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House votes to repeal sales-tax exemption for data center equipment
Summary
The Pennsylvania House passed House Bill 2198 on June 25, 2026, repealing the sales-and-use tax exemption for computer data center equipment; the bill passed on final passage by a vote of 197–5 after floor debate about fiscal impact and local community burdens.
Harrisburg — The Pennsylvania House on June 25 passed House Bill 2198, a measure to repeal the sales-and-use tax exemption for computer data center equipment, on a final passage vote of 197 yeas to 5 nays.
Representative Vitale, the bill’s sponsor, told the chamber the change is straightforward and urged colleagues to support it. “This is a very simple bill conceptually,” Vitale said, adding that “it's estimated by the governor for these data centers in fiscal year 2030, will cost the Commonwealth about $517,000,000 a year.” He argued the exemption is no longer needed now that data centers are established in the state.
Supporters emphasized local impacts and the scale of recent data-center proposals as reasons to end the exemption. Representative Haddock said one proposal in Luzerne County offered $10,000 to each household and $105,000,000 to the municipality, plus additional incentives—“that would total a $165,000,000 in incentives,” he said—arguing companies able to offer such packages can afford to pay the 6% sales tax. Representative Mullins described the industry as “a massive billion dollar global powerhouse,” said his area has about 16 pending applications, and warned of strains on water, land and electricity.
Representative Williams framed the issue as partly a question of energy cost allocation and infrastructure, noting prior executive and industry pledges and saying the House still needs legislation to ensure data centers pay for related energy and infrastructure costs. He cautioned that related provisions had been attached to other bills in recent days, creating policy tension on the floor.
After debate, the clerk reported the yeas and nays on final passage: 197 yeas and 5 nays. The clerk announced that the majority required by the constitution having voted in the affirmative, the bill passes and will be presented to the Senate for concurrence.
The House also moved several bills from the table to the active calendar, heard committee meeting announcements, and adjourned until Friday, June 26, 2026, at 12:00 p.m., unless recalled sooner.
