23 Texas Senators Move to End the Data Center Tax Break

Texas families pay sales tax on almost everything they buy.

The biggest data centers in the state have been buying tax free.

Now 23 Texas senators have put their names on a bill to end it.

Plain English summary

On November 9, 2026, Sen. Joan Huffman filed Senate Bill 293. It repeals the state sales and use tax exemptions for data centers and large data center projects. FACT (SB 293 history)

The bill lists 23 authors: Huffman, Alvarado, Ashby, Bettencourt, Campbell, David Cook, Flores, Hagenbuch, Hall, Adam Hinojosa, Juan "Chuy" Hinojosa, Hughes, King, Kolkhorst, Ligon, Parker, Paul, Paxton, Perry, Schwertner, Sparks, West and Zaffirini. FACT (SB 293 history)

The Texas Senate has 31 members. That is a large share of the chamber, from both parties, on one bill on day one of filing. DOCUMENTED INFERENCE from the author list.

Here is what the bill does. FACT (SB 293 introduced text)

• It repeals Tax Code Sections 151.359 and 151.3595, the sections that create the sales tax exemptions for qualifying data centers and qualifying large data center projects.
• It removes data centers from the list of uses where electricity is sold tax free under Section 151.317.
• It also repeals Tax Code Section 313.009.
• Any data center exemption in place when the law takes effect expires that same day.
• Any pending application to the comptroller for certification is treated as denied.
• It takes effect immediately with a two-thirds vote of each house. If not, September 1, 2027.

Why it matters

When a big buyer does not pay sales tax, the state does not collect it. That money is gone before it ever reaches a road, a school or a property tax cut.

At a Senate Finance Committee hearing on July 27, 2026, the comptroller's chief revenue estimator said 10 data centers were approved for the exemption from 2014 to 2020, and 69 from 2021 to 2025. DOCUMENTED INFERENCE (as reported by Community Impact)

The same report says the comptroller's office estimated in 2025 that the program would cost about $3.2 billion in sales tax revenue over two years, and that the estimator expected "significantly higher numbers" after the recent wave of certifications. DOCUMENTED INFERENCE (as reported by Community Impact)

The data center industry has warned the exemption helps bring projects to Texas. DOCUMENTED INFERENCE (same report)

The receipt

• Bill: SB 293, 90th Legislature. Filed 11/09/2026. Last action: filed. FACT
• Caption: "Relating to the repeal of the exemptions from sales and use taxes for property used in certain data centers and large data center projects." FACT
• Section 5: existing exemptions expire on the effective date, and pending applications "may not be approved by the comptroller." FACT
• Section 6: immediate effect only with two-thirds of all members elected to each house. FACT

All from the bill text and Texas Legislature Online pages linked above.

What Ryan says

RYAN STATEMENT: I do not care how big the company is. If the welder in Longview pays sales tax on his tools, a billion dollar server farm can pay sales tax on its servers.

RYAN STATEMENT: Texas should want data centers. Bring the jobs. Bring the investment. But come in the front door and pay the same tax everybody else pays.

RYAN STATEMENT: When the people who are supposed to be watching the money tell you the cost is going up and they cannot even give you a new number yet, that is not a reason to wait. That is a reason to act.

RYAN STATEMENT: And when the Senate lines up this many names on one bill, from both sides of the aisle, the House should take a hard look too. Same rule for the big guy and the little guy.

What this does not prove

It does not prove the bill will pass. It was just filed. No hearing, no committee vote, no floor vote.

It does not prove the exact cost of the exemption today. The $3.2 billion figure is a reported 2025 estimate. NEEDS AUTHENTICATION against the comptroller's own estimate and a fiscal note when one is posted.

It does not prove data centers would leave Texas without the break. That is a claim on both sides, not a record.

What it does prove

A bill to end the data center sales tax exemptions is filed in the Texas Senate.

It carries 23 authors.

It ends existing exemptions on day one and kills pending applications.

And it would stop tax free electricity sales to certified data centers.

The bottom line

Texas families pay sales tax at the hardware store, the parts counter and the checkout line. The biggest buyers in the state should pay their share too.

Read the bill. Watch the vote. This is the record.

Do not threaten anyone. Do not harass anyone. Do not contact anyone in my name. Read it. Share it. Send receipts, evidence, witnesses. Put eyes on the record.