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SB 245

AN ACT ELIMINATING CERTAIN TAX INCENTIVES FOR DATA CENTERS.

2026 Regular Session Introduced by Billy Buckbee and 6 co-sponsors

Connecticut bill eliminates tax incentives for data centers, shifting away from corporate recruitment strategy amid questions about fiscal and environmental costs.

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Bill Summary · SB 245

Legislative bill overview

SB 245 would eliminate specific tax incentive programs that Connecticut currently offers to data center companies. The bill targets tax breaks and financial benefits previously granted to attract data center development and operations within the state. This represents a policy reversal from earlier incentive-based approaches to data center recruitment.

Why is this important

Data centers consume significant electricity and real estate resources, making their location strategically important for state economic development and energy planning. Tax incentives are a major tool states use to compete for data center investment, so eliminating them signals a shift in Connecticut's economic priorities and could affect future data center location decisions. The move raises questions about whether the state believes these incentives were ineffective, too costly, or misaligned with other state goals like sustainability.

Potential points of contention

  • Economic competitiveness: Neighboring states may maintain or increase their own data center incentives, potentially disadvantaging Connecticut in attracting or retaining these facilities and related jobs
  • Cost-benefit analysis: Disagreement over whether eliminated incentives actually delivered adequate returns on investment or whether they primarily benefited corporations without equivalent public benefit
  • Energy and environmental concerns: Uncertainty about whether eliminating incentives reflects concerns about data centers' substantial electricity consumption and environmental impact, or represents a separate fiscal concern

Compiled from official sources — confirm details with the bill’s official record.

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