Without Sales and TPP Tax Exemptions, Data Centers Would Face a 90% Effective Tax Rate on Net Income

Average Effective Tax Rate on Data Center Profits With and Without Existing Sales Tax Exemptions and Abatements for Tangible Personal Property Taxes

Note: Calculations are for average tax liability over the first 10 years of operations to capture both new and depreciating property and taxable purchases, and represent an average across data centers in 12 modeled jurisdictions. The model firm has $220 million in gross revenue and 15 percent net income before tax, and calculations assume qualification for exemptions routinely available to data centers of this size.
Chart: Walczak Policy Consulting, The SALT Road SubstackSource: Author's calculations based on Tax Foundation study using state statutes, state revenue agency documentation, local government publications, and local utility costs. Download imageCreated with Datawrapper