Data center tax incentives by state: all 50 states
Source: DC Hub state tax-incentive registry (/api/v1/tax-incentives), compiled from the state agency, statute or official release named in each row. Data as of . 9 of 50 rows were re-checked against that primary source on the date shown in the row; the others have not been re-verified since they were compiled.
| State | Incentive | Type | Source |
|---|---|---|---|
| Alabama | Up to 30 years of tax abatements for data centers investing $400M+ and creating 20+ jobs at $40K average compensation. | Sales/use tax, Property tax | Alabama Dept. of Revenue |
| Alaska | No specific data center tax incentive. However, Alaska has no state-wide sales tax — a natural advantage. | No targeted incentive | No source recorded |
| Arizona | PAUSED to new applicants 2026-07-01 through 2029-06-30. The Computer Data Center Program (TPT/Use tax exemption) is closed to new applications; existing certifications continue. | Sales/use tax (paused to new applicants 2026-07-01) | Arizona Commerce Authority / 2026 legislative moratorium (verified 2026-09-18) |
| Arkansas | Incentives under Act 819 (2023) and Act 548 (2025) for qualifying data center projects. | Sales/use tax | No source recorded |
| California | No data center tax incentive. High energy costs and tax burden make CA one of the most expensive states. | No targeted incentive | No source recorded |
| Colorado | No known data center tax incentive legislation currently in place. | No targeted incentive | No source recorded |
| Connecticut | Data Center Tax Incentive Program administered by the DECD. | Sales/use tax | CT DECD |
| Delaware | No specific incentive, but no property or sales tax — a significant natural advantage. | No targeted incentive | No source recorded |
| Florida | Sales/use tax exemption. As of Aug 2025, limited to 100 MW+ IT load facilities (hyperscale focus). | Sales/use tax | Florida Dept. of Revenue |
| Georgia | Complete sales tax exemption on high-tech equipment. $296M in tax breaks expected by 2025. | Sales/use tax | Georgia Dept. of Econ Dev |
| Hawaii | No data center tax incentive. High energy costs and geographic isolation. | No targeted incentive | No source recorded |
| Idaho | State-level sales tax exemption for qualifying data center developments. | Sales/use tax | Idaho Commerce |
| Illinois | PAUSED to new applicants since 2026-07-01. Two-year suspension of the Data Center Investment Program; existing agreements grandfathered. | Sales/use tax, Income tax, Electricity (paused to new applicants 2026-07-01) | Illinois DCEO / Office of the Governor (verified 2026-09-18) |
| Indiana | 100% sales tax exemption on power, plant, and equipment. Up to 50 years for $750M+. | Sales/use tax, Property tax, Electricity | Indiana EDC |
| Iowa | 100% sales/use tax abatement starting at $1M. No property tax on equipment. $151M total. | Sales/use tax, Property tax | Iowa Dept. of Revenue |
| Kansas | 20-year state and local sales/use tax exemption under SB 98. No property tax on new equipment. | Sales/use tax, Property tax | Kansas Dept. of Commerce |
| Kentucky | Sales/use tax exemption with thresholds based on county population. Expanded under HB 775 (2025). | Sales/use tax | Kentucky Dept. of Revenue |
| Louisiana | Sales/use tax rebate on equipment and construction. Up to 30 years total. | Sales/use tax | Louisiana Econ Dev |
| Maine | Sales tax refund/exemption for 20,000+ sq ft facilities primarily housing servers. | Sales/use tax | No source recorded |
| Maryland | Data Center Maryland: 10-year exemption at $2M–$5M; up to 20 years for $250M+. | Sales/use tax | Maryland Dept. of Commerce |
| Massachusetts | 20-year exemption for 100K+ sq ft. Covers servers, networking, software, electricity, construction. | Sales/use tax, Electricity | Massachusetts OED |
| Michigan | Sales/use tax exemption through 2050. Requires clean energy & green building. | Sales/use tax | Michigan EDC |
| Minnesota | ELECTRICITY EXEMPTION REPEALED after 2025-06-30 (H.F. 9). Equipment/software exemption remains and its term extended 20 to 35 years. Permanent property tax exemption on equipment unchanged. | Sales/use tax, Property tax (partially repealed 2025-07-01) | Minnesota Dept. of Revenue (H.F. 9, 2025 1st Spec. Sess.) (verified 2026-09-18) |
| Mississippi | Sales + income + franchise tax exemptions. $20M min, 20 jobs. | Sales/use tax, Income tax | Mississippi Dev Auth |
| Missouri | Dual-track: new ($25M) and existing ($5M). Itemizes by recipient. | Sales/use tax | Missouri DED |
| Montana | Property tax reduction (Class 17) for 25K+ sq ft / $50M. No state sales tax. | Property tax | Montana Dept. of Revenue |
| Nebraska | CLOSED to new applicants 2026-07-20 by executive order. ImagiNE Nebraska Act incentives rescinded for new data centers; existing projects unaffected. | Sales/use tax, Property tax (paused to new applicants 2026-07-20) | Office of Gov. Jim Pillen, executive order (verified 2026-09-18) |
| Nevada | Sales tax as low as 2%. Up to 75% property tax abatement. No income tax. $140M in exemptions. | Sales/use tax, Property tax | NV GOED |
| New Hampshire | No specific incentive but no state sales tax — natural cost advantage. | No targeted incentive | No source recorded |
| New Jersey | REPEALED Aug 2026. The End Data Center Tax Credits Act eliminated the remaining $250M of Next New Jersey AI/DC credits. Credits already awarded stand; no new awards. | Sales/use tax, Income tax (repealed 2026-08-01) | New Jersey Legislature (A5165/S4390) (verified 2026-09-18) |
| New Mexico | No known data center tax incentive legislation. | No targeted incentive | No source recorded |
| New York | Sales tax exemption for equipment used by Internet data centers. | Sales/use tax | NY Tax & Finance |
| North Carolina | ELECTRICITY EXEMPTION REPEALED under the 2026 budget. Equipment and capital-investment exemptions remain. $75M+ within 5 years threshold unchanged. | Sales/use tax (partially repealed 2026-07-01) | North Carolina 2026 budget / NC Dept. of Revenue (verified 2026-09-18) |
| North Dakota | Sales/use tax exemption for IT equipment in 15K+ sq ft facilities. | Sales/use tax | ND Tax Dept. |
| Ohio | PAUSED to new applicants since 2026-05-27. The ORC 122.175 sales/use tax exemption ($100M+ capex / $1.5M+ payroll) is closed to new requests; already-executed agreements continue. Ohio's absence of personal property tax is unaffected and remains a structural benefit. | Sales/use tax, Property tax (paused to new applicants 2026-05-27) | Ohio Dept. of Development / Ohio Revised Code 122.175 (verified 2026-09-21) |
| Oklahoma | Sales tax exemption for computer services with majority out-of-state revenue remains intact. HB 2992 (eff. 2026-07-01) shifts grid costs onto data center operators. | Sales/use tax (restricted 2026-07-01) | Oklahoma Legislature (HB 2992) (verified 2026-09-18) |
| Oregon | No sales tax. Enterprise Zone abatements, Strategic Investment Program, Oregon Investment Advantage. | Property tax, Income tax | Business Oregon |
| Pennsylvania | DC Equipment Program + Keystone Opportunity Zones (KOZ) — near-complete tax elimination. | Sales/use tax, Property tax, Income tax | PA Dept. of Revenue |
| Rhode Island | No known data center tax incentive legislation. | No targeted incentive | No source recorded |
| South Carolina | Sales/use tax exemption on equipment, hardware, and electricity. $50M, 25 jobs. | Sales/use tax, Electricity | SC Dept. of Commerce |
| South Dakota | No specific incentive but no state income tax. General programs may apply. | No targeted incentive | No source recorded |
| Tennessee | Sales/use tax exemption + reduced 1.5% electricity rate. FastTrack grants + credits. | Sales/use tax, Electricity | Tennessee DECD |
| Texas | Over $1B in subsidies for 2025 — largest nationally. Equipment + electricity. No income tax. | Sales/use tax, Electricity | Texas Comptroller |
| Utah | Sales/use tax exemption for 150K+ sq ft. EDTIF/Rural EDTIF + infrastructure credits. | Sales/use tax | Utah GOE |
| Vermont | No known data center tax incentive legislation. | No targeted incentive | No source recorded |
| Virginia | Largest US data-center market by capacity. $732M subsidies (2024). Sales tax exemption. | Sales/use tax | Virginia EDP |
| Washington | NARROWED 2026-07-01 (SB 6231). Exemption removed for replacement/refurbishment equipment and labor; new construction and initial install may still qualify. Urban-county certificates close 2028-07-01. | Sales/use tax (partially repealed 2026-07-01) | Washington Dept. of Revenue (SB 6231) (verified 2026-09-18) |
| West Virginia | New 2025: sales/use tax exemption + property tax at ~5% salvage value. | Sales/use tax, Property tax | WV Dept. of Econ Dev |
| Wisconsin | Sales/use tax exemption for equipment/materials. Thresholds vary by county pop. | Sales/use tax | WEDC |
| Wyoming | Two-tier: equipment at $5M, full at $50M. No state income tax. | Sales/use tax | Wyoming Excise Tax Div |