Texas Weighs Repealing $3.3 Billion Data Center Tax Break

Texas lawmakers are reviewing long-standing sales-tax exemptions for qualifying data centers after projected forgone revenue rose to roughly $3.2 billion to $3.3 billion for an upcoming two-year budget period. A July 27 Senate Finance Committee hearing focused on the program's growth, delayed compliance reviews, and whether its economic benefits justify its fiscal and infrastructure costs. Officials and lawmakers are considering reforms or repeal ahead of the next legislative session, while industry representatives argue that competitive incentives remain important for investment.