Data center tax break proposal fails in South Dakota legislative committee

By: Makenzie Huber

Outlets: South Dakota Searchlight

Published: February 4, 2026

Words: 725

Last Updated: 3 weeks, 1 day ago

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A bill that would have created a 50-year sales tax break on equipment and software purchases for data centers was stopped at the committee level on Wednesday at the South Dakota Capitol in Pierre.

Members of the House State Affairs Committee voted 9-3 against the bill, though some members expressed interest in attempting to revive it later this legislative session, which continues into March.

The tax exemption would be granted by the state Department …

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