{"id":385,"date":"2026-06-02T17:46:55","date_gmt":"2026-06-02T17:46:55","guid":{"rendered":"https:\/\/corporate-movers-usa.com\/?p=385"},"modified":"2026-06-02T17:46:55","modified_gmt":"2026-06-02T17:46:55","slug":"shapiro-pitches-data-center-incentives-as-budget-deadline-approaches","status":"publish","type":"post","link":"https:\/\/corporate-movers-usa.com\/?p=385","title":{"rendered":"Shapiro pitches data center incentives as budget deadline approaches"},"content":{"rendered":"<div>\n<div>\n<div><audio><\/audio><\/div>\n<\/div>\n<p><i>Spotlight PA<\/i><i> is an independent, nonpartisan, and nonprofit newsroom producing investigative and public-service journalism that holds the powerful to account and drives positive change in Pennsylvania. <\/i><i>Sign up for our free newsletters<\/i><i>.<\/i><\/p>\n<p>Read more <a href=\"https:\/\/corporate-movers-usa.com\/?p=383\">The Wallingford-Swarthmore School District is pushing back a planned high school renovation amid budget challenges<\/a><\/p>\n<div><\/div>\n<p>HARRISBURG \u2014 Gov. Josh Shapiro\u2019s office has released a full, detailed version of its proposed incentives for data center developers ahead of Pennsylvania\u2019s June 30 budget deadline.<\/p>\n<div><\/div>\n<div>\n<div>\n<div><\/div>\n<\/div>\n<\/div>\n<div><\/div>\n<p>The proposal would add conditions for the projects to receive a major state tax exemption and participate in preferential tax zone programs. These standards, which the administration is calling the Governor\u2019s Responsible Infrastructure Development, are an \u201cimportant part\u201d of \u201cbroader conversations as budget negotiations continue,\u201d a spokesperson for the administration told Spotlight PA.<\/p>\n<div><\/div>\n<p>Shapiro and other governors are balancing the desire to attract data centers and their economic benefits \u2014 particularly construction jobs \u2014 with concerns from environmental groups and affected communities about the impact the projects will have on air and water quality, water supply, and energy prices.<\/p>\n<div><\/div>\n<p>The majority leader for the Republican-controlled state Senate, Joe Pittman (R., Indiana), previously told Spotlight PA he wants to ensure Pennsylvania remains competitive when it comes to attracting data centers.<\/p>\n<div><\/div>\n<p>\u201cI see this as something that is an increasing priority for members generally, and if there are ways that we can address it in the context of the budget, we can certainly look to do that,\u201d he said last month. \u201cI don\u2019t think getting a budget done is contingent on data center issues.\u201d<\/p>\n<div><\/div>\n<div><\/div>\n<div><\/div>\n<p>In a more recent interview, Pittman said that the \u201cbroad construct\u201d of the administration\u2019s proposal aligns with his concerns and that he expects legislative discussions to continue \u201cthroughout the coming months.\u201d<\/p>\n<div><\/div>\n<p>Rob Bair, the president of the Pennsylvania Building &amp; Construction Trades Council, said the administration\u2019s plan \u201cchecks all the boxes\u201d when it comes to environmental, labor, and economic development, but he\u2019s unsure about its legislative prospects.<\/p>\n<div><\/div>\n<p>\u201cCan we get it through the Senate? I don\u2019t know,\u201d Bair told Spotlight PA. \u201cThere are going to be some Democrats in the House that aren\u2019t going to vote for it because they want a moratorium.\u201d<\/p>\n<div><\/div>\n<p>A spokesperson for the Pennsylvania chamber of commerce, meanwhile, said that while it broadly supports Shapiro\u2019s approach to attracting data center investment, it has \u201cinitial concerns,\u201d particularly about the proposal to add conditions to the projects\u2019 eligibility for the state\u2019s tax break on major purchases related to data center development.<\/p>\n<div><\/div>\n<div><\/div>\n<div><\/div>\n<p>That proposal \u201cintroduces complexity that could make Pennsylvania less competitive,\u201d the spokesperson said. \u201cWe oppose repealing or conditioning this exemption, just as we would oppose any comparable legislative bait-and-switch that creates a perception of Pennsylvania\u2019s business climate as unreliable and unpredictable.\u201d<\/p>\n<div><\/div>\n<p>Reactions from environmental groups have ranged from hopeful to hostile.<\/p>\n<div><\/div>\n<p>Katie Blume, the legislative director of Conservation Voters of Pennsylvania, called GRID an important step, but emphasized the need for additional legislation to regulate data centers, pointing to a comprehensive bill the state House passed in March.<\/p>\n<div><\/div>\n<p>She\u2019s worried that should GRID become part of budget negotiations, the incentives will be watered down.<\/p>\n<div><\/div>\n<div><\/div>\n<div><\/div>\n<p>\u201cI really need the House and the governor to stand firm if this gets looped into negotiations,\u201d Blume said. \u201cMy concern with the budget process is that there\u2019s a little less transparency.\u201d<\/p>\n<div><\/div>\n<p>Other groups are more skeptical of Shapiro\u2019s proposal. The Better Path Coalition, a grassroots consortium of environmental groups, pointed to the administration\u2019s behind-the-scenes communications with Amazon, which is developing multiple data centers in the commonwealth, as a cause for concern.<\/p>\n<div><\/div>\n<p>A group of Montour County residents who organized against data center development obtained a trove of emails from the administration through a Right-to-Know request, which showed that a top staffer sent an Amazon lobbyist a \u201cfeedback draft of the principles\u201d that the administration planned to lay out in GRID before the standards were public.<\/p>\n<p>Read more <a href=\"https:\/\/corporate-movers-usa.com\/?p=381\">Meredith Elementary in South Philadelphia amends Pride celebration after conservative backlash<\/a><\/p>\n<div><\/div>\n<p>The records, which were previously reported by Heatmap, also included an email that state Secretary of Community and Economic Development Rick Siger sent to Amazon. He told the company the GRID standards are \u201cintended to be voluntary,\u201d and said Shapiro is \u201cnot proposing to ban or even discourage data centers or other large loads that don\u2019t agree to implement them from siting here.\u201d<\/p>\n<div><\/div>\n<div><\/div>\n<div><\/div>\n<p>That, the Better Path Coalition wrote in a recent statement, shows Shapiro\u2019s GRID standards are \u201cstrictly performative.\u201d<\/p>\n<div><\/div>\n<p>A Shapiro administration spokesperson told Spotlight PA that this was part of an engagement process that \u201cincluded conversations with numerous companies and organizations representing the data center and energy industries, environmental community stakeholders, as well as local government organizations and labor groups.\u201d That feedback helped the administration develop its proposal, the spokesperson said, and the process was \u201ctypical in any policy development process the Administration undertakes.\u201d<\/p>\n<div><\/div>\n<div>\n<h3>What is Shapiro proposing?<\/h3>\n<\/div>\n<div><\/div>\n<p>Shapiro first introduced the broad strokes of his data center incentives in his February budget address. He wants developers to bring their own power generation to the grid or pay for the energy they used; to commit to transparency; to hire and train local workers; and to follow environmental protection guidelines.<\/p>\n<div><\/div>\n<p>Following these standards could get developers faster permitting, officials later said \u2014 something the administration can offer unilaterally.<\/p>\n<div><\/div>\n<p>But in the full standards released last week, the administration publicly confirmed for the first time that it also hopes to rewrite a major sales-and-use tax exemption. Under the planned revision, developers would have to follow the new standards to receive the exemption.<\/p>\n<div><\/div>\n<p>Currently, data center developers that meet certain  do not have to pay the state\u2019s 6% sales tax on purchases related to  their campuses, including their expensive servers. The exemption is projected to cost the state over $2 billion in tax revenue by mid 2031, and some lawmakers have called to repeal it.<\/p>\n<div><\/div>\n<p>To add new conditions to the exemption, Shapiro would need the state legislature to pass a bill rewriting the program.<\/p>\n<div><\/div>\n<p>The administration is also proposing that data centers be required to meet GRID standards in order to participate in economic opportunity zones, which allow investors to receive tax breaks if they build projects in specific places. That too would require action from the legislature.<\/p>\n<div><\/div>\n<p>A spokesperson for the administration said it intends to propose legislation that would \u201ccreate those requirements for data center developers seeking Commonwealth tax benefits.\u201d<\/p>\n<div><\/div>\n<p>The administration\u2019s new, detailed descriptions of its GRID standards include:<\/p>\n<div><\/div>\n<div>\n<ol>\n<li>\n<p>Escalating requirements for the amount of clean energy data centers must build or buy to power their operations, which would top out at 32% of total usage by 2035.<\/p>\n<\/li>\n<li>\n<p>Creating at least 200 construction jobs.<\/p>\n<\/li>\n<li>\n<p>Paying $1.5 million annually in total wages after four years of operation.<\/p>\n<\/li>\n<li>\n<p>Submitting environmental sustainability plans that detail how the data center will employ \u201cleading technologies to limit water and energy consumption.\u201d<\/p>\n<\/li>\n<\/ol>\n<\/div>\n<div><\/div>\n<p>In order to get GRID benefits \u2014 whatever they end up being after legislative negotiation \u2014 the administration currently plans to have data centers submit applications to the state Department of Revenue and the Office of Transformation and Opportunity, which Shapiro created in 2023. Those agencies will assess whether companies\u2019 plans meet Shapiro\u2019s standards.<\/p>\n<div><\/div>\n<p>The administration plans to accept applications annually.<\/p>\n<div><\/div>\n<p>Shapiro isn\u2019t alone in trying to initiate new data center regulation.<\/p>\n<div><\/div>\n<p>Lawmakers in the state House have in recent months passed bipartisan legislation that would regulate data centers\u2019 interactions with utilities, monitor their energy and water usage, and mandate they pay into low-income energy assistance programs. Pittman previously told Spotlight PA he didn\u2019t want to commit to those proposals.<\/p>\n<div><\/div>\n<p><i><b>BEFORE YOU GO \u2026<\/b><\/i><i> If you learned something from this article, pay it forward and contribute to Spotlight PA at <\/i><i>spotlightpa.org\/donate<\/i><i>. Spotlight PA is funded by <\/i><i>foundations and readers like you<\/i><i> who are committed to accountability journalism that gets results.<\/i><\/p>\n<p>Read more <a href=\"https:\/\/corporate-movers-usa.com\/?p=379\">Newark mayor says city will sue on health grounds in effort to shutter Delaney Hall ICE detention center<\/a><\/p>\n<div><\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>There would be conditions for the projects to get state tax exemptions and participate in preferential tax zone programs. Reactions from environmental groups have ranged from hopeful to hostile.<\/p>\n","protected":false},"author":1,"featured_media":384,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[],"class_list":["post-385","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.7 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Shapiro pitches data center incentives as budget deadline approaches - Corporate Movers USA<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/corporate-movers-usa.com\/?p=385\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Shapiro pitches data center incentives as budget deadline approaches - Corporate Movers USA\" \/>\n<meta property=\"og:description\" content=\"There would be conditions for the projects to get state tax exemptions and participate in preferential tax zone programs. 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