tax exemptions

Texas lawmakers are examining the financial impact of tax exemptions provided to data centers, while a group of advocates is urging for stronger environmental protections against the effects of these facilities.

China is ending tax exemptions that fueled the rise of its electric-vehicle (EV) and solar industries, which could increase production costs and pressure manufacturers as Beijing aims to curb overcapacity and price wars. The tax could add about 1,000 yuan (US$147) to the cost of producing an EV.

Researchers from the Citizens Research Council of Michigan urge a case-by-case evaluation of hyperscale data center projects, highlighting variations in economic impact, job creation, and tax incentives. The report notes that while tax exemptions aim to boost long-term tech industry growth, evidence suggests limited success, and data centers often provide few lasting jobs.

Pakistan's government reported a 3.37% decline in tax exemptions to Rs2.353 trillion in FY26, the first reduction in seven years, despite initial high figures and revisions. The decline follows seven consecutive years of increases and comes amid revenue shortfalls, with exemptions impacting federal-provincial revenue sharing.

Ohio residents are testifying against data centers at a Statehouse committee hearing, citing concerns over environmental impact, energy use, and tax exemptions. Lawmakers are pushing to end state tax breaks for data centers, which provided $1.57 billion in exemptions last year, nearly 12 times initial estimates. Governor Mike DeWine halted new tax incentives pending a legislative review.

US drivers are traveling to Native American tribal lands to access cheaper gasoline due to tax exemptions on fuel sales in these areas. Tribal lands offer some of the lowest fuel prices in the country.