing renewable energy charge reductions and requires data centers to submit disclosures to the Illinois Commerce Commission and annual water usage reports to the Department of Natural Resources, with fines up to $10,000 per violation for non-compliance.

  In committee

• 22 May 2026

  Illinois SB 3830: Data centers-various

  What it would do: Amends the Public Utilities Act to define load-serving entities, reliability backstop procurement, and electric distribution companies, and requires that curtailment obligations and reliability backstop procurement costs from hyperscale data centers be passed through to those facilities rather than other customers.

  In committee

• 21 May 2026

  New York A 10852: Enacts the stop subsidizing data centers act

  What it would do: Prohibits state economic development power allocations and certain financial assistance for data centers. Requires job creation clawback provisions, annual compliance certifications, and environmental review for data centers within ten miles of federally recognized Indian nation territory.

  In committee

• 18 May 2026

  Alaska SB 250: An Act relating to data centers; and relating to utility service for data centers.

  What it would do: Requires electric and gas utilities to enter into commission-approved contracts with data centers that directly assign infrastructure and variable costs to the data center, prohibits cost-shifting to other customers, and requires municipalities to negotiate community benefit agreements addressing waste heat recovery, broadband, and digital equity before data center construction.

  Passed chamber

• 17 May 2026

  Minnesota HF 5125: Data centers sales and use tax exemption repealed, and contingent reduction in special education aid appropriations repealed.

  What it would do: Repeals the sales and use tax exemption for enterprise information technology equipment and computer software used in qualified data centers, qualified refurbished data centers, and qualified large-scale data centers, effective July 1, 2026. Repeals the contingent $250,000,000 reduction in special education aid appropriations.

  In committee

• 15 May 2026

  Missouri HB 3390: Creates new provisions related to the construction of data centers

  What it would do: Prohibits hyperscale data centers on agricultural land and within ten miles of agricultural or conservation areas or five miles of water after August 28, 2026. Requires local public hearings, state siting board approval, noise controls, 500-foot setbacks, and major industrial water user permits for facilities using over 2.4 million gallons daily.

  In committee