1. United States
2. Pa.
3. Letter

Pennsylvania could lose an estimated $2 billion in tax revenue by mid-2031 due to a sales tax exemption for data center equipment. Annual projected losses are expected to grow dramatically, reaching more than $500 million per year within the next five years. At a time when lawmakers are debating how to fund education, human services, infrastructure, and rising healthcare costs, the commonwealth cannot afford massive tax expenditures that lack full transparency and clear accountability. The current data center tax exemption has no cap and limited reporting requirements. Even state budget projections have fluctuated significantly in recent years, reflecting uncertainty about the program’s true cost. Without mandatory disclosure of how much companies are claiming under this exemption, taxpayers are left without a clear picture of the long-term financial impact. Supporters argue that the exemption encourages economic growth and job creation. But economic incentives must be evaluated honestly. The public deserves to know whether the benefits truly outweigh the cost, especially when the state is facing ongoing budget pressures. I am writing to demand that the Pennsylvania General Assembly and the Governor take two immediate actions: First, repeal the existing sales tax exemption for data centers unless and until its economic return can be clearly demonstrated. Second, require full annual public reporting of all tax expenditures related to data center development, including the total value of exemptions claimed and the number of permanent jobs created. Tax policy should prioritize transparency, fiscal responsibility, and measurable outcomes. If an industry is thriving and expanding rapidly, it should not rely on unlimited tax exemptions without strict oversight. Pennsylvania must balance economic development with predictable state revenues and responsible budgeting. Before billions more are forfeited, lawmakers must restore transparency and protect the commonwealth’s long-term financial stability.