Big tech gets decades of tax breaks for data centers

Sales tax: exemptions; compliance with enterprise data center construction labor act; require. Amends sec. 4ee of 1933 PA 167 (MCL 205.54ee). TIE BAR WITH: HB 5785'26, HB 5786'26

Introduced· 2026-04-14

Who's it for

Who's it for: Big Business

What it means for you

4/10Mixed

Mixed: some good, some bad ·

Cost shift

Plain‑English summary, cross‑checked against the official bill text.

This bill would excuse tech companies from paying sales taxes on data center equipment until 2050, as long as they create jobs and use clean energy.

Our take

What we think, in plain words.

Data centers are massive warehouses of computer servers that use a ton of electricity and water. This bill offers tech giants a sweet deal: skip paying state sales taxes on their equipment for the next 25 to 40 years. In exchange, the companies have to hit job creation goals, build green facilities, and buy clean energy. While the environmental and labor rules are good protections, ordinary taxpayers are still left footing the bill for the taxes these billion-dollar companies get to skip.

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The facts

What the bill actually says, no spin.

Excuses tech companies from paying sales tax on data center equipment through 2050, or 2065 for certain old industrial sites.
Requires the industry to create at least 1,000 jobs by 2026 to keep the tax break.
Forces data centers to use 90 percent clean energy and meet green building standards.
Requires companies to report their hiring and spending to the state to prove they are following the rules.