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Data-center tax break stalls amid labor and environmental concerns; juvenile rehabilitation, public defense and education funding to return next session

Legislative Sessions · March 12, 2026
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Summary

Leaders said a data-center tax-break bill failed to gather enough votes out of Ways and Means after pressure from labor and industry; they flagged juvenile rehabilitation, public-defense funding and education funding formulas as unfinished items for the next session.

When asked why a data-center tax-break bill "fell apart" this year, Senate Majority Leader Jamie Peterson said it never secured enough support to clear Ways and Means and that last-day negotiations were required.

"Well, it didn't have enough votes to get out of the ways and means," Peterson said, describing the bill’s defeat as the product of competing pressures: data-center proponents and construction-trade stakeholders. He singled out labor concerns as particularly salient, saying that IBEW Local…

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