Nebraska has a historic opportunity to improve economic growth, gain new tax revenue, and add jobs from data centers, but only if state officials move on policies that encourage reliable, affordable power, according to a new report released Thursday by National Taxpayers Union in partnership with the Platte Institute.
As the state grapples with ongoing challenges from declining and aging populations, data centers and digital infrastructure represent one of the most promising opportunities for economic expansion.
“Nebraska lawmakers and regulators should not hesitate to meet the electricity demands of the modern economy by keeping power plants online, allowing privately-owned generation, and encouraging greater transparency in supply and pricing decisions,” Pete Sepp, President of National Taxpayers Union, said. “These policies would give a strong start to a strategy that will keep the state competitive and attract investments to help Nebraskans prosper.”
At stake for Nebraska is new businesses, jobs, and an expanded economic base that Nebraska lawmakers could use to lower taxes for residents. Data center jobs offer competitive pay and contribute even further to the state's economy through indirect employment. Companies are constantly reinvesting due to the industry’s rapid pace of change, and that capital investment creates jobs for local contractors, suppliers, and construction workers, according to the report.
“Acting now to support investment and innovation will help ensure that Nebraska preserves what makes the state special while building a stronger economic future,” according to the report, written by Platte Institute Chief Strategy Officer Jim Smith and Senior Tax Policy Advisor Jared Walczak.
The report also says that, for Nebraska to remain competitive with neighboring states like Iowa, data centers should be taxed under the same principles that apply to other businesses. For example, property taxes should be limited to land and structures, not business tangible personal property such as machinery and equipment. Sales taxes should only apply to final transactions, not business inputs.
The report is part of an ongoing series advocating for taxpayers to benefit from data center policies. See all data center work at ntu.org/datacenters.
National Taxpayers Union is the only free-market organization for taxpayers that unites effective advocacy with useful research about how to limit taxes, spending, and regulation at every level and branch of government—state, federal, administrative, and judicial.
The Platte Institute’s mission is to advance policies that remove barriers to growth and opportunity in Nebraska.