House Finance reports repeal of data‑center equipment exemption after heated debate, 8–6

The House Finance Committee on Saturday voted 8–6 to report a substitute Senate bill that removes a tax exemption for replacement of equipment for data centers, advancing the measure out of committee.

John Bernitzky briefed the proposal, and Representative Jacobson urged a no vote, citing the Sentara data center in Puyallup as an example of successful local investment and job creation tied to the exemption. Jacobson said the owners invested about $200,000,000 since 2024 and that tenant investments and local hiring followed; he warned that removing the exemption risks losing future data‑center projects to other states.

Representative Zahn said she would be a “soft yes” but voiced concern about a retroactivity clause and potential ‘clawback’ of certificates already issued. Representative Orcutt strongly opposed repeal, recounting a past episode when uncertainty over incentives led multiple companies to locate elsewhere and an estimated $1 billion in lost investment; she argued sudden expirations could interfere with private contracts.

Staff called the roll after discussion. The transcript records 8 ayes, 6 nays and 1 excused; by that vote the substitute bill was reported out of committee with a due‑pass recommendation. The committee adjourned after the vote.

What’s next: The bill was reported with committee recommendation; the transcript does not record a floor vote or next calendar step.

Sources: Committee briefings by John Bernitzky; remarks by Representatives Jacobson, Zahn and Orcutt; roll call recorded in committee proceedings.