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Senate rejects bill to codify sales‑tax refund for data centers after floor debate over incentives and grid impact
Summary
Senate Bill 177, which would have authorized a four‑year state sales‑tax refund on equipment for data‑center operations (capped at $500 million in equipment cost), failed on a close roll‑call vote after extensive debate about economic development, budget tradeoffs, and utility impacts.
The Senate voted down Senate Bill 177, a proposal to codify a sales‑and‑use‑tax refund for brick‑and‑mortar data centers operating in South Dakota. Sponsor Senator Dave Wheeler framed the bill as a tool to provide regulatory certainty to attract data centers that currently choose other states; opponents warned of large foregone tax revenues and potential strain on power and water resources.
Under the bill as introduced and later amended on the floor, the refund would have applied only to state sales tax on…
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