The House members voting against the bill include: Rep. Manuel Guzman (D-Berks), Rep. Marci Mustello (R-Butler), Rep. Eric Nelson (R-Westmoreland) Rep. James Struzzi (R-Indiana) and Rep. Tim Twardzik (R-Schuylkill).
Rep. Greg Vitali (D-Delaware), prime sponsor, introduced the bill by saying-- “This is a very simple bill conceptually. A number of years ago, legislation was enacted that would exempt data centers from paying sales tax on equipment they've purchased.
“They were the years when we were trying to encourage data centers in Pennsylvania.
“Now we are in a situation where we're working on moratorium legislation with regard to data centers. We're trying to put the brakes on.
“So clearly this sales tax exemption is no longer needed.
“The sales tax exemption, it's estimated by the governor for these data centers in fiscal year 2030 will cost the Commonwealth about $517 million a year.
“Think of what an additional $517 million can buy as far as budgetary needs.
“We're giving these sales tax exemptions to companies like Amazon, Microsoft, Alphabet, companies that have net incomes in excess of $100 billion a year.
“This is not right. This is not needed. This is not what our constituents want.
“So I would ask for an affirmative vote on House 2198.”
Rep. Jim Haddock (D-Lackawanna) also supported the bill-- “Just yesterday in Luzerne County, one of our papers had an article that a data center offered $10,000 to each household in a community if they got approval for a data center.
“They offered the municipality $105 million if they got the approval.
“They threw out another offer of $15 million in other local incentives for the approval of the data center.
“That would total $165 million in incentives that they want to pay for the approval of their data center.
“So I think if they can pay $165 million at perks, they can certainly afford to pay 6% sales tax on their equipment and on their computers just like every other Pennsylvanian does when they buy something.
“In Luzerne County, another data center received already a 10 year tax abatement from paying property taxes.
“If they can afford to pay $165 million in a local bonus for approval, I think they can well pay their taxes on the land and they can certainly pay the 6% sales tax like every other Pennsylvanians.
“I strongly support House Bill 2198, a repeal of the sales tax in Pennsylvania to data centers for an incentive.”
Rep. Kyle Mullins (D-Lackawanna) supported the bill saying-- “I rise today in strong support of House Bill 2198 and I appreciate my colleague for leading on this issue.
“The choice is very simple. The data center industry is no longer an emerging sector looking for a foothold.
“It is a massive billion dollar global powerhouse and this costly tax credit is no longer appropriate.
“As everyday costs continue to rise, our neighbors deserve relief to their pocketbooks, not billionaires.
“But this isn't just about the bottom line in Harrisburg.
“It is about the heavy compounding burden these facilities are dropping directly onto our local communities.
“They roll into our towns with massive physical footprints demanding unprecedented amounts of water, land, and electricity that threaten to destabilize our power grid and drive up consumer energy costs for everyday families.
“When it comes to fighting back against this irresponsible, aggressive, speculative gold rush, there's a lot of talk across this Capitol building, but this Chamber under the leadership of House Democrats are the only ones generally walking the talk.
“We aren't just talking about protections. We are actively passing them.
“We advance legislation to shield utility payers from surging costs and just yesterday we passed House Bill 2496 to deliver a vital pause for local governments to put planning back where it belongs in the hands of our local communities.
“I know the stakes of this fight intimately because I live it every day in Northeastern Pennsylvania.
“In Lackawanna County, there are at last count 16 applied for data center projects, massive campuses.
“In one borough alone, there are six proposals, 51 buildings that would take up roughly 14% of the landmass of that one borough.
“Tell me that's appropriate.
“I'm proud to have authored House Bill 2150 to mandate strict energy and water usage transparency from these facilities because if they want to use our land and resources, the bare minimum they owe us is the truth.
“Our efforts cannot end here on the House floor though.
“While this majority acts, the majority in the other Chamber of the state Senate has repeatedly sat on its hands refusing to even consider, let alone vote on a single piece of data center regulation or legislation.
“Our communities can't afford inaction while predatory development accelerates.
“Repealing this outdated sales tax exemption is the next logical step in our unified effort to demand true corporate accountability.
“Big tech doesn't need a taxpayer subsidy to build in Pennsylvania and Pennsylvanians can no longer afford to give them one.
“I want to thank my colleague for his leadership and I urge my colleagues to support this necessary legislation.”
Rep. Craig Williams (R-Chester) was the only Republican member to offer comments on the bill. He said in part--
“Yesterday we passed a bill that required community development plans, water plans, energy plans, employment plans as part of the governor's responsible infrastructure development bill. [House Bill 2650 - Read more here]
“Today, like Lucy holding the football for Charlie Brown, we're going to pull that football away.
“Today we pull out the very rug from underneath the bill we just passed yesterday. We're in a pickle.
“I suppose part of the argument is we'll just send a menu of options to the Senate and let them solve it and in the process aggregate our responsibility to solve it.
“Today we pull out the rug. You're in a bit of a pickle. I'm interested to see what you'll do.”
Rep. Williams voted for the bill.
The bill now goes to the Senate for consideration.
Click Here for the House Fiscal Note & Summary.
Click Here to watch a video of the House consideration of House Bill 2198.
[Note: On June 24, the House passed House Bill 2650 (Webster-D-Montgomery) limiting the state data center tax exemption to A.I. data center developers who follow Gov. Shapiro's Responsible Infrastructure Development Standards (GRID) by a vote of 134 to 58. Read more here]
Related Articles This Week:
-- Hundreds Of Residents From Communities Across PA Dealing With A.I. Data Center Development Rally At State Capitol To Support Bipartisan Legislation To Enact A 3-Year A.I. Data Center Moratorium [PaEN]
-- PA House Passed 20 A.I. Data Center Bills, Many By Lopsided Bipartisan Votes; PA Senate Has Yet To Act On Any Data Center Bills [PaEN]
-- PA House Passes Bill Giving Individual Municipalities Authority To Pause Consideration Of A.I. Data Center Proposals For 6 Months [PaEN]
-- PA House Nearly Unanimously Passes Bill To Repeal State Data Center Computer Equipment Sales Tax Exemption [PaEN]
-- PA House Passes Bill Limiting State Data Center Sales Tax Exemption To Those Developers Following Gov. Shapiro's Responsible Infrastructure Development Standards [PaEN]
-- Lt. Gov. Davis Brings Together Utility Industry Experts To Highlight Solutions To Rising Energy Costs
-- Senate Democratic Policy Committee Holds Hearing On Solutions To Lower Consumer Electric Bills
NewsClips:
-- Pittsburgh Business Times: Environmental Groups Push PA Lawmakers To Pass HB 1834 To Protect Ratepayers, Regulate A.I. Data Centers
-- PA Capital-Star: PA House Passes Bill With $1.7 Billion Tax Cut On Electricity, Reins In Public Utility Company Profits [Electric, Natural Gas, Water, Wastewater] By Setting New Rate Formula
-- House Unanimously Passed Bill To Base All Electric, Natural Gas, Water And Wastewater Rates On A Market-Based Return On Equity To Address Increasing Utility Bills [House Bill 2224]
-- The Citizens’ Voice: Project Hazelnut A.I. Data Center Offers $10,000 To Hazle Twp. Households As An Incentive To Approve The Plan [4,505 Households In Twp. - $45 Million]
-- PennLive: Amid Growing Voter Outcry, A.I. Data Centers Have Emerged As An Election Issue For PA Lawmakers
-- Republican Herald: Mount Carmel Area Residents Concerned About Data Centers Launch New Grassroots Group Aimed At Giving Coal Region Communities A Stronger Voice
-- PennLive: Western PA Coal Towns Are Ground Zero For A.I. Data Centers: ‘A Boom Coming’
-- Pittsburgh Business Times: How A.I. Data Centers Lost The PR War And What It Means For Business
-- AP: A.I. Is An Energy And Water Hog, Here’s What You Can Do To Counter That
-- Wall Street Journal: A.I. Data Center Boom Sparking Third Wave Of Inflation - Cost Of Computer Chips - Following Energy, Labor & Constructions Costs
[Posted: June 25, 2026] PA Environment Digest
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