Amazon benefits from Pennsylvania tax break as lawmakers debate its repeal

Amazon’s Pennsylvania data-center rollout, part of a pledged $20 billion investment, is being subsidized by a 6% sales-and-use tax break on equipment, a benefit the state Department of Revenue confirmed for two sites. The company has applied for permits to build dozens of additional facilities, including a 4.5-gigawatt campus on a former coal-plant site in Homer City and a 1,300-acre project in Hazle Township. In June, the Democratic-controlled House and Republican-controlled Senate each passed versions of a repeal bill that could save the state close to $2 billion in revenue by 2031, yet the measure never reached Governor Josh Shapiro’s desk before the budget was signed.

Shapiro’s August executive order, called GRID, bans nondisclosure agreements and obliges data-center operators to meet strict, legally binding environmental and community standards, but opponents say only a full repeal will halt the industry’s growth. Environmental groups and some legislators continue to push for additional legislation, though the short legislative session and upcoming elections make the outcome uncertain.