Pennsylvania offers tax breaks for data center equipment

Amending the act of March 4, 1971 (P.L.6, No.2), entitled "An act relating to tax reform and State taxation by codifying and enumerating certain subjects of taxation and imposing taxes thereon; providing procedures for the payment, collection, administration and enforcement thereof; providing for tax credits in certain cases; conferring powers and imposing duties upon the Department of Revenue, certain employers, fiduciaries, individuals, persons, corporations and other entities; prescribing crimes, offenses and penalties," in computer data center equipment incentive program, further providing for definitions, for application for certification, for eligibility requirements relating to sales and use tax refund program, for notification, for eligibility requirements relating to sales and use tax exemption program and for notification and records.

Engrossed· 2026-06-30

Who's it for

Who's it for: Data center industry

What it means for you

3/10Hurts you

Bad for everyday people ·

Cost shift

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

If passed, the bill would let data center owners claim sales tax refunds and exemptions on their equipment, reducing their costs while the state loses tax revenue.

Our take

What we think, in plain words.

Tax breaks could attract data centers to Pennsylvania, creating jobs and tech growth, but everyday Pennsylvanians will pay for the lost revenue through higher taxes or reduced services.

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The facts

What the bill actually says, no spin.

The bill amends the 1971 tax act to add a computer data center equipment incentive program.
It creates a sales and use tax refund and exemption for qualifying data center equipment.
Eligibility requires certification and notification to the Department of Revenue.
The bill passed the House with a 171-31 vote and is now engrossed.