Tricks and Traps of Data Center State Tax Incentives

This special report provides a comprehensive overview of state tax incentives available to data centers, covering sales tax, income tax, and property tax exemptions across more than 30 states. The authors detail qualifying criteria — including investment thresholds, job creation requirements, and preapproval processes — and provide a detailed state-by-state comparison chart. For advocates, this resource is valuable for understanding the scope and structure of tax breaks that data center developers pursue, including sunset provisions and clawback mechanisms that communities can leverage.