Legislature approves tax breaks for data centers
AUSTIN (AP) — High-tech data centers in Texas will receive a tax break from state lawmakers in a proposed law on its way to the governor.
The bill approved on Friday exempts from sales tax the equipment needed to operate a data center, a computer facility that makes the Internet possible.
The facility must be more than 100,000 square feet and the equipment cannot be used for telephone services. The center would also have to create at least 20 jobs and the owner would need to invest more than $150 million.
If signed by Gov. Rick Perry, the measure would cost the state $14.6 million in tax revenue in the 2014-2015 budget cycle and $26.8 million in the 2016-2017 budget.
Opponents complained the state is losing money for education and health care.