# Data center tax incentives by state (2026): exemptions, credits, abatements, grants

By Spezia. Published November 13, 2026. Updated November 13, 2026. Data as of November 13, 2026.
Canonical page: https://spezia.ai/blog/data-center-incentives-by-state

## The short answer

As of November 13, 2026, 6 states have an open sales tax exemption for data center equipment that Spezia matched word for word to its official page: Indiana, Kansas, Pennsylvania, Texas, Virginia and Wisconsin. Arizona, Illinois, North Carolina and Ohio stopped taking new claims on a data center sales tax break in 2026, by a pause or a repeal, and Georgia has one to confirm first. 14 more states have an incentive law on record that is not yet matched to an official page. Research, not tax advice.

- 6 state sales tax exemptions for data center equipment are open and matched to their official pages, in Indiana, Kansas, Pennsylvania, Texas, Virginia and Wisconsin.
- 4 states stopped new claims on a data center sales tax break in 2026: Arizona, Illinois, North Carolina and Ohio. Georgia has one to confirm first.
- Of the 10 states with the most planned capacity, 2 have an open exemption listed: Texas and Pennsylvania.
- Spezia's laws tracker holds 400 state measures on data center tax breaks in 48 states. 98 would cut a break back, and 30 of those are still moving.
- 94 of 1,047 tracked project records name an abatement or exemption in their own sources, 24 of them in Texas.

## Which states have data center tax incentives?

As of November 13, 2026, **6 states** have an open sales and use tax exemption for data center equipment that Spezia matched to its official page. It covers the equipment inside the building, such as servers and, in several states, cooling and power gear, so it reaches much of what a data center buys.

- **6**: states with an open data center equipment exemption
- **4**: states that paused or repealed one in 2026
- **1**: state where a pending change needs confirming
- **14**: states with an incentive law on record, not yet listed

| State | Status | Published terms | Source |
| --- | --- | --- | --- |
| [Arizona](https://spezia.ai/data-centers/arizona) | Closed | The state, county and city sales and use tax otherwise due on qualifying equipment, for up to 10 years after certification. | [Official page](https://www.azcommerce.com/incentives/computer-data-center-program/) |
| [Georgia](https://spezia.ai/data-centers/georgia) | Confirm first | The sales and use tax otherwise due on qualifying equipment, through December 31, 2031. | [Official page](https://dor.georgia.gov/document/document/rule-560-12-2-117-high-technology-data-center-equipment/download) |
| [Illinois](https://spezia.ai/data-centers/illinois) | Closed | Tax exemptions in five-year certificates; a credit of 20% of construction wages in underserved areas. | [Official page](https://dceo.illinois.gov/expandrelocate/incentives/datacenters.html) |
| [Indiana](https://spezia.ai/data-centers/indiana) | Open | The sales and use tax otherwise due on qualifying equipment and energy, for up to 25 years, or up to 50 years for investments above $750 million. | [Official page](https://iedc.in.gov/indiana-advantages/investments/data-center-sales-tax-exemption/overview) |
| [Kansas](https://spezia.ai/data-centers/kansas) | Open | State and local sales tax otherwise due on eligible data center costs, for 20 years. | [Official page](https://www.kansascommerce.gov/program/business-incentives-and-services/sb-98-data-center-sales-tax-exemption/) |
| [North Carolina](https://spezia.ai/data-centers/north-carolina) | Closed | Repealed for electricity effective July 7, 2026; other items at certified datacenters keep their exemption. | [Official page](https://www.ncdor.gov/taxes-forms/sales-and-use-tax/other-sales-and-use-tax-resources/important-notices-issued-sales-and-use-tax-division/important-notice-repeal-exemptions-electricity-used-datacenters) |
| [Ohio](https://spezia.ai/data-centers/ohio) | Closed | The sales and use tax otherwise due on qualifying equipment and construction materials. | [Official page](https://codes.ohio.gov/ohio-revised-code/section-122.175) |
| [Pennsylvania](https://spezia.ai/data-centers/pennsylvania) | Open | 6% of qualifying equipment purchases (the state rate; local tax still due). | [Official page](https://www.pa.gov/content/dam/copapwp-pagov/en/revenue/documents/incentivescreditsprograms/computerdatacenterequipprog/documents/computer_data_center_equip_exemption_program_faq.pdf) |
| [Texas](https://spezia.ai/data-centers/texas) | Open | 6.25% of qualifying purchases (the state rate; local tax still due), for 10 years at $200 million of investment or 15 years at $250 million. | [Official page](https://comptroller.texas.gov/taxes/data-centers/) |
| [Virginia](https://spezia.ai/data-centers/virginia) | Open | The sales and use tax otherwise due on qualifying equipment, through June 30, 2035, or later for operators that commit to $35 billion or $100 billion. | [Official page](https://www.vedp.org/incentive/data-center-retail-sales-use-tax-exemption) |
| [Wisconsin](https://spezia.ai/data-centers/wisconsin) | Open | The sales and use tax otherwise due on eligible property, once certified. | [Official page](https://www.revenue.wi.gov/Pages/FAQS/ExemptionforQualifiedDataCenter.aspx) |

Every row is the state's own published term. Whether a project qualifies depends on its investment, jobs and agreement with the state, which the official page sets out.

## Data center incentives, state by state

Each state below has at least one program in Spezia's catalog. The exemption a data center claims comes first, then the programs its contractors and suppliers claim.

### Arizona data center tax incentives

- **Arizona Computer Data Center Program** (Closed). The state, county and city sales and use tax otherwise due on qualifying equipment, for up to 10 years after certification. Who qualifies: Owners, operators and colocation tenants of a certified data center investing at least $50 million in Maricopa or Pima County, or $25 million elsewhere, within five years. The 2026 state budget (HB 4168) bars the Arizona Commerce Authority from accepting new applications or granting relief to new computer data centers from July 1, 2026 through June 30, 2029. Projects already in the program are not affected. [Official page](https://www.azcommerce.com/incentives/computer-data-center-program/), the page states no date.
- **Arizona Job Training grant** (Open). Up to $1,500,000 per grant; the company matches at least 25% (new employees) or 50% (current employees) of the training cost. Who qualifies: Employers with a business location in Arizona that pay into the Job Training Fund, and groups of employers or apprenticeship committees. [Official page](https://www.azcommerce.com/media/31849/JobTraining1.pdf), the page states no date.

Spezia tracks 5 data center projects in Arizona with 7.0 GW planned. See every project on the [Arizona data center tracker](https://spezia.ai/data-centers/arizona).

### Georgia data center tax incentives

- **Georgia high-technology data center equipment exemption** (Confirm first). The sales and use tax otherwise due on qualifying equipment, through December 31, 2031. Who qualifies: Data center owners and their customers on contracts of at least 36 months that meet the investment minimum for their county, which the Department of Revenue's rule sets by county population and changed on May 9, 2022. A 2026 bill (Senate Bill 410) would stop new certificates; whether it passed is not confirmed here. Ask the Department of Revenue before counting on it. [Official page](https://dor.georgia.gov/document/document/rule-560-12-2-117-high-technology-data-center-equipment/download), the page states no date.
- **Georgia Job Tax Credit** (Open). Per new job each year: $3,500 in Tier 1 counties, $2,500 in Tier 2, $1,250 in Tier 3 and $750 in Tier 4. Who qualifies: Businesses in eligible industries, including manufacturing and warehousing and distribution, that create the minimum number of new jobs in a county. [Official page](https://dor.georgia.gov/document/document/2025-it-ca-job-tax-credit-form-itca/download), the page states no date.
- **Georgia Power custom equipment upgrade rebates** (Open). Custom equipment upgrades: up to 50% of project costs. Who qualifies: Georgia Power business customers, and the contractors who carry out their upgrades. [Official page](https://www.georgiapower.com/business/save-money-and-energy/commercial-rebates-and-incentives.html), the page states no date.

Spezia tracks 8 data center projects in Georgia with 8.6 GW planned. 6 tracked projects name an abatement or exemption in their own sources. See every project on the [Georgia data center tracker](https://spezia.ai/data-centers/georgia).

### Illinois data center tax incentives

- **Illinois data center investment program** (Closed). Tax exemptions in five-year certificates; a credit of 20% of construction wages in underserved areas. Who qualifies: Data centers investing at least $250 million over 60 months with at least 20 new jobs. The department stopped processing applications on July 1, 2026, at the governor's direction. [Official page](https://dceo.illinois.gov/expandrelocate/incentives/datacenters.html), the page states no date.

Spezia tracks 8 data center projects in Illinois with 5.2 GW planned. 2 tracked projects name an abatement or exemption in their own sources. See every project on the [Illinois data center tracker](https://spezia.ai/data-centers/illinois).

### Indiana data center tax incentives

- **Indiana data center sales tax exemption** (Open). The sales and use tax otherwise due on qualifying equipment and energy, for up to 25 years, or up to 50 years for investments above $750 million. Who qualifies: Operators of a qualified data center approved by the IEDC. [Official page](https://iedc.in.gov/indiana-advantages/investments/data-center-sales-tax-exemption/overview), the page states no date.

Spezia tracks 6 data center projects in Indiana with 6.3 GW planned. 3 tracked projects name an abatement or exemption in their own sources. See every project on the [Indiana data center tracker](https://spezia.ai/data-centers/indiana).

### Kansas data center tax incentives

- **Kansas data center sales tax exemption (SB 98)** (Open). State and local sales tax otherwise due on eligible data center costs, for 20 years. Who qualifies: Data centers investing at least $250 million within five years of starting operations, with 20 new jobs, a ten-year electricity agreement with the local utility, a water plan and a security review. [Official page](https://www.kansascommerce.gov/program/business-incentives-and-services/sb-98-data-center-sales-tax-exemption/), the page states no date.

Spezia tracks 1 data center project in Kansas with 0.4 GW planned. See every project on the [Kansas data center tracker](https://spezia.ai/data-centers/kansas).

### North Carolina data center tax incentives

- **North Carolina datacenter electricity exemption** (Closed). Repealed for electricity effective July 7, 2026; other items at certified datacenters keep their exemption. Who qualifies: Qualifying and eligible internet datacenters. The Department of Revenue's notice of July 23, 2026 says the repeal does not change the exemption for other items located and used at certified datacenters. [Official page](https://www.ncdor.gov/taxes-forms/sales-and-use-tax/other-sales-and-use-tax-resources/important-notices-issued-sales-and-use-tax-division/important-notice-repeal-exemptions-electricity-used-datacenters), page dated July 23, 2026.

Spezia tracks 4 data center projects in North Carolina with 1.5 GW planned. See every project on the [North Carolina data center tracker](https://spezia.ai/data-centers/north-carolina).

### Ohio data center tax incentives

- **Ohio computer data center sales tax exemption** (Closed). The sales and use tax otherwise due on qualifying equipment and construction materials. Who qualifies: Data center businesses investing at least $100 million at a site within the program's period, by agreement with the Tax Credit Authority. On May 27, 2026 the governor directed the Tax Credit Authority to stop considering new data center exemption requests while a legislative committee studies their cost. Exemptions already approved continue. Confirm with the Department of Development. [Official page](https://codes.ohio.gov/ohio-revised-code/section-122.175), page dated September 30, 2025.
- **Ohio TechCred training reimbursement** (Closed). Up to $1,000 per person per credential; up to $30,000 per application. Who qualifies: Ohio employers with Ohio-resident W-2 employees, of any size and industry. The October 2026 window closed October 30, 2026. [Official page](https://techcred.ohio.gov/), the page states no date.

Spezia tracks 7 data center projects in Ohio with 21.0 GW planned. 3 tracked projects name an abatement or exemption in their own sources. See every project on the [Ohio data center tracker](https://spezia.ai/data-centers/ohio).

### Pennsylvania data center tax incentives

- **Pennsylvania computer data center equipment exemption** (Open). 6% of qualifying equipment purchases (the state rate; local tax still due). Who qualifies: Owners, operators and qualified tenants of a data center certified by the Department of Revenue. [Official page](https://www.pa.gov/content/dam/copapwp-pagov/en/revenue/documents/incentivescreditsprograms/computerdatacenterequipprog/documents/computer_data_center_equip_exemption_program_faq.pdf), page dated December 17, 2024.

Spezia tracks 8 data center projects in Pennsylvania with 12.3 GW planned. 1 tracked project names an abatement or exemption in its own sources. See every project on the [Pennsylvania data center tracker](https://spezia.ai/data-centers/pennsylvania).

### Texas data center tax incentives

- **Texas city and county tax abatements (Chapter 312)** (Open). All or part of the added value, for no more than 10 years, by agreement with each city or county. Who qualifies: A business adding a plant, warehouse, yard or data center in a city or county that has adopted abatement guidelines. School districts cannot give these. [Official page](https://comptroller.texas.gov/economy/development/prop-tax/ch312/about-abatements.php), the page states no date.
- **Texas data center sales tax exemption** (Open). 6.25% of qualifying purchases (the state rate; local tax still due), for 10 years at $200 million of investment or 15 years at $250 million. Who qualifies: Owners, operators and occupants of a Texas data center of at least 100,000 square feet that commit to 20 qualifying jobs and at least $200 million of investment over five years. Not for data centers with a Chapter 313 value limitation. [Official page](https://comptroller.texas.gov/taxes/data-centers/), the page states no date.
- **Oncor Commercial Standard Offer Program** (Open). Incentives per measured or deemed savings under the program manual; projects need at least $500 of deemed savings or $10,000 of measured savings. Who qualifies: Energy service companies, contractors and other providers installing approved measures at non-residential sites in Oncor's area, and large customers sponsoring their own projects. [Official page](https://eepm.oncor.com/staging/spportal/basic-commercial-standard.aspx), the page states no date.
- **Texas JETI school tax value limitation** (Open). School district maintenance and operations taxable value of zero during construction, then limited for the agreement's term; jobs and investment minimums depend on county population. Who qualifies: Manufacturing projects and dispatchable electric generation facilities that meet the county's job and investment minimums. Data centers are not an eligible activity. [Official page](https://comptroller.texas.gov/economy/development/prop-tax/jeti/faq.php), the page states no date.
- **Texas Skills Development Fund training grant** (Open). Up to $500,000 per business (more for a group of businesses); the average cost per trainee is $2,400. Who qualifies: Texas businesses with full-time W-2 employees, applying with a public college, TEEX or a workforce board. [Official page](https://www.twc.texas.gov/programs/skills-development-fund), the page states no date.

Spezia tracks 41 data center projects in Texas with 57.0 GW planned. 24 tracked projects name an abatement or exemption in their own sources. See every project on the [Texas data center tracker](https://spezia.ai/data-centers/texas).

### Virginia data center tax incentives

- **Virginia data center sales and use tax exemption** (Open). The sales and use tax otherwise due on qualifying equipment, through June 30, 2035, or later for operators that commit to $35 billion or $100 billion. Who qualifies: Data center operators and their tenants that sign an agreement with VEDP and meet $150 million of new investment and 50 new jobs at 150% of the local average wage, or $70 million and 10 jobs in a distressed locality. [Official page](https://www.vedp.org/incentive/data-center-retail-sales-use-tax-exemption), the page states no date.
- **Virginia Commonwealth's Development Opportunity Fund** (Open). Negotiated; minimums of 50 jobs and $5 million, or 25 jobs and $100 million (lower in distressed localities); local match dollar for dollar. Who qualifies: Companies choosing between Virginia and another state that meet job and investment minimums, with a local match. [Official page](https://www.vedp.org/incentive/commonwealths-development-opportunity-fund-cof), the page states no date.
- **Virginia Jobs Investment Program** (Open). A budget per net new full-time job or retrained worker, set from an assessment of the company's recruiting and training; paid over about 36 months. Who qualifies: Companies creating new jobs or retraining workers in Virginia as part of new or expanding operations. Discretionary. [Official page](https://www.vedp.org/incentive/virginia-jobs-investment-program-vjip), the page states no date.

Spezia tracks 14 data center projects in Virginia with 3.6 GW planned. 1 tracked project names an abatement or exemption in its own sources. See every project on the [Virginia data center tracker](https://spezia.ai/data-centers/virginia).

### Wisconsin data center tax incentives

- **Wisconsin qualified data center exemption** (Open). The sales and use tax otherwise due on eligible property, once certified. Who qualifies: Data centers that meet the minimum investments for certification. [Official page](https://www.revenue.wi.gov/Pages/FAQS/ExemptionforQualifiedDataCenter.aspx), page dated June 25, 2026.

Spezia tracks 5 data center projects in Wisconsin with 1.7 GW planned. 1 tracked project names an abatement or exemption in its own sources. See every project on the [Wisconsin data center tracker](https://spezia.ai/data-centers/wisconsin).

## Which states could not be verified and are not listed?

14 states have a data center tax incentive that Spezia's laws tracker records as adopted or in force, but no program there has yet been matched word for word to an official page. Until it is, Spezia does not list it or count it:

Arkansas, Florida, Kentucky, Louisiana, Massachusetts, Maryland, Michigan, Minnesota, North Dakota, Nebraska, South Carolina, Tennessee, West Virginia and Wyoming.

A missing state is not proof that no incentive exists. It means the terms have not been checked against the agency's own page yet. Ask the state's revenue or economic development agency before counting on one.

## Do the biggest data center states offer incentives?

Not all of them. Of the 10 states with the most planned capacity in Spezia's tracker, 2 have an open exemption listed, 1 paused new claims in 2026 and 1 has one to confirm first. Not yet listed means the state's legislature has acted on a data center tax break, but no program there is matched to an official page yet.

| State | Planned capacity | Equipment exemption |
| --- | ---: | --- |
| [Texas](https://spezia.ai/data-centers/texas) | 57.0 GW | Open |
| [Utah](https://spezia.ai/data-centers/utah) | 31.6 GW | Not yet listed |
| [Wyoming](https://spezia.ai/data-centers/wyoming) | 27.6 GW | Not yet listed |
| [Ohio](https://spezia.ai/data-centers/ohio) | 21.0 GW | Closed |
| [West Virginia](https://spezia.ai/data-centers/west-virginia) | 16.3 GW | Not yet listed |
| [Pennsylvania](https://spezia.ai/data-centers/pennsylvania) | 12.3 GW | Open |
| [New Mexico](https://spezia.ai/data-centers/new-mexico) | 11.0 GW | Not yet listed |
| [Louisiana](https://spezia.ai/data-centers/louisiana) | 9.3 GW | Not yet listed |
| [Montana](https://spezia.ai/data-centers/montana) | 8.7 GW | Not yet listed |
| [Georgia](https://spezia.ai/data-centers/georgia) | 8.6 GW | Confirm first |

Planned capacity is the full build-out of each project as of November 9, 2026. Tax breaks are one factor among several: land, power and the wait for a grid connection also decide where projects go. [Data center capacity by state](https://spezia.ai/blog/data-center-capacity-by-state) has the full list.

## Are states taking data center tax breaks back?

Some are. 4 states stopped new claims on a data center sales tax break in 2026:

- **Arizona: new applications paused from July 1, 2026 to June 30, 2029.** The 2026 state budget (HB 4168) bars the Arizona Commerce Authority from accepting new applications or granting relief to new computer data centers from July 1, 2026 through June 30, 2029. Projects already in the program are not affected.
- **Illinois: applications stopped July 1, 2026.** The department stopped processing applications on July 1, 2026, at the governor's direction.
- **North Carolina: electricity exemption repealed July 7, 2026.** The Department of Revenue's notice of July 23, 2026 says the repeal does not change the exemption for other items located and used at certified datacenters.
- **Ohio: new requests paused since May 27, 2026.** On May 27, 2026 the governor directed the Tax Credit Authority to stop considering new data center exemption requests while a legislative committee studies their cost. Exemptions already approved continue. Confirm with the Department of Development.

Spezia's laws tracker holds **400 state measures** on data center tax breaks in 48 states. Most grant or extend a break. **98** would cut one back: a repeal, an exclusion, a pause or a cap.

**State measures on data center tax breaks**

| | Value | Note |
| --- | ---: | --- |
| Grant or extend, in force or adopted | 31 |  |
| Grant or extend, still moving | 46 |  |
| Grant or extend, failed or ended | 44 |  |
| Cut back, in force or adopted | 8 |  |
| Cut back, still moving | 30 |  |
| Cut back, failed or ended | 21 |  |

*Measures in Spezia's laws tracker, November 13, 2026. The other 220 have no status confirmed by a quote or record.*

Measures to cut a break back are in force or moving in 16 states: Alabama, Delaware, Georgia, Maine, Maryland, Michigan, Nevada, New Jersey, New Mexico, North Carolina, Ohio, Pennsylvania, South Carolina, Texas, Utah and Washington. A bill that is moving can still fail. Follow each one, with its official text and status, in [data center laws and local rules](https://spezia.ai/tools/legislation), and read [the data center laws passed in 2026](https://spezia.ai/blog/data-center-legislation-2026) and [the moratoriums](https://spezia.ai/blog/data-center-moratoriums-2026).

## How many projects carry an abatement or exemption?

94 of the 1,047 project records in Spezia's latest research run name an abatement, an exemption or another public incentive in their own sources. It is a floor, not a total: an agreement often comes after a project is first reported, and not every one is reported.

- Texas: 24 projects
- Mississippi: 8 projects
- Georgia: 6 projects
- Alabama: 5 projects
- Missouri: 5 projects

## What can contractors and suppliers claim?

The equipment exemptions belong to the data center's owner, operator or tenant. The businesses that build and supply it have their own programs: training grants, job credits and utility rebates.

| Program | Status | Published terms |
| --- | --- | --- |
| Arizona Job Training grant | Open | Up to $1,500,000 per grant; the company matches at least 25% (new employees) or 50% (current employees) of the training cost. |
| Georgia Job Tax Credit | Open | Per new job each year: $3,500 in Tier 1 counties, $2,500 in Tier 2, $1,250 in Tier 3 and $750 in Tier 4. |
| Georgia Power custom equipment upgrade rebates | Open | Custom equipment upgrades: up to 50% of project costs. |
| Ohio TechCred training reimbursement | Closed | Up to $1,000 per person per credential; up to $30,000 per application. |
| Oncor Commercial Standard Offer Program | Open | Incentives per measured or deemed savings under the program manual; projects need at least $500 of deemed savings or $10,000 of measured savings. |
| Texas JETI school tax value limitation | Open | School district maintenance and operations taxable value of zero during construction, then limited for the agreement's term; jobs and investment minimums depend on county population. |
| Texas Skills Development Fund training grant | Open | Up to $500,000 per business (more for a group of businesses); the average cost per trainee is $2,400. |
| Virginia Commonwealth's Development Opportunity Fund | Open | Negotiated; minimums of 50 jobs and $5 million, or 25 jobs and $100 million (lower in distressed localities); local match dollar for dollar. |
| Virginia Jobs Investment Program | Open | A budget per net new full-time job or retrained worker, set from an assessment of the company's recruiting and training; paid over about 36 months. |

## Federal incentives open to the build-out

15 of 18 federal programs in the catalog are open or ending. Deductions mostly move tax from one year to another, and loans are loans: neither is money a business keeps outright.

| Program | Status | Published terms |
| --- | --- | --- |
| 100% bonus depreciation | Open | 100% of the cost of qualifying property acquired after January 19, 2025, deducted in the first year. |
| Qualified production property expensing (factories) | Open | Up to 100% of the depreciable basis of qualified production property, by election. |
| Section 179 expensing | Open | Up to $2,500,000 a year (tax years beginning in 2025), reduced dollar for dollar once purchases pass $4,000,000. |
| Research credit, with the small-business payroll option | Open | Under the simplified method, 14% of qualified research spending above half the average of the prior three years. Up to $500,000 a year can go against payroll tax for a qualified small business. |
| Deduct U.S. research spending in the year it is spent (174A) | Open | Domestic research or experimental spending deducted in the year paid, for tax years beginning after December 31, 2024. |
| Advanced manufacturing production credit (45X): batteries and inverters | Open | $35 per kWh of battery cell capacity and $10 per kWh of battery module capacity; inverters by type per watt. Steps down to 75% in 2030, 50% in 2031, 25% in 2032, then ends. |
| Clean electricity investment credit (48E): on-site storage and clean generation | Open | 6% of the qualified investment, or up to 30% when prevailing wage and apprenticeship rules are met, plus 10 points each for domestic content and for an energy community. |
| Advanced energy project credit (48C) | Closed | Up to 30% of qualified investment with prevailing wage and apprenticeship. About $10 billion was allocated in two rounds (March 2024 and January 2025). |
| Energy efficient commercial buildings deduction (179D) | Ending | For 2026, $0.59 to $1.19 per square foot, or $2.97 to $5.94 per square foot when prevailing wage and apprenticeship rules are met. |
| SBA 504 loan for buildings and heavy equipment | Open | Up to $5.5 million per loan, with 10, 20 and 25-year terms. |
| SBA 7(a) loan | Open | Up to $5 million per loan. |
| SBA surety bond guarantee | Open | Contracts up to $9 million (non-federal) or $14 million (federal); a fee of 0.6% of the contract price on performance and payment bonds, none on bid bonds. |
| Opportunity Zone investment | Open | Tax on eligible gains deferred when invested in a Qualified Opportunity Fund; further benefits depend on the holding period. |
| New Markets Tax Credit | Closed | 39% of the original investment, claimed over seven years. |
| DOE Energy Dominance Financing (loan guarantees) | Open | Loan guarantees sized to the project, under Section 1706. |
| DOE grid supply chain grants (SCALED) | Open | $237 million in total, by competition. |
| USDA Affordable Rural Cooperative energy program | Open | About $175 million in total; awards from $100,000 to $20 million. |
| Work Opportunity Tax Credit | Closed | A credit per qualifying hire, certified by the state workforce agency. |

## What should you do with this?

- **Developers and site teams.** Price the exemption into each state's land and power math, and read the deadline. Virginia's runs through June 30, 2035, by agreement with the state.
- **Equipment makers and distributors.** An exemption lowers the buyer's cost of your gear in that state. Use it in the sale, and check the buyer's certificate.
- **Contractors.** Ask for the training money in your own state before you hire for a data center job.
- **Lenders and investors.** Treat a pending repeal as a risk to the model, and confirm the project's agreement on paper.

See every program ranked for your business, trade and states, with what each may be worth and its official page. [Find my money](https://spezia.ai/tools/found-money)

## How this was made

Programs come from Spezia's found money catalog: 39 federal, state, local and utility programs open to the businesses that build, supply and finance data centers. Each one was read on its official page, and the quoted terms were matched word for word again on November 13, 2026; 39 of 39 matched. Terms are the programs' own, never an estimate. State measures come from Spezia's laws tracker, counted by state and status; a measure whose title or summary repeals, excludes, pauses, prohibits or reduces a break counts as a cut. Projects are counted, never named. Research, not tax or legal advice.

## Frequently asked questions

### Which states have a data center sales tax exemption?

As of November 13, 2026, Spezia lists an open exemption matched to its official page in Indiana, Kansas, Pennsylvania, Texas, Virginia and Wisconsin. Arizona, Illinois, North Carolina and Ohio stopped new claims on one in 2026, and Georgia has one to confirm first.

### Does Texas have a data center tax exemption?

Yes, a state sales tax exemption: 6.25% of qualifying purchases (the state rate; local tax still due), for 10 years at $200 million of investment or 15 years at $250 million. Who qualifies: Owners, operators and occupants of a Texas data center of at least 100,000 square feet that commit to 20 qualifying jobs and at least $200 million of investment over five years. Not for data centers with a Chapter 313 value limitation.

### When does the Virginia data center sales tax exemption end?

It covers the sales and use tax otherwise due on qualifying equipment, through June 30, 2035, or later for operators that commit to $35 billion or $100 billion. Operators sign an agreement with the Virginia Economic Development Partnership and meet its investment and job minimums.

### Are states ending data center tax incentives?

Some are pausing them. Arizona, Illinois, North Carolina and Ohio stopped new claims on a data center sales tax break in 2026, by a pause or a repeal. Spezia's laws tracker holds 98 state measures that would cut a break back, 30 of them still moving.

### Can contractors and equipment suppliers claim data center incentives?

Not the equipment exemptions, which belong to the data center's owner, operator or tenant. Contractors and suppliers have their own programs: training grants, job tax credits, utility rebates and federal deductions on the equipment they buy.

### Is this tax advice?

No. It is research. Every program is checked against its official page, but whether a business or project qualifies depends on facts only it and its adviser can confirm, and each program's own rules decide.

## Sources

1. [Arizona Commerce Authority: Computer Data Center Program](https://www.azcommerce.com/incentives/computer-data-center-program/), azcommerce.com
2. [Georgia DOR Rule 560-12-2-.117, High-Technology Data Center Equipment](https://dor.georgia.gov/document/document/rule-560-12-2-117-high-technology-data-center-equipment/download), dor.georgia.gov
3. [Illinois DCEO: Data Center Investment Tax Exemptions and Credits](https://dceo.illinois.gov/expandrelocate/incentives/datacenters.html), dceo.illinois.gov
4. [IEDC: Data Center Sales Tax Exemption](https://iedc.in.gov/indiana-advantages/investments/data-center-sales-tax-exemption/overview), iedc.in.gov
5. [Kansas Commerce: SB 98 Data Center Sales Tax Exemption](https://www.kansascommerce.gov/program/business-incentives-and-services/sb-98-data-center-sales-tax-exemption/), kansascommerce.gov
6. [NCDOR: Important Notice: Repeal of Exemptions for Electricity Used at Datacenters](https://www.ncdor.gov/taxes-forms/sales-and-use-tax/other-sales-and-use-tax-resources/important-notices-issued-sales-and-use-tax-division/important-notice-repeal-exemptions-electricity-used-datacenters), ncdor.gov
7. [Ohio Revised Code 122.175](https://codes.ohio.gov/ohio-revised-code/section-122.175), codes.ohio.gov
8. [Pennsylvania computer data center equipment sales tax exemption certification Department of Revenue FAQ](https://www.pa.gov/content/dam/copapwp-pagov/en/revenue/documents/incentivescreditsprograms/computerdatacenterequipprog/documents/computer_data_center_equip_exemption_program_faq.pdf), pa.gov
9. [Texas Comptroller: State sales tax exemption for qualifying data centers](https://comptroller.texas.gov/taxes/data-centers/), comptroller.texas.gov
10. [VEDP: Data Center Retail Sales and Use Tax Exemption](https://www.vedp.org/incentive/data-center-retail-sales-use-tax-exemption), vedp.org
11. [Wisconsin DOR: Qualified Data Center Exemption](https://www.revenue.wi.gov/Pages/FAQS/ExemptionforQualifiedDataCenter.aspx), revenue.wi.gov
12. [Found money: data center tax breaks and grants](https://spezia.ai/tools/found-money), Spezia
13. [Data center laws and local rules](https://spezia.ai/tools/legislation), Spezia
14. [Spezia U.S. data center project tracker, research run of November 9, 2026](https://spezia.ai/tools/buildout), Spezia

## Cite this

Spezia. "Data center tax incentives by state (2026): exemptions, credits, abatements, grants" Spezia, November 13, 2026. https://spezia.ai/blog/data-center-incentives-by-state