Wisconsin bill LRB 6903/1.
would repeal the sales tax incentive established by Wisconsin Act 19 in 2023.
Key Details
Purpose
The bill repeals financial tax incentives for large data center projects. [1]
Background
The tax exemptions being targeted were originally established under 2023 Wisconsin Act 19, which provided sales and use tax breaks for property, equipment, and materials used to build or operate qualified data centers. [1, 2]
Sponsors & Proponents
The proposal was introduced by Senator Andre Jacque, Representatives Lindee Brill and Shae Sortwell, and Assemblyman Dean Kaufert. It has also drawn support from local officials and candidates (such as State Senate candidate Erik Severson), who argue that data center zoning and construction should remain under local control and that municipalities should benefit from full local tax bases rather than tax exemptions for tech companies. [1, 2]
Sen. Jacque stated in his press release, “Recent estimates indicate that data center developers could realize over $1.5 billion in tax savings as a result during the construction of current data center projects, and an additional $369 million annually once completed, according to the Legislative Fiscal Bureau.”
Rep. Sortwell, meanwhile, noted, “I have openly opposed this exemption since it was signed into law back in 2023. This bill is a straightforward step toward greater accountability and fairness in our tax code.”
